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tv   On the Move  Bloomberg  January 26, 2016 2:30am-4:01am EST

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♪ >> welcome to "on the move." 7:30 in london. 8:30 in frankfurt and paris. i'm guy johnson alongside jonathan ferro. jon, what a morning. >> asian stocks fly. the shanghai plunge over 6% and crude tumble to $35 bucks a barrel. the central bank must fulfill its inflation mandate. it's credibility is on the line. tapped federal reserve holds its first meeting of the year when they take a hike off the table.
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>> it's a busy morning for marks. here's the bloomberg of carolyn hyde. $30 a barrel. the shanghai composite closed 6.4%. they're not the highest of 2013. some bank officials are said to have been anticipating a close all that's whether to expand records. they dim the ranch. the governor used to dabble to play down the impact of lisa's turbulence on the economy. meanwhile the federal economy says it's meeting to decide whether they will pro side as
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planned today and tomorrow. the participants are unable to a tend in person but they can take part in a video conference. >> in washington as well as the federal government following a severe winter storm. guy, back to you. . we're less than and it's having an impact. let me show you what the live look likes. ook at by 1.4. 1.3 for the company. it followed righty aggressive hang high. >> a quick look at oil. friday, down 5%. this morning 29.56 the shanghai id
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composite down by 6.42%. i think this is fascinating. the e.c.b. will do even more. scentst. eight why is the world treating oil as a brocksy for the growth. another thing that spins off that is whyry that infrachuring. cred andd have lot all in some way fix whatever happens in a commodity market. i want to talkt act the markets. mario will. in order to maintain its cred, let's get back from our correspondent over in frank ford. aless sand drow.
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there is a dem. it's driven by what's happening largely. shrine toky beat beat follow up on the commodity market. >> draghi argues that this time it needs to be. they argued that this time is being's. there is a risk whether they call them. people will expect there is no inflation. central banks have to react to it. because looking at it from the outside. beyonce is back. no. inflation is being driven down by yoil. he has thrown the kitchen skink. he indicated third base.
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negative again this year. >> yes, well, she made the argument to say, ok, there are many crit ims. but. if we had nothing. would have used in a spruill and of course, things would have been different. one dragic said that she must work to maintain its credibility. she knows which will forget so in the long run, this e.c.b. sees will be getter and i want it to be just under 2%. >> great stuff. thank you very much ingeed. we're joined now by the coop it's $1.5 million under
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management. this has been the. of late. is that really more? >> i think the central banks don't have much choice. to his point yesterday basically saying look, what else can i do? and i think unfortunately, the central banks are not going to be enough. it can't ing out that just do it and end of it all. think the remarkable thing. just for asset prices. conventional wisdom is that you few your. can i just wonder if it continues to work. my other would be looking it up in the rue yo. we're dead flat. what did you make for the moves is it i eakts if us as well. but they're preparing us for
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more action in march. march. >> >> a full central banks than sort of -- it represents itself. >> particularly in europe is that while mr. droggy was first thing on the access ration. the rest of the central banking. it was pressing on the break. and that's a big issue for european bas. they will not be effective if it starts moving. you knee to more. credit them is starting to rise in the southern europe but it's till fairly low and fairly depressed. the federal resolve is going to face the qy.
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for the financial markets the can ue y have more and they pick up the bottle? i'm asfrade it does. most of the world chi is on the rise and, you know, dogs really matter? >> only to see what the fed says in the coming months. er i don't think it's staid on the trajectory of hiking place that this race is going to come every day. we need to see whether that affects the policy at one point. >> it's the best proxy for global warmth. they seem to be turned around by the market. a reaction to what he's doing and making it that as a. marcus liked to pick on one indicator. you know. thankses, and the famous
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brad. in the weeks. everyone is looking at the cruise. i think at some point it will last. they're just very focused on the fact that that there's a lot of cred into the plrge's spaced. and the marcus -- that we will have those bunnies so i got the credit space. ust like in 2008 sub prime had an expect nougs third. i think there's a big difference between 2008 which is, you know, crews going down is great for the. the real engines of the world economy and -- and in the case it was a that tass trophy.
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>> coming up on this show after the break -- up next. we'll hear what the c.e.o. of phyllis had to say. head of the open. . . x's future i would say good morning.
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♪ >> welcome back. you're watching "on the move." busy morning. let's get you up to speed. caroline hyde with the bloomburg business flash. >> the sales were impacted by the paris terror attacks and the downed passenger jet. but it expects a four-year profit to be in line with the news. german engineering firm is confident it can ride out. the company says it's been helped by lower than experted
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tax. although the business faces challenges it's making good headway. >> there's a lot of headway out there. more here politically. but then you also talk to our customers and we see that other companies would like to make more. and we could help them by improving their business. not so much equality. but the efficiency. rectify -- re certification. >> more customers turn to alternative pame methods. the company's cre oh -- it's off the chart. we'll be speaking to him at 7:30. right here on "on the move."
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and that's your business flash. john, back to you. john: thank you very much, caroline hyde. big moves. the shanghai composite over 6% at the close. you're looking for european earnings. but let met m.e. bring you your morning must listen. about his how tos on growth in the world's second largest economy. >> we had a very good rebound in the first quarter. strong order intake and good sales gross. but that came on the back of several weekend warrior. what you're seeing that growth is still possible. maybe not every corner but certainly one or two years. i'm optimistic because of our pportunities in china. john: joseph is still with us.
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joseph, you stay clear without exposure to china right now? >> yes, we do. we cri there's another thing that benefits us from this investment bubble that was in china the last 15 years. and they're going to be in trouble for a long periods of time. yes, we stay clear of those. and we prefer domestic plays in southern europe. >> it was my takeaway. the pain in the marks haven't quite reached the sweet spot and they have to maintain this 10-year commit development china. >> they have to be in china for the boom of the consumer over there. but as you look at the things, the value infesta. . by the stocks and then january happens and you get to do it all over again. how difficult is not having the messed up. i think value gets more and more
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interesting and there's more and more opportunities in this market. question have to be disciplined. and we have to stick to our lo ress guideline but when if it's something that i really like we have to have our position. >> that's a great question. i think that there's a -- there's a -- the marks thrown the baby with a bath wall to heart. people look at europe and say oh, europe is the number one brockssi. >> coming from the european economies. are exposed to emerging markets. and those companies will suffer. . that will actually benefit from the resent trends. you know, this . . you know that led to very high commodity prices.
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great news for assign and complete their expose. hat's why they will benefit. >> he wakes up three minutes away. the happening high. you know, you shouldn't use that as a metric for trading. what metrics do you look at? because we have a stain grass do what valuation metrics you metric these. . >> we still are a vilt matchup. >> i heard you. it's a whole different environment with q.e. so we finish our toment. the valuations i release is probably fixed his. we look at enings through the cycle. we do look at price to book.
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obviously we take a long, hard look at these valings. max now, we go back to the cut. >> the jon he's going to stay aquay with us. reer about 1 is minutes and it features the hard. the future unby 30. -- includingess jet who announced disappointing first quarter results. this morning despite. that and more, that's next.
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>> hello and welcome back. "this is on the move" live from our headquarters. about seven minutes away from the london market. rude about $30 bucks a barrel.
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9, 27. the move into the bond market and john is looks at this morning. >> this is basically what we're looking at. eeling a bit of draghi and a bit of pess schism. we are at minus zeero 452 at the moment. the germans beginning to react. that is very long-term char. do you believe in investing in the bond market? >> extreme risk aversion, maybe. we approach these lows below minus .4%. you just wonder how we're setting up for that march meeting. >> so it's easy to get a deposit rate through the govern council hat it airs to get in the q.e.
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>> a repeat of december? >> we'll see. let's take a look at the stocks. >> we're expecting a down day. focusing on one of the stocks is likely to fall on in open. t's half a -- it's had a rough start to 2016. this time we get the numbers from easyjet. down 3.7%. revenue is $930 million pounds. egypt, the paris attack, they say have hurt appetite for revenue in the second quarter. fx taking a hit. there's a silver lining, the profit in line with expectations. they show a mark of improvement featuring november and december. when you kill senior the initial reaction. an easy -- look for jet to fall.
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here are a few stocks that are reflecting that. stock company focusing on their health care area. they're trying to say, look, that cell of the business might be put off for the second half. adjusted earnings up 8%. looks like u.s. and china outperforming, that came out earlier than expected. came out last night. biggest industrial group here in europe. raising that for your guidance. earn ygs for shara. you've been waiting for this. and indeed for weeks. zr how long will that last? >> thanks caroline. those numbers again. you go to shanghai. you go to the crew.
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$35 a barrel. first record. all-time low on you. would say this, risk off. and now to the markets in four minutes' time. jonathan: hello and welcome to
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"on the move." guy johnson has your morning brief. guy: asian stocks were hit hard. the shanghai composite fell below 6%. the ecb president says the central banks must fulfill the mandate. the federal reserve begins the first meeting of the year. will volatile markets leave the table? jonathan: we are 20 seconds away from the open in europe. by 147 points.ff
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let's get to that open with caroline hyde. is once: risk aversion again front and center one comes to european markets. composite is down more than 6%. theonder the man who made 6200% turn is now saying go short or get out. exactly inspired much risk appetite out there. we see the cac opening up a little bit lower. are dragged down once again. correlation is spiking between oil and spikes. correlation is at its highest since 2013. cac is down by 1.7%. what if follow-up we have seen in brent. oil is below $30. some are saying $29.70.
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there is a correlation between oil and stocks. there is also a correlation between yen and stocks as well. we have seen near record highs with the correlation between the yen and global stocks. the push for safety pushes up gold. clearly, money is moving into the havens and debt markets. there is money moving into u.s. debts. the 10 year yield has moved down two basis points. we are still saying negative fields. down byower and lower 4.5% in the negative area. let's have a look at some of the stocks to watch. one is set to fall on the open because it did miss the forecast. easy jet is down. the have heard -- the terrorist attacks have heard revenue.
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-- have hurt revenue. up 2.31%.s it is all about the health care in china. this is a company that is really orientating itself. siemens are a little bit slow to wake up in terms of the equity market. we are likely to see siemens rise as well. back to you. guy: thank you, caroline. europe is not exactly having a great morning and it was a terrible afternoon for asia. let's get to the details with david inglis. id: the games we thought the start of the week are reversing. investors are trying to hold onto gains. it was clear the from the get-go that the plan was to sell.
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obviously very risk-averse. those came in to buy lot at lower and lower levels because the asian benchmark went from session low to session low. it was the trio of oil prices falling, equities falling, and t he correlation with the yen. the yield on the japanese tenure is closer to its record low. we had a fair much of good news eco-wise. the central banks may need to act earlier. we also had another massive injection of liquidity from the pboc. they are trying to make sure there is enough cash in china ahead of the chinese lunar new year holiday.
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somehow though, investors took this as a cue. shanghai ended the low 6.5%. investors took this that things might get worse. outflows might deepen and liquidity could get tighter. off.f stock in asia sold that has become all the more common. 17 trading's so far this year and all but four ended in the red. guy: we have risk aversion in the session. the ftse 100 is down. the mining names and energy names are also down. there is a lot happening in the show today. first up, we're talking china. the roller coaster continues as the shanghai composite dropped 6%. after that, it is day two of the
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rouhani roadshow. and later, easy jet has its wings clips. ♪ jonathan: the shanghai composite has fallen more than 6% today. policymakers hope the extra cash will help keep foreign costs in check. we have the lunar new yea rholar holiday approaching. we have our correspondent in hong kong. what happened today, robin? today wast happened the renewed concerns about capital outflows. that is causing this uncertainty in stocks and leading to the
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assumption we have seen regarding the volatility we have seen this year. i at the moment, people are concerned about rising capital outflows as you know we have had. we have had record figures over the last month. they are expecting those to increase as the yuan depreciation continues. the economy is at its lowest in 25 years. these are all things that are causing increased concerns today. jonathan: just to put the stock markets to one side, the shanghai composite has seen the craziness fall to a 2014 low. for many people, these are ad hoc cash injections. why don't they do something that could have a longer-lasting effect? robin: over the past few
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years, we have seen the money market rates spike before the holidays. the chinese holiday is in the first or second week of february this year. we were happy to let that happen in earlier years, but this time markets are having global effect. they did not want to risk this. what we have heard so far is this is short-term. the big question is, what will they do and what will happen after the lunar new year ho lidays are over? will this be a short-term or a long-term thing? the reserve requirement ratio for banks flooded the market with cash, leading to further market depreciation. they want to create a short-term stability, but after the holiday we will have to see what happens. jonathan: thank you very much, robin.
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still very much with us. the chinese authorities are trying to manage this on a day to day basis and figure out how they work their way through this crisis. do we have a long-term strategy? they are trying to get the economy moving, i believe. hard for a investors to figure out what is going on. there is a lot of uncertainty going around that shift in policy. there is a hard landing taking place in part of the chinese economy. it is not clear that the rest of the economy is picking up the tab. investors are staying clear of anything that is to do with china or emerging markets linked to china, as well as commodities obviously. jonathan: a knee-jerk reaction would to say this is a china story. the banks are down.
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there is another story going on. if this was two years ago and china was not in the headlines, we would be having a much more focused conversation on italian financials. how concerned are you with what is happening in italy? >> i am very concerned. there is part of the italian banking sector that is strapped for liquidity. there are parts of the italian banking sector where there is a developing bank run. unfortunately, it is self-made. it is a self-made situation. it is really the coming in of the failing roles at the beginning of this year that have instilled this doubt that perhaps, the deposits are not completely safe with european banks. i think that has created a lot of uncertainty. i understand that the rules look great on paper. they take care of moral hazards,
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but systemic risk comes back. jonathan: it is absolutely systemic. it is the third largest bank in italy and it has $200 billion in assets. it would be a disaster if something happened to mps. clearly, credit markets have shut down to mps. it is not mps' fault. i think they are in a much better shape than people think. this is a managing team that has cut costs by 25% over the last four years. that is an infamous effort. it has cut its assets by close to the other bank. it has raised 15 billion euros in capital. the problem is much more contained. getting unfortunately, it is european policy makers that have made the matter much worse and have treated this doubt. it is the bank of italy intervention in december.
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that created some doubts. then, it is the circular that comes out of the central bank of europe saying we have a problem with six italian lenders. and then they name them. that is disastrous. jonathan: let's look at the next chapter. i want to understand the endgame and what the consequences are. you can say bps is a systemic. if it is solved, do you think it could spread? >> i don't think it is solved. i think we need a solution quickly. we need to address the mpl issues and italy. the italian government has been out there with a bad bank plan for more than one year now. unfortunately, the eu commission not have any of that.
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spain recently in 2012 created the bad bank. germany put hundreds of billions in its financial sector. italy puts nothing. the only problem with the italians is they are arriving late to the party. d onrules have change don them. i think that is a real shame. i think brussels will understand that and they will be a bit more flexible because a have to. otherwise, emu will go. jonathan: make their down across the board in italy. what a session. the ftse 100 is down by 1.47%. the dax is up by 1%. guy: the correlation in oil and what is happening in stocks is absolutely fascinating. i will show you a chart after the break and give you a heads up on what is happening, a sneak
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preview of what this is. this is the oil-s&p correlation. a stockhell of correlation chart. guy: up next, the rouhani road show continues. a lot of policy is centered around energy. we will talk about this when we come back. ♪ >> what is going on in the oil
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market should not dictate what is going on in the equity market. i think people are confusing this supply demand picture in oil and are saying, there is a slowdown in the global economy because no one is consuming oil. i think that is wrong. if people that are selling equities had made an oil oil lower oil price, they would be off. guy: they were talking oil last week. now, iran and italy signed contracts with rome last night. is fishing forni investments in his country's oil industry. ryan chilcote is following this story. ryan: all you have to do is look at who the iranian president is dining with. he sat down last night with the
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se ceo. that is an obvious one from the oil company's perspective. we do not talk a lot about it, but this opportunity is coming at a difficult time for them. andught up with him here they said they need to replenish their reserves and do that they need capital expenditure. the industry is going to cut back, which is obviously by default going to hurt their reserves problem. have a listen. >> we remain at the same level last year. we are between 15% and 20%. we have a long-term cycle.
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this is what the industry is doing. iran develop its reserves is a well telegraphed interest the oil companies have. the other side of it is they are refiners and are interested in buying iranian crude. iran just sold 600 barrels of its crude. the greeks got in on it last week. they were the first to buy post sanctions crude from iran. the italians want to do the same, as to the french. jonathan: thank you, ryan. joseph is still with us. we were talking about italian banks. >> it is not easy to play. there are a couple of industrial place. they are smaller companies that have some deep roots in italy
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that will probably go back and will do well after this. the more interesting theme is domestic demand, which should be prices, by expansionary monetary policy. guy: do you prefer the domestic play? when you look at southern europe and the risks that still exist there, i promise you we are not done yet. everyone i am talking to says there is plenty of problems. portugal still has risk. we still have governmental issues in spain and elsewhere. how do you extract the political from the corporate because they have been so closely tied of late? >> i think you have nailed it, guy the main issue with southern europe is political. there is a lot of uncertainty and we have seen it. i think portugal will actually be alright.
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it will not be as good as we thought it would be, but it is going to be all right. i think spain will also be ok. i don't think we will have a socialist government. i think that will hold. they don't have enough seats in parliament. for thest too much coalition to stand up. about theworried politics in the u.s. these days, aboutn brexit, than i am southern european politics. what we saw in greece last year is really a template, there is some much you can do and there is so far you can go. at the end of the day, the maneuvers of these governments are very limited. of amber the ceo capital, thank you for joining us. another where he europe is the bond market. we have a two-year yield in
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germany -2.46%. that is the all-time low. the five year yield is -2.54% this morning. a record low yields in the two-year yields and five year yields. investors are shirking volatility. is that the safer bet? ♪
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jonathan: good morning and welcome to "on the move." the shanghai composite is down asian session. we have all-time lows on the german two-year yields. the ftse 100 is down by 1.72%. e is below $40 a barrel. let's get to the bloomberg first word news. asra: asian stocks reserved oil slipped back to below $30 a barrel. that is that if u.s. data which global glut. the shanghai composite closed 6.4% lower. the coalition between chairs and oil is at its highest -- the collision between shares and oil is at its highest since 2013.
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sources tell us of the slump in oil prices and a sluggish wage rises have a supported the outlook. the federal reserve is meeting to decide interest rate policy. will it proceed as planned? attend in person can take part by videoconference. the federal government closed yesterday following a severe storm which disrupted travel for the region. guy: thank you. caroline hyde joins me now. caroline: there are so many great charts out there. i wanted to focus in on what is happening with the vix. this is starting to signal for many that it is time to get out,
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time to pull out your money. the front end of the curb is very elevated, versus the rest. when you are seeking protection, it is significantly elevated. people are now getting out of this trade. $850 million has been pulled from the two most popular exchange rate products related to the vix. therefore, you can only see short-term futures. in fact, people are shorting them now. why? they think that move is overdone. the front of the curve is to elevated. ine are saying this big move the vix, the central bank is about to come in. they feel therefore, it is time to get out. time to pull your money out. others say, it is time to cash
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in. so, different reasons for the elevated curve. jonathan: we will discuss the oil market next. brent crude is below $30 a barrel. ♪
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welcome to all of you. a very good morning to you in new york city this morning. we are 30 minutes into the session in europe. the stocks of hundred is down by two percentage points. the ftse 100 is up by 105 points this morning. the losses are lead by the minors, of course. let's get to the other headlines in this market. we've a big headline in asia. the shanghai composite is down another six point 42%. that is positive correlation between stocks and oil. rent crude is off by 3.6%.
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oil is below $30 a barrel. we will be talking about the risk for the italian banks. what is going to happen to those banks? we have two-year yields at full-time lows, as well as five year yields. let's get to some of the stock movers with caroline hyde. caroline: we have to focus on the services sector because that is being pulled down today. italian stock is down as well. shares are halted. why? not only is the oil price low, yut hsbc said, stak cautious on oil. it won't be until 2017 that we see a reprieve. they might see more and more of the diminishing ability to raise funds at the moment from these
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companies. is diminishing as well for someone to come to the rescue. it is a painful place to be at the moment if you are in oil services. let's focus on a few that are outperforming. up three point 8%. it is leaving the pack, along with siemens. these are the best performing stocks. earnings start to impress the market. phillips came out with numbers that are better than expected. you will see a 13% increase in earnings and an 8% growth in sales. they say, is china where it increased? he's china where the outperformance was, along with the u.s. as they focus in on medical gear. this is a country trying to get into the technology of health care. siemens is all caps light as well. -- is on the upside as well.
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still, they are worried about the macro economy and the geopolitical developments. overall, earnings-per-share are up 16% at least. jonathan: thank you, caroline. visa europe's revenue has just hit a record. here to talk more about the earnings and the future plans is nicholas. good morning and nice to see you. i want to ask you a broader question. we are living in a world with incredible financial tension. does that get reflected into anything that you do? does it lead to into a consumers think and do? >> obviously, everything impacts consumers. from a payment perspective, we don't really see that. it is just as we are winning over cash. arepayments for visa
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convenient for consumers. they use them more and more and therefore, our numbers keep increasing. of cash,erms of use that is something i want to investigate with you. bank ofd about the england earlier and moving toward a cashless society and what it means for a monetary policy. who else is close to this? >> i think the u.k. is getting toward a cashless society. for example, the huge growth last year was amazing. most of the transactions done face to face where done cashles . -- were done cashless.
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guy: how does this change the consumer and more importantly, the authorities? how does this program change the perception of money and the management of money? first, it isy that very safe. it is very reliable. .t is very easy and therefore, from a consumer perspective, i think it is even easier to keep using it. clearly, from a government perspective, they like it very much. i travel through europe every weekend what i hear from the government is every time we cash goes down. and makes a lot of sense in terms of transparency. jonathan: you mentioned a cashless society and safety. the visa debits and the
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mastercard debits, any payment with the contactless payment, that group is fine. the apple pay growth is not. what difference do you see there? why is that? perspective,opean the launch was last summer. therefore, it takes sometimes for customers to get used to it. from at able to say global perspective if it is growing incredibly. what i would say is, from a consumer perspective i believe that you need a different way of pavement. mosttake the underground probably i would use my contactless card. through a bigger purchase then of course, i would being.ugh a human
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and then you have the option of mobile payments. and internbile et are growing year after year. so, there is a trend. jonathan: what changed? back to those nature of money, is that the direction of travel here? >> the direction is very interesting. i'm not sure if it applies specifically to payments. when you go to a merchant it is all about authentication and instant authorization. this is more about quick settlement. usually to take several minutes, that is something no one would be accepting of today when you are queuing in a merchant or shop. therefore, you might have a lot of applications for transfers etc.
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thathe moment, i would say it should prevail in terms of merchants these days. guy: thank you and congratulations on the numbers. can intelligence help prevent future cyber attacks. we will go to tel aviv. ♪
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jonathan: hello and welcome back to "on the move." two words are dominating the session: risk off. the ftse 100 is up by 1.63%. the mining names are leading the losses throughout the first hour of trading. the big global headline once again belongs to china. the shanghai composite is down by ask .4%. the positive correlation you keep peering about, crude is lower and stocks are lower. at is below $30 a barrel $29.57. despite more doveish rhetoric euro is thatthe is stubborn rate. guy: the market is pricing of the fed rate hikes.
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this is what is being priced out shadowing what draghi isagh doing. jonathan: i think if you are seeing anything on the back of front endhe hope the of germany is on the all-time low. .uy: interesting stuff let's talk about some of the stock stories we have been talking about. philip shares are up after the company had revenues that beat what was forecasted. despite the slowdown in china, he remains optimistic about the future. >> we had a very good rebound in the fourth quarter. we had strong intake and good sales growth. that came on the back of several weaker quarters. i think what we see is a more bumpy road in china, where growth is still possible. maybe not every quarter, but years,nly over one or two
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i am optimistic about our opportunities in china. jonathan: let's get to caroline hyde with more. the markets are not optimistic about china and it reflects the conversation in the world economic forum. executives are ok about what is happening in china. caroline: health care is a growing area and they have managed to change the orientation of this company. they are moving away from lighting. china was not able to buy into the u.s. in the way the regulators were satisfied with. this is a company that is betting big on a $125 billion health-care bill. chinauarter, he got growth and growth in the united states as well. adjusted earnings were up 13%. what is also interesting is siemens. they are exposed to the oil and gas selloff, as well as china.
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this company also manages to outperform. these companies signaled that the market is concerned about china, but may be some of the corporate areas are managing to hold growth. guy: these numbers really mirror staff. if this is a reflection of what we are seeing here. china was ok last year, but 2016 might be a different story. ceos have yet to fess up to that. want visibility about what is happening in the future, you have to get it from the corporates right now. forecasts are not any better than the federal reserve's. is this the best predictor of what will happen in the future. could just be as simple as this. jonathan: easy jet, here is a company that has been doing terrifically. you wonder if that is a concern
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about what is happening with that company. caroline: it is merely earnin ng what we see in the ftse 100. this company is exposed to cheap if political risks. that is something we cannot ignore as well. we are likely to see a company try to reign in spending. there are trying to protect their bottom lines. the only area i can control are therir costs. the cost is coming down for easy jet. passengers actually grew up 8%. they say revenue was hard. -- revenue was hurt. this is why the stock is down, but it is not laggard today. that hat goes to oil and gas. jonathan: we are 45 minutes into the session and equities are lower.
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ry is getting a little bit boring. everything is down. oil is down, stop there down, everything is down -- stocks are down, everything is down. guy: when it comes to cyber security, protecting against known threats is easy. but we are trying to protect against malware that has not even been invented yet. we are joined from the cybertech conference. we're live from tel aviv. reporter: i am joined by the founder. it is great to have you with us. this cyber security company is the first to apply artificial intelligence. what does that mean exactly? >> this is a very unique technology.
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it is a very sophisticated the rhythm. scienceed from computer . we are the first company in the world that have the idea to take this artificial intelligence technology and implemented with filer security. reporter: you launched in november of last year. how much traction are you having? >> we are having excellent traction with the banking, financial, and government divisions. awaye just four months from the launch. reporter: you say you are successful. we are an independent trust. in most of the cases, we are up rates.99% detection most of the companies in the world can tell you that
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something is bad, but cannot prevent it. we are doing both and we are doing it in a very different way. percentageigher rate. reporter: what is the israeli response? >> the 1%, we keep it to the future. it is very hard to bring 100% in th security. between the benchmark 30% and 70%, we are doing almost 100%. there are many israeli security setups. they are all doing 20% and 30%. you are doing 99%.
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>> i assume that in three years from now we will see different players in the market. they will either create themselves new technologies or innovation, or they will acquire other companies. the organization is not working anymore. we have seen a huge increase in attacks. the existing platforms are not sophisticated enough to prevent these events. i know you will not tell me how much money you have raised. you are raising more now. think he will reach? >> i think we will reach around $50 million u.s.
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we are looking to build a big company, a billion-dollar company. we are trying to establish our footprint as an operation center and to increase the development. reporter: thank you for joining us. jonathan: you have it there. artificial intelligence. that is the future for soc iety's security. very much, that is from the conference in tel aviv. we look ahead to day one of the rate decision meeting. see you in a moment. ♪
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jonathan: welcome back, you are watching "on the move." we're looking at the u.k. market outperforming short sterling strip. the pricing out continues. no economic data today out of the u.k., but there is plenty of focus on the economic data in washington. today marks the start of the fed's two day policy meeting. no action is expected this month. there is volatility on the market with the chance of four rate hikes. this seems increasingly unlikely. at thed all about this
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economic world summit. >> i would be very surprised if we had another increase. >> i think potentially they tighten once more this year, but i am not a believer that they tighten four more times. >> marches off the table. even april is shaky. maybe by june. >> i say, one or two is where they will be. the foreign market is too worried about the action. >> growth is disappointed. they are lower, rather than higher because of the falling commodity prices. >> i think it was necessary for the fed to do this. the fed's credibility was on the line. >> i think they should wait and watch and see. >> i think she will be driven by the fact that unemployment continues to maintain these
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levels. we may have a full handle on unemployment. that is extraordinary. lso, inflation might get to 2% with those increased rates. manus: we have the january policy meeting. let's get more from richard jones. the shanghai composite is down 6%. brent crude is below $30 a barrel. the front curve of the german purpose of performing the two year low. does this circle back to the fed? >> i think it does and just listening to the comments, i don't think anybody believes the plots. i don't think we will get four this year. it is interesting to see what they have to say. there has been a big shift since you last meeting. jonathan: the market has been right and the fed wrong for a number of years now.
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i wonder what this means for the credibility issue at a time when draghi is talking about the same thing as well. >> you have to argue why that is happening. the ability of central banks to forecast what is going to happen in the economy has been in tatters. the question is why the markets really get better. >> if you look at what james gorman said in that little piece we had from earlier. he said the fed had to hike in december for credibility reasons. i think he is correct. in the longer term, i think central-bank credibility is taking a hit. there forecast have been too bullish. the market has been right because the market has taken a more sanguine view. it will not change anytime soon. guy, duly have to do this for their own credibility and who put them in that position in the first place?
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it wasn't the data in the inflation numbers, was it? stay with bloomberg tv. "the pulse" is next. ♪
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guy: the shanghai composite closes down. oil tumbles below $30 a barrel as stocks could hit in europe. ecbo draghi says credibility is at stake. the fed begins his meeting with investors doubting a four hike 2016. who's afraid of china? phillips beats. europe's china bowls ride out the country slowdown? -- china bulls ride out the country's slowdown? 9:00


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