News about funeral arrangements. The funeral will be held in about 10 days. There is not only going to be a public memorial but a private memorial. Of course well have complete coverage go and through mr. Mandelas legacy throughout the program. Manus, we have a lot of data. We have tensions easing a touch. Well go through what Nelson Mandela gave to the world. What else are we watching today . The germans have a healthy look at inflation. Next year, germany will grow by 1. 7 . We go to the unemployment numbers later today. Euro dollar is declining to 1. 4616 despite yesterdays e. C. B. Move yesterday or lack of movement yesterday and lack of Christmas Party for the market remains high. The drop has stopped for now. Lets put it that way. The u. K. Had its longest losing streak since april. Down over 2. 5 this week. The dax is at a threeweek low. Continuing a little bit lower despite that upgrade to growth. Goldman sachs and Deutsche Deutsche say the overall relax nation austerity. Going to see growth around the world double since 2010. That stepping back from austerity will begin to play into the numbers going into 2014. We wait for unemployment report. The median estimate is for 185,000. Now where are we in terms of some of the stock news . Postnl now, nestle is selling over a billion ollars worth of stock in givaudan. They are reacting aggressively. Postnl down. The opening prices begin to filter in, you get a better complexion of how the market works. B. P. Up 3 1 3 of 1 . Thank you. Joining us now for a look at his 2014 outlook for European Equity markets is Goldman Sachs chief equity strategist, Peter Oppenheimer. Talk to me a little bit about what youre expecting for 2014. 2013, equity markets have had a good rally to say the least. Can we build on that . I think we can. Rellive to other Asset Classes as well. There are two wives looking at this. The prospects are still very poor and equities will benefit from what we expect to be a reasonably good pick in global growth. Were expecting pretty decent gains in europe around 15 to 15 . Plus 12 to 15 , plus dividends. How much of Equity Growth has to do with fundamentals and how much has to do with the stimulus being delayed until april or march next year . We are in ra transition especially in europe from a Market Driven largely by multiple expansions as expectations rise for a recovery and the risk premium comes down, people get a little bit more confident. We think the fundamental growth is going to be key. But that growth is not purely dependent on europe on its own. A lot of companies of course in europe heavily dependent on the rest of the world. It is a combined effect with an improvement in margins that we think would bring profits up around 14 across europe as a whole. Were so hooked on q. E. That people know that it will come to an end at some point, but it is not being priced in at all. Well, i think that the end of q. E. Is being priced in. It is heavily flagged. I dont think it would be a great surprise to anyone that tapering was announced or started. The issue i think that is critical is whether that has a major effect on the start of all Monetary Policy. When they announce tapering, they will also reduce unemployment threshold in the u. S. They will keep Interest Rates low for a very long time. We would expect funds rates to emain unchanged in the fed until early 2016. So the day that janet yellen says were going to start tapering, youre not expecting a big correction . The reaction was not good in bond market or equity markets, but to some degree that has embeded the idea that this is it is going to happen at some point as you stay in the not too distant future. We would guess that the response would be a bit more modern at this time. Again, the crucial thing is what the start of tapering the start of Monetary Policy overall. We think that, you know, the conditions will remain pretty adom dating. That is the key thing. Your outlook for 2014, what should by watch ought for in terms over the big dangers that equity markets should be looking out for . I guess there are two key risks. One of them is related to the discussion we just had. Plausible that bond yields spike sharply higher as they did in may of this year and given the equity evaluations are higher than they were then, it would leave equity markets vulnerable to a setback if we were to see that kind of thing happening. We estimate in europe that the duration over the equity market is around 20, so each 1 rise in bond yields would be worth a 20 move the the index. That is a key risk. The other one is that profits just dont recover. Ok. Well talk more about that after this very short break. Thank you. Well talk about the biggest the second biggest risk that we have for 2014. Here is a look at what else is coming up on on the move. U. S. Job gains are set for the best year since 2005. What to expected from todays report. Can brazil bring its a game . We look at preparations in the host country. From prisoner to president. An in depth look back at the life of Nelson Mandela. Im Francine Lacqua in london. This is on the move on Bloomberg Television, radio and streaming on your phone, your tablet and at bloomberg. Com. Of course today we have the u. S. Jobs report out later. All the data from the u. S. This week has set expectations for a strong number. Our markets editor manus cranny joins us with the latest. What exactly can we expect from the jobs report . In term turnovers actual number, the median number is 185. The numbers are pricing in perhaps a stronger number. The Services Number didnt quite live up to the estimate. Put that together with the private indicator we had from a. D. P. And the consensus is you can be looking at around 200,000. It is about the velocity and momentum within job growth and whether those jobs that are being created actually translate into spending power. And to that end, this year is going to be the best year since 2005 and youre lookingan at an Unemployment Rate down around 5 . It will be the correlation between tapering and the guidance in terms of the Unemployment Rate that really begins to count. So manus, what are markets exactly pricing in . Have a look at the 10year Government Bond yield. This is important in term turnovers morning market overall in the u. S. As well. This 3 , were encroaching on the 3 level. You the highest level in bond yields for three months. The question is this. Were probably one good payroll number away from a complete unwinding of the bond markets. As you and peter have been discussing, 1 percentage move higher in bond yields represent a 20 drop in equity markets. Get ready for more volatility. The volatility in the bond markets is set to retrace higher, francine. Dollar is lower. Stocks, youre seeing a little preparedness for the end of the year and indeed the potential for the door being open. That is highly unlikely. Manus, thank you. Manus cranny there. For more on the u. S. , Peter Oppenheimer is still with us. Thank you so much for sticking around. We were talking about the risks you are seeing for 2014. You mentioned too, one was the fact that with this tapering we could see moves in fed funds. The other one was that profits may not follow fundamentals. Fundamentals are not there to for profits. Is that worldwide or the u. S. . Generally worldwide. There is a big expansion of evaluations over the past year. We believe that were now moving into a phase where really youre likely to see valuations remain more stable and the markets driven by profitability. The u. S. Is more vulnerable. Profit is already at a record high. So are margins. So are sales. We they were not likely to see much margin exfrangs here. So the driver to earnings has to be top line in growth. Were looking at 8 growth next year for the s p. That is below the Profit Growth we would have been expecting in europe, asia and japan. What is your best plan for 2014 . Equities or still kind of a range of equities in the world . I think first and foremost, our view, which has been in place for two years is to be positive on equities versus Government Bonds. That is number one. Within equity markets, our preference really is for a combination of nonu. S. Equity markets. The best return forecast we have are in japan and europe over the course of the next 12 months. Not because they necessarily have better economic outlooks but because you a recovery in profits from a lower level. More leverage. Top line growth. You get a little bit stronger Profit Growth to drive the markets higher. There was a lot of concern surrounding japan a couple of months ago, the financial experiment. Were starting of course to see a lot of freedom on yen. Does that make you comfortable that this will work what they are trying to do . I think that our expectation is that it will work in the sense that well get stronger growth next year. The benefit of reform, supply side changes and will have a positive impact on profits. We have already seen a very strong rise in Profit Growth this year. Were expecting again, a strong rise in profitability over the course of next year. From current valuations, that justifies a decent year in returns. This afternoon, fifa will draw 20 teams that qualify for world cup in brazil. While the teams and fans wait to see which nation also face off, brazil, the host warms up for next summers event. Our jonathan ferro, a big football fan is all over the story. Today is the day we find out who is playing who and crucially where they will be playing those games. Today they will go on the internet tonight, book their flights and hotels and hopefully secure some of those tickets. This is big business. 00,000 visitors expected to go into brazil for the world cup. Jon, the draw comes at a time when most people are wondering when the stadiums will be a lot safer and when they will be finished. It is, francine. Certainly. This is meant to be the time that brazil came on the the international stage, showed off their infrastructure, shiny, brand new, upgraded stadiums. Meant to be finished at the end of this month. Big problem. Many wont be. Delivering the weakest growth. You have a rising middle class asking for more from their government. There were protests. A lot of people in that country wondering who why their country is spending just over 3 billion on stadiums when people need a lot more help. If you wonder if that is lot of money, it is. It is almost three times as much as south africa spent on their world cup. People are asking when are those stalms going to be finished. It puts the spotlight on an emerging economy. I guess investors such a yourself, i know you cover emerging markets. What is your take on brazil overall or emerging markets . I think emerging markets in general are facing some head winds. Really a reverse oovel what we have seen in the last many years or diamondback aid or so. In particular, the previous decade we were seeing falling global Interest Rates. We have a theme in Commodity Prices which which is in some way reversing over the medium term. Thirdly, you had a significant boost to many emerging economists as a result of the labor markets which is becoming less parent as we move forward. When you add to the fact that some emerging markets have also built up external making their currencies vulnerable and leaving them also vulnerable to inflation and pressures and rising rates. The cocktail i think results in more concerns about merging economies and their markets relative to what were seeing in the developed economies where a more sustained economic recovery and profit recovery, i think, is coming flument peter thank you so much for that for now. Peter oppenheimer of Goldman Sachs. He stays with us. His final thoughts on the sectors are coming up next. In a strange way quite happy. I mean, he led an extraordinary life. He really wasnt alive to the world over the last two years. And you know, he really just didnt know what was going on. So i think it was merciful that he has finally died and he has just left the most incredible legacy. I dont think there is in the last century that has meant more to the world than Nelson Mandela. Welcome back to on the move. That was Sir Richard Branson speaking to bloomberg tv about the death of Nelson Mandela and his legacy. Here are some companies on the move. The cut comes after a record first half loss yesterday. With the downgrade, they lose the status of two global airlines. The news comes as chinese consumers return to japanese brands. And ford c. E. O. Alan mulally will stay through 2014 according o a bort director. Mulally is considered one of the leading candidates to take the top job at microsoft when Steve Ballmer steps down. Back with Peter Oppenheimer. Peter, thank you very much for staying around. We talked about your global view and view for 2014. Talk to me a little bit about the Industry Groups you want to be particularly aggressive in 2014. I think if we concentrate on europe, first of all, generally speaking werks prefer cyclically exposed sectors. We think they will benefit from a recovery in growth over the next year. We like to get into a sector where we see decent growth. It has generally been undervalued through the crisis. There are some exceptions, though. We remain cautious. Very often, they are the same sectors. Companies that have been big beneficiaries of a booming commodity investment and Infrastructure Investment over the last few years. This is why we have been underweight machinery, basic resources, oil, downgraded in industrial good and services as well. Youre upgrading banks. You have liked certain banks. Now you take the view that they will grow as growth is more sustainable. Yes erks thats right. We have been more positive on an insurance sector for most of this year. It was a relatively less risky way of benefiting from spreads with less regulatory overhang. We think it is easing and there will be more clarity as we move into next year with potential European Bank supervision. The Capital Position is much improved. We talked so much about tech. That is all we have talked about in the last six months. Is 2014 going to be another tech year . Yes, with we like tech globally. We do expect to pick up an investment spending over the course of the next year. Many places will benefit, a lot of Technology Companies because a lot of the investment is going into increased efficiencies rather than the capital deepening or machine machinery or equipment. Peter, thank you so much for being with us for the first half of the program. Peter oppenheimer. Coming up on the program, we take a look at the life and legacy of Nelson Mandela. As we head to break, several elebrities have been speaking. Bono said welcome back to move. Im Francine Lacqua at bloombergs European Headquarters here in london. Wiver 30 minutes into the were 30 minutes into the trading day. Lets see how things are shaping up. Stocks for the moment pretty much at advancing. You can see the character the cac the dax and the ftse up. Euro dollar will be driven by the sentiment from the u. S. Jobs data. You can see dollar yen 102. 19. Chief abe is calling for a summit with the chinese president. He wants to discuss tensions over an air defense zone in the east china sea. Japan has its own zones to protect its claim to strategicically important islands. The port of hamburg has listen closed as german and danish residents cope with a strong north sea storm. London also closed the gates it is a storm passed through the british islands. 100,000 are without power. Well wishers are mourning the death of Nelson Mandela. He died yesterday at 95. David cameron spoke about the Freedom Fighter late last night. One of the brightest lights in our world has gone out. Nelson mandela was not just a hero of our time, but a hero of all time. Well, Nelson Mandela served for five years as south africas first black president after his African NationalCongress Party helped end apartheid in 1994. Here is a look at his legacy. A free man taking his first steps into a new south africa. From prisoner to president. Nelson mandelas 1990 release from jail signaled the end of apartheid. He would go on to become the countrys first truly democratically elected leader. I Nelson Mandela do hereby swear to be faithful to the republic of south africa. Born to a local chief, mandela was one of 13 children and the first member of his family to atend school. Apartheid that made colored south africans second class citizens. As white south africa became more aggressive, so did he. As the head of the armed wing to have African National congress, the a. M. C. , he led violent, sabotage attacks and was arrested and tried in 1962. He would spend 27 years in jail, but he was never forgotten. 4 eventually international and internal pressure led president declercq to announce apartheid would be dismantled and mandela would walk free. But he reached out to his former oppressors and tried to heal a divided nation. In 1993, he and declercq shared the nobel peace prize. Fellow south africans. We appreciate the con contribution they have made to the development of this country. In 1994, he voted for the first time with millions of his fel