Funds, equity markets open a little bit lower. We have had german confidence numbers, the gfk confidence numbers the highest since 2006. No risers in germany. On the dying side. And moremore defensive cyclical plays coming under a little bit of pressure. Lets check in with the companies we are keeping an eye on over the opening session. We have some headlines in reference. Tdf, where the french government, they are placing about 3 of gdf throughout. They are selling part of their holding there, about 3 so they can fund the purchase of 20 ofalstrom. It is pricing at the bottom of the range, around 20. 20. 18. Pharmaceuticals, what does it take to get a deal done . Hey have been rejected 51 pounds would be the appropriate price to get it done. 3 billion pounds more than currently offered. 4. Re up 1 tesco is going to go to their atm. Your strategy, your stock at a tenyear low. Keeping an eye on currencies. The aussiedollar. The great debate will be whether australia cuts rates or not. A number of us have done a research and it comes out that the Commonwealth BankCredit Suisse says the indication of the odds of a rate cut are turning necessary. Goldman sachs would argue against that. The bank of england is at an unimpressive, or an unreliable boyfriend or flipflopping, saying one thing and doing another. The view from the markets is sell dollarsterling at one dollar 70. It is not my view. Citigroup bosh. Lets get back to the white house plan with written on ukraine and the possible sanctions it could mean for russia. Ryan chilcote has the details. The u. S. Is preparing sanctions that would target the Technology Used in the gas and oil industry. This would effectively be a transfer of Technology Control where the u. S. Government would have the power to review the transfer of that kind of technology on a casebycase basis and if they wanted to disallow it, they could do that. This is something that they are looking at. They have not actually implemented it just yet. Meanwhile, we have u. S. Business groups saying they will put ads in american papers and the new york times, wall street journal, and here in the u. K. Tomorrow arguing against sanctions. It is coming from the National Association of manufacturers, from the American Chamber of commerce saying that more sanctions, more u. S. Sanctions against russia will cause cost american jobs and will lead to those jobs being seated to other countries who are not implement exemptions. What does this mean for its relationship with others in the story . Will we see the u. S. Going it alone on sanctions . Interesting. We were briefed on u. S. Preparations by three Obama Administration officials, two of which say they may go it alone. We know the ee you has a meeting on friday. The Foreign Ministers are meeting today. We just heard from william hayes, the foreign secretary of the night of united kingdom. Why he says the eu peart the u. K. Welcomes boudins words, they want to see action. They want to see them rescind the authorization the use of force in ukraine. He is signaling that he is not overtly planning on using Russian Troops in ukraine. Concerns remain in the western putin isd u. S. That operating stealthily in ukraine by allowing the transfer of weapons along the russianukrainian border, by training separatists. There is going to be a debate. We know Angela Merkel in an interview said she would like to see more sanctions but i think this is one of those cases where you have the u. S. At first. Perhaps we will see some sanctions going into the eu friday meeting and we will have to watch very carefully because as always, it is difficult to get consensus when you have as many as more than two dozen countries in the process but there does appear to be the momentum for at least some kind of action. Thank you. Ryan chilcote on the latest on ukraine and russia. Of capital. Ad thank you for coming in. If Equity Investors were looking for reasons to be nervous about strong runup in equity markets that we have seen over recent years, there are plenty out there, arent there . Geopolitical tensions, whether it is in iraq or in ukraine, they exist. They could be something that the markets worry about and yet the markets are focused on what Central Banks are doing. As a result, many such as yourself are still buying into this equity strategy. Yes. One of the themes markets has been low volatility. If you send a message ecb 47 Straight Days of less than 1 movement in the market. If theyre looking for a world strike in my Company Political events you mentioned. The overriding theme is what Central Banks are saying. They had a bad First Quarter and the u. S. Gdp is probably going to put that into picture once again when we get a number. Bonds ine high yield bond inthe highyield the euro zone is less than the yield you get on the u. S. Euro stoxx 50. Theyre not going they are going to buy into equities. I was looking for a slow melt for the summer . I think so. There is no other trade at the time at the market. We still have to believe in ecb. It has the back of the european market. I think we are hearing from the fed is very positive. Even last night they said that the fair trade height in mid2015 will not be a surprise. My personal view is that Inflation Numbers are catching up even though it is not reported great it is more because the qa numbers are bad so people are forgetting the inflection inflation report. Manish, stay with us. Here is what is coming up on on the move. The u. K. Independence party is coming a Jeanclaude Juncker residential appointment. More on that debate later. Prosecutors say that news corp. Faces possible corporate charges related to phone hacking and bribery. More on those next. I am anna edwards. This is on the move. Investors are digesting comments from japans Prime Minister shinzo abe. In an exclusive interview with bloomberg, he declares an end to the deflation that has crippled japans Economic Growth over the last 15 years. Getting out of the relation has been the great theme of the Abe Administration over the last year and a half. Through bold monetary policy, flexible fiscal policy, and the growth reggie, we have wished a stage where there is no deflation. At the same time, we raise the consumption tax by three Percentage Points to 8 in april to in order to improve. There was no other way to achieve and escape deflation at the same time as restoring Fiscal Health. While overcoming this in april, we wanted to make sure we did not trigger a red light on progress towards overcoming deflation. This was an extremely difficult time for management of the economy. I believe we were somehow able to overcome it. We have set a goal of achieving stable inflation of 2 as soon as possible and we want to achieve Fiscal Health by escaping from deflation and achieving Economic Growth. This week as the administration unveiled the socalled third air of era of and something on tourism. What did you make of the third era . T of thenk i a lo news leaked out and it would that it was not news to us. Tois coming down from 35 30 then it will be a positive. The important thing about the changes on corporate governance. We had the first reforms in the early part of 2000 and that was more than about prioritization. When you talk about employment reforms, these are big reforms that we are talking about to get independent numbers on the board. By way of comparison, they have done equity for Japanese Business stock is 8 compared to the 15 in the u. S. They had eight independent director with corporate governance. I am very positive. And weporate taxes see all these u. S. Companies trying to shop around the world to get lower rates. Lets talk about the u. K. Little bit. We had the Mark Carney Mark Carney testifying yesterday. Did he seem like a dove, a talk . I think he is trying to muddy the water. Yes to run a very straight part because he cannot spook the market. Is he trying to bring volatility back to markets . Probably. Central banks have been the game of inflation. I think that he is trying to muddy the water. This, to about unreliable boyfriend, making the news, but i think people are anxious about that first day and interest rising. The big story is getting into play, which is more important rather than the first instance of red rising. I dont think he is going to risk the growth and probably he will drive very stiff line. We were having a chat about lack of wage growth whether you look at the u. K. Or u. S. We spoke to earlier on who was telling us that part of the problem with Forward Guidance is that they put all the eggs in the basket of the unemployment rate. Unemployment rate came down but wages did not increase. That seems to be persistent. If you look at u. S. Data, the is worth of Household Debt anyone trillion dollars. But you are not seeing a rise in consumption. This is down to a recent survey where they talked about consumers and what would make them consume more. Almost half of them said an increase in wages and 20 said increase in an job prospector it that is two thirds of what would make them consume more. I think that is key about where the Inflation Numbers are going to come from. We look at the number in the u. S. , it is more than the headline in the weekly wage growth and that is more important than anything else. The whole debate around income inequality, wealth inequality has become topical. Corporate earnings in the u. S. And Second Quarter will kick off next month. What you expect do you expect . I think we might have a slight disappointment in the corporate earnings because market expects a lot. We do not know how the next number is owing to come out or what the fed is going to say. I think liquidity will be a slow burn up because that is the only game in town as of now. If i am looking at bond markets, the u. S. Highyield offer better opportunity because the other whenyield has less than 4 the u. S. Highyield is 5. 5 . Thank you very much for joining us today. Manish joining us from cross ridge capital. Faces possible corporate charges related to phone hacking and bribery. This is according to prosecutors during the eightmonth trial that led to the guilty verdict for andy kaufman. He is the former news of the world editor. Here with more is ryan chilcote. Two things that are worth watching out for. One, Rupert Murdoch himself may be interviewed by the police in the u. K. As a suspect. That is according to the guardian. Prosecutors may pursue news corp. Charges against news corp. Itself. That would be a corporate case against news corp. Itself. That revelation is not particularly new. It came out during the eightmonth trial that we had been witnessing that ended yesterday. In the u. K. , they have rules about how to report on trials as to not prejudice the jurors and make sure the defendants get a fair trial. Reporters were actually banned from sharing that with the arrow public because the jurors had not heard it until yesterday. We do know that during the trial , on at least a couple of occasions, prosecutors suggested to the judge that they may pursue news corp. Itself. The jurors decisions were received yesterday. Rebekah brooks not guilty on all counts. Guilty ofn found phone hacking and the jurors are deliberating on the charge of bribery. No word on when they will make up their minds on that. What is the likely outcome would . Outcome of corporate charges . . Have this we conviction of andy colson on the charge of phone hacking, analysts say it is that much more likely that the prosecutors will now pursue a case against news corp. Itself. That of course is up to the prosecutors. What we do know, and this is getting ahead of ourselves, is if there is a successful prosecution of news corp. , and we are not even there yet. The prosecutors have not initiated that case, that could going tohe prosecutors the board of news corp. , the socalled controlling officers that would have been in charge of the kind of wrongdoing that ,ook place at the u. K. Tabloid that those people are pursued. That is where this might be going. News corp. Has said we recognize that there has been long doing wrongdoing. We have been cooperating with the police. We have paid compensation to the victims and we have changed our business to make sure that things like that do not happen again. Anna . Ryan chilcote with the latest on news corp. Coming up, if you are in the u. K. You should note that we will bring you Prime Ministers questions from Parliament Later on today. He is said to be grilled over his former meteor Media Advisor andy colson after the hacking scandal. That is at noon in london. Ceost, speaking out on skyrocketing compensation. Welcome back to and add welcome back to on the move. I am anna edwards. They may have to raise their bid about 30 billion pounds to 30 Million Pounds to get shire. Was rejected on previous attempts to take over the dublinbased drug company. It is part of a government plan to raise funds to purchase a stake inalstrom. With themiliar offering say it is priced at the bottom of guidance at over 20,000 share. Haveche bank is said to lost about 26 junior bakers in Hong Kong Open left four months. That is the largest number of the partners in asia for five years. Management chain has been shrinking. It is atm season and shareholders focus on executive pay at some of the biggest coveneys. Tesco faces shareholder results. Joining us to put this into context is gregory elders. Kick things off with wpp and why the big concern over the pay packet . Last year he was up 70 from the year before to 30 million euros. It is the third year in a row we have had the highest pay among ftse 100 countries. Two years ago, shareholders voted it down as part of the shareholder uprising. There is continued concern. There was reform but the thing that is happening now is an additional votes on forward a policy pay policy. Shareholders will get to vote on his potential annual bonus of four times they salary and at longterm, 10 times they celebrated what they are paying out a deal that was five years. Could we see shareholders objecting years into the future . Laster it was only 20 of shareholders who voted against it. It was only 20 of shareholders voted against it. They need to let the company know that they expect returns to you mentioned the shareholder spring two years ago. What have the impacts of that been . We have seen changing regulation in the u. K. One of the big things that change is that companies have to have fuller pay policies. What we have seen is that no companies have been voted down. Either on their pay report or the lower pay policy. It is having an impact on ceo pay. We have seen in the u. S. And australia that shareholders have been more active as a result. Packages are coming down. Were you have shareholders less than 90 approval, on average pay packages come down. These are now not just advisory votes by shareholders . Exactly. The pay all as he is a mandatory. It shareholders voted down, the company has to do something. Way from the banking sector, this is a topical story. We have seen issues around other big banks and now rpx is in focus. It is a different case there. Majority owned by the u. K. Government since the bailout and the government said a few months ago they would not support raising the bank or bonus caps. From one time base pay. Revolts at barclays earlier this year as well as hb hsbc. Shareholders were unhappy. A thought of wanted to make sure banker pay is not out of line. Quite an active it activist shareholder. Thank you for that conversation. Coming up on the program, the younger debate juncker debate rages on. In the meantime, you can follow me on twitter. It is 8 26 year in london. We will be back after a short break. We will give you a quick picture of the markets as we go to break. Things will be weaker. Some of the geopolitical tension we have been talking about over the last couple of days. Taking a toll on the market. We will be back. Welcome back to on the move. I am anna edwards. We are 30 minutes into the trading day. Lets see how things are shaking up in the equity markets. Things looking weaker this morning. That slow melt of equities we heard referred to at the beginning of the program. Manus cranny is at the touch screen with three stocks to watch rate of lets check in on some of the big movers. This is the French Energy company where the government has 3 eady begun to try to sell of their stake in gbs because they want to get funded to buy alstrom. The pricing is at the lower end of the target range. Great measureso of cement and aggregates come up what else can you talk about . We have a dime great coming through on Market Performance synectics. Ynnex x if you want to understand what on a small effect company, they make oil and gas products. The waiting and seeing gain in iraq, waiting for three or four major contracts, is going to hit the tune of 7ts to b Million Pounds for a great representation of the reality of the impasse in iraq. Back to you. These are headlines this hour. The u. S. Is said to be preparing sanctions aimed at specific areas of the russian economy, including energy and technology. People familiar with the lurches safety eu may not agree to this next phase of sanctions. Two of the largest u. S. Business groups are preparing to break ranks with the Obama Administration over further penalties on russia, citing potential damage to u. S. Companies. Ukraines president is calling for immediate talks with leaders of russia, germany, and france after prorussian rebels shot