Next up, the business of Wealth Management. The ceo juerg zeltner. One of the conversations what are the conversations he is having with clients around the world . What a mountain, fran . What a mountain. A couple of mountains. Some exclusive and great conversations throughout the morning. T corporate nose. News. Is this the turning point . It is the best Clothing Sales he has seen in three years. Like her like. Like for like. Up. 06 . Not much growth but it is some. We are starting to see the models starting to get payoff at the till. We are expected Marks Spencer to trade higher, up 2. 7 . The clothing is looking better. Big bets on international growth. Picking up international growth, we go through carrefour figures. 2. 7 you are watching greece. A government spokesman has said that they are starting to raise 2. 5 billion euros. He says the offer is six times over described. Versubscribed. The books open officially at the top of the next hour. All day toke get results. Some people are talking about a yield of under five percent. Given that the fiveyear is yielding 5. 87 . That would be a huge success for the government, but mainly a political one, francine. David, thank u so much. We will have plenty more from greece. We were mentioning those chinese data in terms of trade. Fell. At the same time were hearing from the premier that says that the nation is trying to roll more policies. The markets are at ease with what were hearing from china general feeling is that, of course, china is slowing. We have unexpected figures below expectations but at the same time because it is still not integrated in terms of the world economy, and the government has such a big handle on it, they can manage this. Everybody is giving china the benefit of the doubt. Look at those trade numbers. The export numbers contracting again. How much can you read into this . Read much into this data. They are given the benefit of the doubt. The government says 7 . How will they do that . Can you deliver seven percent growth and to the reforms they want to do as well . That will play out over the next three to four years. It is like moving a huge tanker. People say, even if it is 6. 5 , if it goes below six percent as when we start worrying. Jon, what else are we workinloog at . Greece. Crisis over . Is this the search for yield gone too far. U. S. Higher. Fed minutes more dovish than anticipated. Expected to carry into europe for a higher open. The ftse 100 up by. 8 dax up by. 25 . . Chinese trade data is weaker than people anticipated. Forrise contraction exports. Imports lower as well. This is what copper is doing. Training lower through the morning. China the biggest consumer of the metal. Coopepper shaking off the early decline. Looking at the aussie dollar. This is something that is not paying attention to that we data out of australia. Usually this one goes lower off the weak data out of china. The sex performing major the sixth performing major currency. Economists, all of them think this could go low lower throughout the year. This one pushing higher because once again the data out of australia beating forecasts. Unemployment coming lower. This one right here. Is it evidence the rba will finish that easing cycle, or is this the kind of headache they do not need . Thank you so much. Jon ferro with the latest on the markets. Joining us is the head of european equities at old Mutual Investors where he helps oversees nearly 16 billion pounds in assets. Thank you so much for joining us. Give me a sense of where we are in the markets right now . Earnings season. A lot of focus on fx. And valuations. Analysts had been trying to talk down their earnings just because it seems they are tweaking the cost cut instead of growing. I think the numbers have been burdened in the First Quarter because particularly emerging markets fx side. That has led to some downgrades during the First Quarter. That is lowquality downgrades. Fx can easily bounce back again. I think what is happened is the markets have been an upward ranging trend the last couple years. We got to the upper end of that trend. Central banks. It is. Central banks are very accommodative at the moment. In terms of the earnings crop, are you worried that this is a fictitious shareprice Growth Without real fundamentals. We are seeing growth in europe, sure. But 0 point something. It is a small amount of growth is coming from negative growth. You have a big inflection coming from negative gdp growth last year to positive dep growth this year. Positive gdp growth this year. Company earnings were looking at 8 to 10 growth this year. That is down a little bit from where it was the beginning of the year. That was mainly to do with overseas currencies having an impact on earnings. Profit growth comes mainly from cost cuts or are they selling more because the consumers are getting more confident . Its both. Were still getting the cost cuts, but i think the growth will start to come through because consumer and Business Confidence in europe is picking up nicely. I think it is a lag effect. All of the surveys have been trending up for a while. The earnings have not caught up yet. Its just a lag. I will ask you more about your favorite Industry Groups shortly. Now, here is a look at what else is coming up on on the move. We will head to davos for views from the Worlds Largest 12 wealth manager. Juerg zeltner joins us of his lucidly. Exclusively m s sales pick up as asia slows. Welcome back. Im Francine Lacqua. This is on the move on bloomberg television, radio and streaming on your phone, tablet and bloomberg. Com. This is a stock that is on the move. It is lgmh, one of the Biggest Luxury Companies in the world. Uitton. Louis v is getting 2. 8 . Lvmh reporting after the markec said that fashion sales helps to cushion the decline in sales of alcohol brands. This was affected in china. We will keep on top of that and go through some of the other luxury movers throughout the day. Is the retail revamp at m s working . For an update, lets get straight to our business correspondent, Caroline Hyde. Walk us through the numbers. This is the best in three years, but it started from a low base. You write. If youre looking at clothing, we saw. 6 gain in like for like sales. Mark bolande is going to shout it from rooftops. The money he is throwing into online. Notably getting the likes of thompson,x, emma celebrities to be on their adverts. Clothing, the best we have seen in three years. There are a few buts. 11th quarter were seeing of declines in general merchandise sales. That is clothing and home where despots enhance. That was down homewear, pots and pans were down. Food was brighter as well. Valentines day. A Record Number of dinein meals sold. And mothers day, a record day for chocolates and flowers. We were splurging. Overall, it is still competitive. Were still seeing them saying profitability could be under the gun. We are seeing estimates for a. 2 decline in forecast. We are likely to see a full year don your trip for profitability. Those adverts are starting to bring in the female buyer. The uk seems to be looking brighter, but mark bollande is betting on international growth. Fascinating the amount he is betting on international growth. 250 new stores. Food outlets in paris, trying to woo the parisians. They are going big with food. Expanding with lingerie and standalone bebe stores in the india. Okes of saudi arabia and hes playing to his strengths and rear retaining reorienting himself. The aims are big. Your revenues, your sales by 25 . Up your profit by 40 in three years. Hes betting big on international growth. Staying with retail. One of the biggest retailers in large, but also has a presence in south america south africa and asia, carrefour. It is matching estimates. We have started to see it move in spain. Two straight quarters of growth at the spanish unit. It is important because it is the third biggest unit. Shares are off by. 6 . Sales in the First Quarter down 3. 7 . Europe. France, the home territory, hypermarkets not paying off their. Sales are declining. Italy another key area of concern. Sales not turning around and italy, either. It is all about growth for them and the emerging markets. Latin america, china. With foreign currency being very weak, that is going to impact sales. Not much light at the end of the title for the tunnel for carrefour. Still with us for more investment inside is the head of european equities at old mutual. Kevin, thank you for sticking around. Retail is going to a tough time. We are talking about the subdued growth. Europe still. You like ukdo retailers . Retail is a very stock specific industry. It is difficult to generalize. My portfolio i have all along a strong portfolio in next. It is a great internet offering within continental europe. The only retailer i own is the tonish discounting store, play on the recovery in the domestic economy. Because you have to pick the right stock with the right offering. And he can change six months down the line. Talk about the Industry Groups you like, and we will hone down on the civic stocks. You like hiking stocks. Is that you take advantage of growth . You like banking stocks. It is. What is the best way of playing that . Bank stocks. Loan growth wil; expand as economies expanl. This is before the asset quality review. The banks have cleaned up their act already. The National Governments do not want to see the ecb when it takes over as the regulator and overseeing having to do a lot of activity in their own nation. At the moment, italians are undergoing a big cleanup operation because the bank of italy does not want to be embarrassed when the ecb takes over. Talk to me about your three top picks. In terms of the banking sector, you are playing banco popular. It is a purely Domestic Bank in spain. It will benefit from the recovery that is happening at the moment, which is going through a big inflection. The other good thing about the spanish market is that the inking the Banking Industry is consolidating. So i think the Spanish Banks are in a stronger position because of all of the unprofitable banks have all gone. So business is done in a profitable basis. Opular should be able to gain that kind of return on these it was making precrisis. Interesting. We have seen a lot of investors saying there is a lot of opportunity is banished banks. We will keep it through some of the other stocks we are watching. I want to bring in david tweed, because European Companies are cold and your record levels of European Companies are holding your record levels of cash. Yeah. It is really to do with the Corporate Strategies that are being followed by a lot of Company Since the financial crisis. Using costcutting. They have been reducing investment. They have been increasing dividends. Bloomberg has been crunching some numbers, and the results are i watering because they look at the cash balance of European Companies. And workout that they are sitting on 2 trillion euros of cash. They also dived down into stoxx 600 companies. Let me give you some of the statistics. Stoxx 600 companies are likely to pay dividends of 11 euros a share. That is the most since we got down to 2002. At the same time as they are increasing the dividend, cash flow also is up. Expected to be this year 37. 45 euros a share. That will be the highest since 2011. At the same time, capital expenses going down. 18 euros. That was last years average and the stoxx 600. The lowest since 2008. This is a big concern because when you have got such a fragile recovery, as the one we have in europe, you could see that the discrimination of some European Companies to be investing, holding the recovery back. Yeah, and david, this is what investors want. They are demanding shortterm returns instead of longterm growth gains. Thats always the way the commentary looks like. They say that people are too focused on Quarterly Results and everything, but i came across a letter that larry fink, the sheet executive and chairman of blackrock, one of the biggest fund manager and the world, he sent this to ceos last month. In it he says it concerns us in the wake of the financial crisis that Many Companies have shied away from investing in the future growth of their companies. Too Many Companies have put Capital Expenditure and cut Capital Expenditure and also increased the debt to boost dividends. Hes advising them to look to the longterm. That is what he wants to see is a fund manager. Yankee so much. Our thank you so mcuh. Uch. We were talking about the topics you like. Is there an opportunity for investors to pick an m a stock . Or that too risky . It is a bit risky. You want to invest in a company that has strong underlying fundamentals, strong valuation upside. Not just buying a car because you think it might be taking over. Those kinds of companies have a premium already. It is risky doing that. M a has turned to pick up in europe for the first time in a while. It looks like it is a sign that growth is here to stay. Lets get to another stock you like. This is surprising for me because we focus a lot on luxury companies. Daimler had some great figures. Bmw the same. Renault is a half hybrid company. Think about renault is a friend to mystic rant. That is not the whole as a french domestic brands. They have been growing very strongly with that brand. They are also owning 40 of nissan, which gives them the global brand that will sell into china and the u. S. Market where renault is not present. You have two other brands that are driving grwotowth. The standard brand is starting to come through as well. Uk a couple of days ago, that car sales in march were up 17. 6 . Renault sales up 100 . Nissan up 23 . They do so much for joining us today. Ahead of european equities at old mutual. Coming up on the program, the massive security flaw that left 2 3 of internet servers open to hackers for two years. The latest on the heartbleed bug coming up next. Now it is the internet wide, bug that allows hackers to access encrypted user data. The heartbleed security flaw left 2 3 of users vulnerable. This is the data that you thought was protected is not, and it is all related to a bug related to an open Source Software that basically scrambles your data. So when you are sending a message on your computer about your banking to your bank, as it travels through the network, a scramble so that hackers cannot get into it and analyze your data. It seems there has been a coding problem. For two whole years. It is called heartbleed. It sounds terrifying. But it is the part that is vulnerable in open fsl. It is called a heartbeat. A series of communications sent back and forth in between your devices. That has been open to potential hacking. So says google, and the company in finland. They managed to blow this open. No companies are scrambling to say they are fixing it. Theyre upgrading their licenses. It has not been fixed yet. Do we have a timeline . 2 3 of websites use this particular type of software. We know that google and facebook, they have addressed the problem. They did that before became public. Yahoo got there later. Ames andd leak user naem password. America, we of understand his companies are safe. Change your passwords once you know the website you are using is fixed. Do not have the same password for most of their websites. That is the tip of the day. We are back and if couple of minutes. In the meantime, you can follow us on twitter. Welcome back to on the move. Im Francine Lacqua here at bloombergs European Headquarters in london. Were 30 minutes into the trading day. Lets see how things are shaping up. This is the picture for the markets. We did see quite a big surge yesterday. You can see the ftse, gaining. 7 and the dax. There was disappointing trade data out of china. Caroline hyde is at the touch screen with three stocks to watch. Caroline . Im going on the optimistic side of things and sticking to the gainers. Hays posting very strong increases in net fees. Up 8 in general. Asia a little bit weaker. Europe up 11 . U. K. Up 14 . They say well be at the top end of our profit target. Hays the standout performer today. Lvmh up 3. 8 . Leather good. Trongest sales in two years. Arks spencer, up 2. 4 . Trying the get people to buy the clothing arrangement and getting it more stylish is starting to pay off. Shares 2. 4 . Back to you. Thank you, Caroline Hyde there with the very latest on some of the main stocks were watching today. These are the Bloomberg Top headlines. Chinese trade fell sharply for the month of march. Xports and imports missed. Bloomberg is monitoring prospects for additional stimulus. Speaking of surprise declines, australias Unemployment Rate that sent y in australia to a high. Eir jobless rate fell to 5. 8 . Greece, a sale of fiveyear bonsd could be worth 2 billion euros. Now for an exclusive interview interest u. B. S. Wealth management summit, lets get to manus cranny who was standing by in a very sunny davos. Is it sunny, manus . The sun is just sneaking through just in time for one of our guests, the c. E. O. Of Wealth Management. He joins me now. Great to have you with us this morning on on the move. You travel a great deal. You talk to clients. You the front of this business. What is the Biggest Issue that is coming to forewhen you have those conversations at times . A little bit of how can you help me get access to growth. That is very true all around the globe. For now, with all the uncertainty in the markets, hey think about the markets. Is it a challenge to convince them to participate . Yes, umple. A lot of people unfortunately. Still nearly 30 cash. A