See a little bit of a job on the open drop on the open. The Inflation Report could give mark carney the opportunity to reinforce the view that we will have no rate hikes until the end of the year. Time is ticking on the deal. Playtle bit of a defensive on the map. Germany expecting a drop for the seventh straight month. Same. Yellen will be the will be the same. She talks about accommodative monetary policy. When it comes to the rest of the individual stories, a couple of talks that stand out stocks that stand out. America mobile ads to their holding in telecom austria. Stocks down a third of one percent. The markets are down. David beckham, did he have the sports affect . Ag, our original guidance on one of our key business areas. We expect a flat revenue. The head of janet yellen and her today testimony, we will go through machinations. You watch the fed as well. The fomc is going to change. The dollar is rising ever so slightly. Equity markets are lower. The debate about valuations and profitability. The doll it the dollar is rising ahead of yellens testimony. Reiterating,ank what an anemic reaction. The momentum in the aussie dollar has been quite strong. You need to understand the impact of where we are. , they think the aussies will cut rates. Thank you very much. Lets bring in andrew wilson, chief executive of Goldman SachsAsset Management for europe, africa. It has to be Janet Yellens speech. Are we expecting any surprises . We are not expecting any surprises. Forecasting as much as the fed themselves are. She will try to adjust those expectations in a similar way that mark carney did. Try to reassure markets that the rate hike is some way off. That will happen sooner than people expect. The Inflation Numbers are not going up sharply. If we measure cpi, ppi, all of those things taking up a little bit. Yellenproblem is, janet is calling that noise. When you see inflation steadily moving higher, it is still at very benign levels. I understand the aspect of it. Look what has happened to the labor market. Wages are lagging indicator. At some point, they will start to move higher. Introducing a little bit of hawkishness, she might, but should she . We certainly think she should. The economy is well above three percent. If we continue to see payroll 270,000, if we have two or three months of that, perhaps the Unemployment Rate is below six percent. Sheot a subtle hint could be quite scared that we get round two. Yields are only 2. 5 on 10 years. We are much closer to the end of tapering. Very explicit at the fomc that they will finish in october. We might see the start of the exit strategy. Moreuld be they will talk about the next phase our view would be they will talk about the next phase. Talk to me about how this plays out in the treasury market. Out for thes play back half of this year . We think the yield will get to three percent. It will depend on the data. ,f we see that payroll growth all of those things point to much higher 10 year yields. Very quickly, if we get the tightening in the treasury market, does that mean tightening for the Federal Reserve . 50 basis points is not very much. It is not enough to derail the economy. Wilson, stay with us. Well be back in about two minutes time. Airbus grabbed the early lead over boeing. We are live at the worlds biggest air show. Microsoft reboots, the biggest job cuts in five years. David cameron cabinet reshuffle. William hague is out as the foreign secretary. Stay with us. We are on the move. Welcome back to on the move. Streaming live on your phone, apple tv, we are on absolutely everything. 13. 8 . E down we were expecting a big job. They may have missed a couple of larger deals. That is according to commerce bank. It is because they have adjusted their outlook that you are seeing a strong drop on the stock. Briceaders of the five s, they are showcasing a new Currency Reserve Fund and the Development Bank as they meet in brazil. What the leaders want at this summit is a little bit more of a say in how the world is round. We normally hear about this in terms of the un security council. Russia and china will say the only reason things are not worsen the world is because they are there to counter the u. S. s view. They want more change at the world bank, the imf. The russian president gave an interview late yesterday. Place wherewant a countries being punished because they do not agree with the u. S. Foreignpolicy can come together and push back. That is sort of what he is seeking specifically right now with his problems with ukraine. He thanked the other leaders for their support on ukraine. None of those countries voted to punish russia for annexing crimea. It is not just the imf and the world bank, but the ebrd were russia has a vote, but not much of one. A possible new round of sanctions in russia is halting ebrd financing. The russians will tell you that is because of the u. S. And its allies. The russians would argue the only reason ukraine is getting imf funding is because ukraine. S allied with the west they will never have the money to return to the imf. This is about geopolitics. Trying to balance and level the playing field. What are the leaders going to do . Does it matter . They have 100 billion Currency Reserve Fund. The second thing, 50 billion Development Bank. Two percent of the collective reserves of the five countries. Says they should be able to lend about 3. 5 billion per year every year in a decades time. The world bank is set to lend 60 billion. The reality is, these countries are much less powerful and less dynamic than they were seven or eight years ago. The average growth right now amongst the countries is about 5. 25 . Half of where it was when jim oneill was talking about the term back in 2001. The reality is, the South Africans would have loved to fund thethe currency last time the fed suggested they would change their ways and change the tide. They will not be able to do a whole lot to quickly. This is about the beginning of trying to chain smoke the big multilateral institutions. Change some of the big multilateral institutions. Andrew wilson as chief executive of Goldman SachsAsset Management. The u. K. Is punching above its weight . Inflation is around 1. 5 . Not much pressure on the bank of england to do anything. That is the contrast. Inflation is relatively subdued. Think delivering the message, the markets for not taking enough notice of substantial risks, that was a clear sign. The markets have listened to that. Likely to see some gradual tightening through 2015. Not dramatic tightening. Those pressures are remaining pretty low. We are still talking about mark carney. He is cold on a rate hike one minute and hot on it next. Did he do the right thing . The job is to remind people of the risks. Some reminder that rates can go up as well as come down makes perfect sense. U. K. Is growing the strongest of the major economies. The eurozone would love a little bit of growth. Im sure mario draghi would like mark carneys job. How do you see things saying out . He was talking yesterday and said those new targeted longterm operations will be used. Bank have to look at the balance sheet. It has been shrinking. 600 billion paid back. The issue of whether it will work or not the question the economy is growing at about one percent. They would love to have that growth. More optimistic that the money would be used in investment. One percent growth rate is not as clear to us. There have to be pockets of companies not getting access to finance and this will do a good job of that. Smalltargeted, just a companies. It is likely will see a reasonable pick up. Issue. Supply and demand how does this shape your views on peripheral bonds . How does this play out over the next year or so . Big improvements in the positions. Budget some of that compression is a reflection of fundamentals. This continued Liquidity Provision provides support. We are constructive on the periphery. We still have low inflation rates across the eurozone, this inflation. 2. 9 , it looks attractive when you compare it to the u. S. Or japan. Andrew wilson, we have to leave it there. Thank you very much for joining us. Dosext, the airshow gets a of heavy metal. Not your average interview. Welcome back to on the move. Novartis has parted with google partnered with google to develop smart contact lenses. It would have noninvasive sensors. They will license the tech from google. It could help diabetics monitor their disease. So last century. Carlos slim will pay a billion dollars to boost its share in telecom. Samsung and bmw agreed to expand supply deal to make factories for the electronic vehicles. The deal is worth multibillion of euros. It seeks a larger share of the growing demand. Get ready for this. A notion of heavy metal. It may seem contradictory a first. The law of gravity savers lightweight metals. Anna edwards joins us. Thank you very much. There are things that are quite surprising. More small and mediumsize businesses are there as well as the big names. Those Small Businesses are showcasing their wares. A lot of conversation about around innovation aviation. Bruce dickinson joins us now. Thank you for coming to talk to us. You are holding something. I am holding it very carefully. This is a fantastic piece of british technology. It looks like an oldfashioned airship. For those of you of a certain age, you remember thunderbirds and the international rescue. It took off and landed vertically and took a great big heavy caterpillar or whatever it was and supplied emergency superefficient because it is a hybrid. We is lighter than air technology to offset the basic weight of the entire vehicle. It has four engines, a payload of 50 tons. 20 ofburning less than the emissions of that aircraft. It could carry people as well. I was the primary investor in this years ago in what started off as a dream in a little shed in bedford ended up being a 500 Million Program for the u. S. Military. They saw the potential of this as a surveillance aircraft. Foree the potential as remote areas, it will take over landing. A fine example of some of the new technology on display. He just finished a twoyear to ur. I am performing at the airshow. I am flying the clips jet, the most eclipse jet, the most ecoefficient business jet in the world. Whistling a happy tune. We look forward to the rest of the displays. Entrepreneur. A brilliant interview. Do not miss the conversation with airbus chief operating officer. Welcome back to on the move this is how european markets are shaping up. Ready much, they are flat. On the surface, things could look boring, but it is much more exciting than that. Janet yellen little bit later. If you have been to germany, you begin to understand. ,ne of the business divisions it will see a flat earning regime. Back in portugal again. May call in a loan that spiritual espirito. Did, back its regular series of defaults. Were back in portugal. The stock was down 10 at one juncture. Reiterating they are back on track. They say cash flow is going to be there by 2016. Jpmorgan is overweight on the stock this morning. Stepping away from nonprofitable models and they raise the price check it up to 14 euros from 13. A little bit of a different story. I will bring you bloomberg ca top headline. Mario draghi dismissed rumors that he is planning to step down. Ecb and i will stay in the ecb and all of the rumors to the contrary are coming from interested parties, perhaps are unfounded. Message, loud and clear, you are going nowhere. The Israeli Cabinet has accepted a ceasefire proposed by egypt. The agreement went into effect in 9 00 local time. The decision came after israel issued orders to 38,000 reservists for a possible ground invasion. Government said russian government Russian Forces may have shot down one of the airplanes. The Ukrainian Defense minister said the plane was shot down. He was also allegedly hit front out as youd that showed it cannot reach. Davidiam hague cameron shakes up his camera and cabinet. He is seeking to promote women and new faces in his party. Looks like window dressing. Sort of window dressing. If you look at the timing, it is interesting. When you talk to political observers, the idea is to refresh the cabinet and put younger people into government, more women into government, and have this generational switch. You have william hague, ken clark is 74. People let go were told inside the house of commons in the prime ministers office. The interesting thing will be today. Late yesterday, we got the announcement. Today, we are expecting to see some new faces. Ofoccupies the attention voters as they watch the newscast today. William hague many people expected him to step down. Hammond will take the job. He is a bit of a trusted hand for the prime minister. Not the most charismatic observer, but could get the job done. This is about the election and the possible referendum, a bit of a eurosceptic. Minister outy there who has gone on the record ining he will vote against that referendum if there is one. Bit aboutlittle windowdressing, but also the government of David Cameron more of thepeal to backbone of the tories. Another issue facing David Cameron is the scottish referendum. Once the border is the president of catalonia. I wonder why. Preference as a if thatld be useful for would be catalonia. We would see the development of the negotiations between the british authorities with the european institutions. In order to keep scotland within the european union. An exclusive interview with bloomberg, the parallels between what is going on in spain similar to what is happening in the u. K. Citi confirms a settlement with the u. S. We have jpmorgan and then Goldman Sachs as well. Will break down the banks, next. Welcome back. In 20 minutes time, you will get the pulse. You have airbus chief operating officer. And then you will have david joyce. Draghisissect mario recent comments. Do not miss that one. All of that coming up at the top of the hour. And citigroup banks and citigroup, they agreed to pay 7 billion to resolve claims it misled investors about the quality of Mortgage Backed bonds sold before the financial crisis. Eric holder yesterday the banks misconduct was egregious. The bank has admitted to its misdeeds in great detail. It jet or lives and livelihoods it shattered lives and livelihoods in the country and around the world. It took a 3. 7 billion charge in the Second Quarter to cover the cost of the settlement. It is not exclusively focused on punishing bad behavior. Explains the question. Consumernefits from relief . Citigroup has agreed to pay 7 billion to settle government claims over fraudulent activity. Holder that eric described as egregious. Jpmorgan settled similar allegations with 13 billion. The citigroup find will fund similar efforts. Underwater homeowners will be able to modify their existing loans. Home buyers will be eligible for assistant with down players down payments and closing costs. To keep citigroup borrowers in their homes. S just a year after the deal was struck in 2012, the five banks reported that each enjoyed benefits totaling 80,000. These fines for an attempt to hold institutions accountable. Jpmorgan, Goldman Sachs due to report today. Lets take a deeper look at the banking sector. Welcome to the show. Talk about litigation and big signs. Are we getting closer to the endgame . Settlements are the thing of the day for most banks. They all have similar situations with regards to settlements with the u. S. Government. When you see reports about investigators coming over to london and offering immunity at least that is the report. It is a challenge that all of these banks need to face because the situation with the u. S. Government is that their jurisdiction in regards to fines. We have what is going on with libor and the Commodity Trading scandal. Earnings were. S. Relatively positive. We like to think that weoups settlement would like to see more progress for that. Out the bigtrip find and we just look at trading , big dropoffs in revenue. Are you optimistic because you think wings of the less bad than people are anticipating . The problem with legacy issues if they hang over with regards to their progress on a quarterly basis and an annual basis. It should be seen as a positive. The jpmorgan settlement was significantly larger. Left with u. S. Banks up put u. S. Urope lets banks up against russia. All of them are suffering from the same problems. That is going to affect them across the board. Fixed income, in particular. Means they cannot make as much money from fixed income trading. Takeover a supervisory role. How did this start to play out in earnings . As arnings should be seen forward indicator. Not just what they have done the previous quarter. Expenses does that mean lie in profits . The bay of pigs salaries overall the day of big salaries overall is something that will have to change. Thank you for joining us. Here are some companies on the move. Decline in the number of u. S. Shares traded. According to financial regulators, 197 million shares were traded. Biggest rivalsys all saw gains that week. They were place night as the thecial muscat for 20152016 season. The agreement is worth at least 750 million pounds. Alibaba has teamed up with lions movies stream hollywood and television shows. It will be delivered through a new alibaba set top box. Microsoft is slowing down. It will plans biggest round of job cuts. Our International Correspondent hans nichols joins us from berlin. You a number that it may be north. 5800 jobs. That is how many they cut in 2009. Microsofts of workforce. He had this big mission statement. He talked about the importance of mobile and cloud computing. He has to figure out how to consolidate some of their workforces. 30,000 workers from nokia. 127,000 workers across the globe. Headquarters, most of their workers they could mean fewer jobs and united kingdom. Microsoft is still a very profitable company. It is part of a larger trend. Microsoft still prints money. We will see how much money they printed in the last quarter. How much of this is about absorbing nokia . Some of this is nokia, but it is also about before, microsoft would have planning, testers, and the actual developers. They