Issues a little bit of an for mr. Hollande. But get straight to david tweed. This is going to be disappointing news. Very disappointing news, particularly after we saw the French Economy stalling in the first quarter. It is going to put even more pressure on francois hollande. He is trying to overhaul the economy. He is trying to spur growth. He is trying to bring down the unemployment rate. I will be back in a few minutes to give you the details of why we see this contraction. Ok, david. We will get into that breakdown shortly. To allurn our attention things online and property. Daily mail. Celebrity hunting, house hunting, job hunting, they had assets in it. Sales are up 2 . Profit also up 16 . That is a nice takeaway. They are trying to manipulate their portfolio. They are disposing of the significant chunk of zoopla, the secondbiggest u. K. Property search company. Some say it might be down, but secondly it is online looking at property. Daily mail up 6. 3 . We will talk about that story later on. Euro dollar is down a quarter of one percent. That is a shocker from france on the pmi. Plenty for the ecb to think about. Early this morning, futures were higher with a little optimism in this market. I am in the dark. Hopefully someone will put the lights on and you can see me. Equity markets higher by 0. 2 . The dax up by 0. 3 as well. Chinese pmi still in contraction. Call it a fivemonth high if you are optimistic. Focus,there is only one euro dollar off the back of that pretty bad pmi reading out of france. You did see it did lower. This one here is a threemonth low. Plenty for the ecb to think about. It is italy,t spain, france. Pmi is in contraction territory. The euro does not like it. The market expects the ecb to do something next month. We can all expect what we like. Thank you very much. Joining me now for his perspective, it is james mccormick, the global head of asset allocations. Right to have you with us this morning. Should we be really shocked that purchasing Managers Index in france comes in and underwhelmed the market . Europe is under pressure. I think that we were always going to reach a point sometime this year where the good news finally started to fade. Expectations were so bad a year ago. It is a problem. If you look at european markets in the past, you always had stress coinciding or being proceeded by weakness in growth. It is something to watch out for. I am not surprised that we had some widening and peripheral bonds last week. Your top look through strategies, i am looking at risk number five. Risk of deflation in the eurozone in your perspective is reminiscent of what we had in terms of the data coming from japan. This is everything that mario draghi covered month in, month out. We are not japan. Go, nearly all earlystage drivers of japans deflationary shock are present in the eurozone today. That is right. If you do a like for like comparison, japan versus europe, there is a lot of similarities. Most of the risks around europe on a like for like comparison are smaller. Mario draghi is right. Difference. Been muchicy has tighter in europe than it was in japan during the same time. Europe deflation is part of the solution, at least in some of the countries, places like spain, portugal, greece. Germany is also running inflation close to 1 and that increases the risk. That certainly does. For blood orbaying action from the European Central bank. It is about growth. Getting europe to grow in the periphery is the critical issue. What do they need to do . From an assay kit from an asset allocators point of view, what do you want to see from the ecb . You definitely need looser policy. In 1996, 97, the ecb is beginning to look tight. You need to target policy toward the Banking System in these peripheral countries. We have to see what they are going to deliver. I was having a conversation the other day, the perception of what quantitative easing is and has been versus what perhaps could be capital easing or biting of capital bonds here in europe. It is going to be a different form. It is not going to be qe as we are all wrestling for. It will be a different form. The weight the ecb is looking at it is, qe is the last bullet to spend. They can do it. They will do it if necessary but probably not at that point just yet. We are going to get into some of your big asset allocations. We will talk about that when we come back from the break. Of course we have the china data in a moment. Barclays. Ick from here is a look at what else is coming up today. Hold the sauce. Unilever sheds two big labels. The daily mail owned Property Company has a london listing. With thealk strategy chief executive of the biggest bank in the United Arab Emirates. What is their agenda . We will tell you what that is. Stay with us. We open with chinese purchasing Managers Index. Miners getting some relief. Harris unchanged. The dax rising. I am manus cranny in london and this is on the move streaming online, on your phone, apple tv and the new amazon fire tv. Here is a couple of stocks. We have got daily mail rising about 5. 25 . They announced the muchanticipated cashing in on their property website, zoopla. Looks like they are going to go for an ipo. Racing is set to come. The ua shins are adding up to one billion pounds. They are going to seek to cash in on that. Royal mail, stock declining. In october. Ipo back what we saw was operating profits. So the markets were a little bit disappointed on those numbers. It has had a fairly good run as of late. Those are a couple stocks. We are getting the purchasing Managers Index figures from europe this morning. French manufacturing slowed down at the top of the hour. We are joined by david tweed. You have had a chance to look over these french numbers and go into them in more detail. What is your take away . Is, you haveay another disappointment coming out of france. This is a big economy in europe which continues to disappoint. Looking at the detail here, manufacturing and services both contracted. Both under that important 50 the which indicates difference between expansion and contraction. Economists also saying that new businesses decreased for the second month running. The rate of contraction was the fastest rate since february and , purchasings managers are saying it is lackluster demand conditions. Also, i think this is interesting, delays in decisionmaking. Those could be related. They could be related to concerns about the slowdown taking place in china. Concerns about what the affects are going to be of the ukraine crisis. On the employment front, more bad news. Frances rabbit Sector Employment fell for the seventh successive month in may. Also in services and manufacturing. All in all, this doesnt bode at all well for the second quarter. First quarter gdp in france stalled. This indicates we will see another quarter of stalling gdp, maybe even contraction. Jack kennedy, the economist making the point at the end of this release, the malaysian dashs looks set to any hopes of a recovery taking hold. In an hour, we will get the european the eurozone. I will be back with that. Lets hope those pmis arent as depressing as this one. Mario draghi is focused on the survey data. David, i believe it with you. We will talk more about the numbers throughout the morning. The big viewsfor from barclays, it is jim head ofk, the global asset allocation. Thanks for staying with me. Give us the nuance of what the fed said last night. Talk to me about your perspective on global centralbank policy. Arebank of england thinking about higher rates. The fed are talking about exit. There is a divergence in policy. What does it mean for you . What is the challenge when you talk about it . The interesting perspective is that if you look at macro volatility across the world, it is sitting at multiyear lows. We are at this intersection where we will finally get a Monetary Policy divergence that everyone has been waiting for for a long period of time. Is look at the u. S. , the fed setting the market up to start hiking rates at some point. While the fed says inflation isnt yet a problem, if you look at the numbers, inflation is picking up. Complete opposite issue in the eurozone. By are likely to get an ease them in june. In terms of both Interest Rates and foreign exchange, you have a really interesting environment in the next 6, 12, 18 months. The market doesnt see it. Which brings me to, if the market doesnt see it, how is barclays positioning for it . How should i be thinking about it . Underweight u. S. Equity you say because of the fed policy risk. It is much more natural to think about being long u. S. Equity. When you look at the u. S. Equity market and the u. S. Credit market, these are two markets that have benefited from loss of things. One of those things is very easy Monetary Policy from the fed. You dont see that in asset prices across the globe but you see it in the u. S. I think better growth and the beginning of centralbank policy tightening is probably a mix that will still keep Global Equities doing ok. Just not the u. S. Areot the u. S. You taking your foot slightly off the u. S. Position but you are overweight peripheral equities here in europe. Is that predicated on tightening by the ecb . Is it the big blockbuster headlines that we are all talking about . I think it is a twopart story. If you look at peripheral equity versus peripheral bonds, spreads have collapsed in the last few years. Draghi says whatever it takes an risk premium has fallen. The equity market hasnt done the same thing. It has been waiting. The earnings have been slow to come but it looks like they are trickling in. If you are going to take a positive view on europe, peripheral equity is the place to take it. We have had the chinese purchasing Managers Index. If you look through the headline, it is still contracting. Still a fivemonth high. How do you view china . It is an incredibly important part of our Global Growth jigsaw. Without a doubt. Our view for several months now overweightin start g a merging markets. The market took a very long time in this threeyear adjustment and growth to recognize it. Now i think the market is getting very negative on china just as chinese policymakers are telling you that they need to stabilize the ship. They have eased Monetary Policy. They are talking about speeding up the easing of fiscal policy. You have got this intersection of the market going one way and policymakers going the other. You are starting to see the Growth Numbers improve. Which then takes me to the back of your report which talks about europes exposure. This was a trend last year in equity markets. Nature you have got your exposure to china and emerging markets. Obviously, that theme still carries through to a certain extent. I think that if you look at europe, the one market that has done fantastically well in recent years has been germany. There has been two reasons for it. You have had very easy Monetary Policy. You have had exposure to emerging markets. Thesaw german stocks at start of this year consisted with some of the worries around emerging markets. If emerging markets stabilize, maybe german stocks start to stabilize as well. I think they are overvalued relative to most other european equities. Emergingmarket equities, we talk sometimes about the currencies. The debt, local debt and equities. Your perspective on those Asset Classes where would you want to be . The emergingmarket story to me is a twopart story. The macro isnt as bad as people think. You see that with the improvement in chinas data. The amount of risk premium that has been put back into these markets over the last year has been quite substantial. You are being compensated for the macro risk you are taking. We are going to leave it there. We have cover the world. Right to have you with me. Jim mccormick at barclays, thank you so much. Take a newe parliament. Voting starts in britain today and will continue across europe as eu residents hit the polls for the first time in five years. Hans nichols joins us now to tell us a little bit more. Context for me. I know we have had the indians go to the poll. That is huge. This is the first time in five years that europe speaks. Logistically, india is slightly bigger. This is a massive undertaking. This time is different because voters arent just electing a new parliament, but they are headse to have some of state of each government will be bound. Unclear, onnt is when they select the next Eu Commission president which is where the real power resides. Some challenges that election planners have, they have got to figure out how to get turnout up. Since 1979, it is down almost 20 . That is really their challenge. 751 seats are at stake. I wont ask you if you have already voted because i know they have started in the u. K. And we would be violating some sort of broadcast rules. After the discussion i had yesterday, i have zero comment on that. Thank you for putting that into context for us. Coming up, zooplas ipo. Means fory what it daily mail. Join me for that conversation with caroline hyde. Zoopla, what is it worth . Welcome back. U. K. Media Company Daily mail half of its first results today as well as some key asset disposal news. Crucially, the hotly anticipated sale of zoopla. Here with more on the numbers and the story is caroline hyde. Take me through the numbers. There is a lot of business in this group. You and i are typically house obsessed so lets steer away from that. Youy mail tracks whether are celebrity on thing, job hunting, this is the company that had assets for it. Online, thely mail most popular website. I find that amazing. It is all about pictures isnt it . Lots of gossip. Up 16 . Up, profit cost savings are helping with profit but it is all about property management. This is why they are looking to dispose of job site. They are selling that off to axel springer, the german media company. They are getting money into that. Notably it is all about the initial shares sellers. That is the big one. What is it worth . Take me through some of the big traffic numbers. It isy seven years old, the secondbiggest property website in the u. K. It is prime location, smart new homes. As well as managing thirdparty websites. Worth about one billion pounds according to analysts. The scale of growth for the company, 40 Million People access the website per month. 2 million make inquiries over homes from that. That is quite a good return. The notable thing for daily mail, they own 52. 6 of this. About a half billion pound stake. They are not going to sell it all but they will dispose of some of those shares, as will the founder of zoopla. All these companies are going to be selling some of their shares, june. That is all very clap happy stuff. There is something in me that says they are selling their jobhunting site, cashing in on zoopla, it just has all the hallmarks of cash in and run. Stay with me. I have the United Arab Emirates banking chief after the break. Welcome back to on the move. I am manus cranny at bloombergs European Headquarters in london. 30 minutes into the trading day. Lets give you breaking news here. Beat at 56. 4. S and you factoring comes in lower than the market had anticipated at 52. 9. That is less than the consensus. It is an overall beat for germany. Story toy different what you saw from the french. Fedng equity markets as the says they are in the market for no change in rates for a while. You have just seen spain come back down. Y for get over to jonn a quick reaction. How do you compare germany to france . They have been doing this for the last couple of months. Ecb play this . How much weight does it put on germany . At some point, you have got to look at these growth figures in france, spain, italy. It is dire. You have a pmi contraction in france. That could be fuel on the fire for the ecb to do something about it. I look forward to the breakdown on those issues. Time for the top headlines. Fed officials believe there is no risk of inflation as the central bank continues to unwind its record stimulus program. Minutes from the april meeting show that officials questioned whether there was a tradeoff between lower unemployment and inflation. With both items still below target, officials believe stimulus will improve both goals. Asian stocks rose after a chinese manufacturing gauge rose to a fivemonth high in may. The preliminary pmi reading from hsbc rose to 49. 7 which beat economist estimates. The report feels optimism that chinas economy is stabilizing. Is sending mixed signals about when its troops will withdraw from the ukraine border. President putin said he plans to this weekends president ial election by pulling troops back. However the Defense Ministry says they wont finish withdrawing until a week after the vote. Attention now our to the middle east. One of the biggest lenders is the National Bank of abu dhabi. I have got the privilege of having the ceo with me, alex thursby. Right to have you with me. It is an interesting week. You have come to town. A lot of middle east institutions have come to town. What is that about . Who wants to do business in your region and who in your region wants to come up here . I think the mood is very positive. Stablebi is seen as very place to invest and very well located. It is interesting to note that 30 of gdp above singapore. I think you will see this flow into medical services, construction. It is not just europe. You are seeing a lot of investment from asia and africa. This is very much part of you have a couple of big themes. Corridord about this that runs west to east. As somebody who has been to the middle east, i have gone north to south. This is a very different perspective on where the growth will come from. Think there is to fundamentals behind this. The first is that the growth of the east is pulling both the middle east and africa along. If you look at what each region offers, basically they require each other. It is not a political alliance. It is an economic alliance. That is one key thing. Behind that, the trade flows, the investment flows are all expected to the at doubledigit levels. Where is the big opportunity for you . Ims north africa sorry, west over to east, which part of these businesses are you interested in participating in . The first place is where the large flows are. Our rating allows us to build in the business of banking.