Terms of trading. Not too exciting. What is exciting, what is moving is brent, crude oil currently up 0. 7 . Lets have a look at how it has been doing on the week. It has been crescendoing up almost 5 . Iraq is the secondbiggest oil producer to opec. It of course seeing escalating violence. Does that mean there will be disruptions to supply . That is driving crude oil higher. We are also seeing the pound drive higher. Lets have a look on a twoday basis. It spiked higher yesterday, up 0. 8 on the back of what mark carney did born. He said, i could get ahead of you. We could see Interest Rates rise. At the moment, the market sees Interest Rates rising in the u. K. In april. It will be the First Central Bank to raise rates this year. That is what the speculation is. Also, will they really have to turn to Interest Rates . They hope they can turn the dial down on the Housing Market, particularly in london by giving the bank of england control of demand. They can start to limit mortgage lending by the banks. They say interestrate hikes will be the last line of defense. Lets look at how that is affecting the Housing Market. Fallingices currently on the back of potentially a cooling in the Housing Market. All trading lower this morning. Looking at the oil market, bp up 0. 2 as oil prices rise. Air france, you can see airlines dipped lower as people worry about travel. That affects the airline. Point 0. 07 . Thanks. Iraq taking one of its largest cities as opecs second biggest producer calls for u. S. Intervention. Ryan is healed with the details. Good morning. Wti is on its way to its biggest weekly gain since december. It is well over 100 a barrel. Brent, the benchmark for the rest of the world, it is well over 110, up about 4. 5 this week. Not too far off the 116 it reached back in september. The big question is, how much of a threat is the violence we are seeing in the north of the country to iraqs oil supplies . That is a question we put to the Iraqi Oil Minister in vienna at opec. He says, not a very big one at all. Have a listen. There is no threat. All our production and export is from the south. The south area is very safe. Only small activities related to the distribution. Those comments clearly did not assure investors in oil. Price of oil rising. Some of that has to do with the comment where he says, little activities. The little activities he is referring to is an oil pipeline that goes to the north and out to the Mediterranean Sea that carries oil from northern fields. That pipeline had already been blown up but they were supposed to patch it up. Now that insurgents are in that area, it is anyones guess when they will be able to do that. The majority of the fields are in the south of the country. The majority of oil from iraq flows out of the south. There is at this point no threat whatsoever to those fields. Pressure mounting on president obama. That is correct. The u. S. Is considering action. People talking about the possibility of airstrikes. Obama listen to president yesterday talking about the matter. I dont rule out anything. We do have a stake in making are that these jihadists not getting a permanent foothold in either iraq or syria. The ground,tion on heavy fighting yesterday in tikrit, the hometown of the late saddam hussein. There you had the iraq egovernment taking on the insurgents. Also still under insurgent control, the city of mosul and falluja. That has been under control of insurgents for a couple of weeks now. Is, will thee here insurgents make good on their threat to enter cities like najaf . If they do that or as they have also threatened, try to make a move on baghdad, the capital, you can expect this crisis to get much bigger. Back to you. Thanks. Joining us now to get his perspective is allen, the head of global Asset Allocation at societe generale. Good morning. The big theme for oil markets is clearly what is happening in iraq. Is that going to have an impact on equity markets in the near term . Equities are falling today. In the very near term, one can only listen carefully to what happens. Medium term, we need to know that shale oil and shale gas are gaining momentum in the u. S. Be u. S. There is going to a glut of supply. I dont think we should be overexcited about what is happening. Fairly excitede about equities right now if you look at the stoxx 600. This is the ninth consecutive week of gains. That is the longest winning run in two years. How sustainable is this . We can have continuation for a few quarters. The idea is that Global Growth is gaining momentum. Saying that good growth in the u. K. Will,. Come. Also in the u. S. , you have a very good winter. Can investors withstand a normalization of Interest Rate policy after those comments from carney last night . I think it can. From an Asset Allocation perspective, it is important to say that when you have higher growth expectations, you have lower expected returns. In between, you have policy tightening. Stay there, we will have more on your thoughts in just a moment. All the news coming up here on the move. Stay with us. Welcome back. This is on the move. We are streaming online, on your phone, apple tv and amazon fire tv. Still with us for his views on the market, the head of strategy at socgen. You released this fascinating report and the report is essentially your second edition of your 10 year equity outlook. The first was published in july, 2009. A lot happened in the intervening five years. Indeed. If you look at the messages we send early in 2009, we have during the lehman crisis, we few andwere very the longerterm. You have five years of outstanding growth in the u. S. Expected return must be significantly lower. You looked at the expected returns and you are saying the s p 500 could rise 3 over that 10 year. Msci byx and the roughly 7 . It seems that europe is the place to put your money. Indeed, because you are out of the big problem and the systemic risks we have. You have acceleration of growth will makeeline which an outstanding performance of european assets. What are the headwinds that the u. S. Equity market faces . 3 over 10 years is the s p reaching 2500 versus 1930 right now. There are headwinds arent there . The starting point is a high valuation. You need to have some kind of Monetary Policy tightening. U. K. Central bank will be done by the end of the year. You have margins at an alltime high. If you want to have acceleration of growth, which you are expecting, that is going to be capex driven. Which leads us to the asian equity markets. Reach previous record highs many thought we would never reach again. You are saying at roughly 5 a year for the nikkei, we could reach those previous highs. Indeed, i am quite confident on the japan equity index. Rise. Ve an outstanding you want a change in the structure of capital investment. We need the banks to invest. Thatday, we heard from abe the Corporate Tax rate will come down. That is one element. Are you confident that more measures will be announced . I think we need a policy which is stronger than it is now. You need fiscal policy, the Corporate Tax rate going down is a must for japan. Yen which is the between 100 and 105 against the u. S. Dollar, to go to at least 115. It has been in a narrow trading range for a number of months now. If investors dont believe the bank of japan now needs to add another dose of Monetary Policy. Do you think it will become apparent later this year that they need more Monetary Policy . The wording they are using means that we do not have visibility on what they are doing. If i was to ask you what is the message, there is a very clear message. The message from the Federal Reserve is clear. The message from the ecb is clear. The message from the bank of japan is unclear. The message from the ecb is clear as you say, what is the message from the ecb going to lead to outright bond buying . Bond buying on the scale we have witnessed from the likes of the boj, the Federal Reserve and the bank of england . It is a weapon. , ifecb has already stated necessary, we will do a Bond Buying Program without stabilization. The Balance Sheet of the ecb would rise significantly. F necessary in the meantime, you have u. S. Growth acceleration, u. K. Acceleration, a new grand coalition spending. I dont believe they will have to use it. Alain, good to chat to you. Good luck to france. I think they are playing honduras in the next couple of days. Good luck to france in the world cup. Threatendebt could britains recovery. Rate hikes could come sooner than expected. That is according to mark carney. For more, lets bring in caroline hyde. Rise and byl rates how much . What is the view . Expectations is that we will see a rate rise in april, 2015. Mark carney of course warning that they could come even sooner than that. This is his most hawkish we have ever heard our carney since he has taken over at the bank of england. Tot year, he guided a hike 2016. Now he is saying it could be sooner. There is already great speculation about the exact timing of the first rate hike. This decision is becoming more balanced. It could happen sooner than Financial Markets currently expect. Did he consider it, the npc has no preset course. The ultimate decision will be driven by labor. It is safe to conclude that the scareing scope for capacity and a host of labor market capacity, pricing and wage indicators should be watched closely to determine how that slack is evolving. Interesting. How that slack is evolving. Earlier, we saw that wage growth is way below what the market had expected. It is slower than inflation. Heked me how quickly is once again reiterating that when we do get a rate rise, it will be gradual. He is worried this could destabilize the market, could destabilize the recovery we are seeing. People out there are still having hefty debts. You raise up rates, that could really put a stymie on any Consumer Spending. For the moment, he is wanting it to be the last line of defense. Very clearlyt is controlling the Housing Market. It is. Approvalshe mortgage that we have seen increasing over five years. It has just started to fade a little bit. We had warnings from the imf, from the european commission, saying, please get a grip over the housing prices in the u. K. Some statistics, firsttime buyers currently spend 55 of their earnings on mortgage debt. We have prices eight times average salaries in london. Ats is why George Osborne the same event was really saying, i realized the concern. They are not immediate but it might destabilize in the long term. Does the Housing Market pose an immediate threat to Financial Stability today . No, it does not. In the future, yes it could. Especially if we dont learn the lessons of the past. We act now to ensure ourselves against future problems before they can materialize, because Economic Security comes first. We act now. We, he means the bank of england and the government. Says, you are in charge of demand. You are allowed to suppress mortgage lending. He is giving them legal right to have direct limits to mortgages. Perhaps they could limit them as a portion of your salary. We have already seen lloyds and rbs start to impose that. Impose loans and value caps on as well. Maybe you can only borrow 60 of the value of the house. Bank of england is able to suppress demand. The government is going to tackle supply. They say theyre going to funnel more money into getting sites cleaned up, able to build in more areas of the u. K. And drive up supply. It is going to take time. For the time being, we will see an Interest Rate hike. That is why the pound is reacting so much. Just sticking with central banks, today the bank of japan maintained its record stimulus as it continues to try to boost inflation. Investors have encouraging signs. Japan can weather its april sales tax increase. The governor says he expected the tax hike to receive this summer. At the same time, the rebound in the end threatens to undercut the thanks inflation goal. Are forecasting traditional using this year. Lowda also said he sees risk of the eurozone falling into deflation. Betng up, elon musks bold on an open source business philosophy. We will explain why he is giving away some of his companys most prized intellectual property for free. I asked george if i could have a purple light saber. He said no, they are only blue and red. That was the actor Samuel Jackson speaking to Olivia Sterns about his role in the star wars franchise. We will bring you more of their conversation later. I want to bring you up to speed with some of the companies on the move. Airbus says it will keep an 82 plane order from Kingfisher Airlines on its books while there is still a chance the carrier might find a buyer. Is list price for the pains 6. 8 billion. Airbus suffered its biggest ever order loss this week when emirates scrapped a deal. There are plans to raise as much as 8 Million Euros by selling 30 of its online growth unit. Is fourts enterprise euros a share in the ipo. This is part of the plan to target 2 billion euros of net income. In extended climbed trading overnight. Forecast for secondquarter revenue. The company said tangible sales will increase for the First Time Since 2011 as demand for corporate personal computers picks up. Elon musk has never been one to follow the crowd. He is taking a unique approach to patents. He is giving them away. Hans nichols is in berlin. Explain the reason behind this. What is the reasoning . The reasoning, if you can call it that, is that their goal is to transform the entire automotive industry, not necessarily to chase profit. They need to have 1000 flowers bloom. They are going to make available their some 160 patents. It is a big gamble but elon musk is nothing else if not a gambler. Here is how he put it in a conference call. Fora motors was created the advent of sustainable transportation. If we lay intellectual property landmines to inhibit others, we are acting in a manner contrary to that goal. The plan tesla has to build a giga factory, three different sites, i like his language there. He is talking about landmines. Patentsly has some 160 so it is not like they are samsung. Still it is a different approach. Not a lot of patents, is it . No. Put it in context. Look at what samsung has, 47,000 patents. Apple is around 4700. Microsoft, they are around 20,000 patents. Patentsalking about 160 for tesla. Forward in the 5000 range but not at the samsung level. Thanks, hans. Up, betting on the wearable revolution. I speak to the chief executive about the Bank Accounts around your wrist and u. K. Consumer habits. That is next. Welcome back to on the move. I am mark barton in london. We are 30 minutes into the trading day. Its friday. Lets see how things are shaping up. Stocks are opening a bit lower. It has been a fascinating run of gains for the stoxx 600. It is up for the ninth consecutive week. That is the longest run in almost two years for the benchmark stock index in europe. Declines across the board today. Investors are watching events in iraq. The ftse, 0. 3 lower. The cac, 0. 2 lower. The dax and the ibex in spain also down. These are the Bloomberg Top headlines today. As i said, oil prices are climbing as escalating violence in iraq threatens supplies from opecs secondbiggest producer. Kurdish forces seized control of the city of turco. The violence has increased pressure on president obama to launch airstrikes in support of iraqs army. The bank of japan maintained its record stimulus. Sentimentin consumer and signs of strength in Business Investment indicate that japan is weathering a higher sales tax so far. Most economists forecast the central bank will increase stimulus at some point this year to boost inflation. Staying with central banks, mark carney says risks remain to the u. K. s economic recovery, including the strength of sterling. Speaking in london last night, he addressed the prospect of a rate increase. There was already great speculation about the exact time of the first rate hike. This decision is becoming more balanced. It could happen sooner than Financial Markets currently expect. To be clear, the mpc as no preset course. The ultimate decision will be driven at this point, it is safe to conclude as the mpc has that the remaining scope first Spare Capacity to be used up before tightening. Pricing and wage indicators should be watched closely to determine how that is evolving. On that note, all signs of the economy are pointing to a strengthening recovery. Growth, Consumer Confidence and employment all gaining. Is that translating into Consumer Spending . sr more on the u. K. Consumer new normal, lets talk to barclaycard chief executive, valerie keating. Also, we will talk about this. I dont even wear a watch so you have to persuade someone like me not only to where i watch but also to where what you are what is it . I think this is my color, pink. What is it . We have heard a lot of the latest futures coming out on mobile devices. You also hear a lot about wearable devices. There is a much broader macro trend. Consumers want to make their lives easier. They want all the things they are wearing or carrying to do more for them. The first thing we rolled out was with all the hype you hear about payments, there are few mobile devices that can help you pay when you are in the store. We have these stickers. Andcan put it on any phone it can go through how many are using it . You were the first at the party on many of these things. How many of