Institutional bonds, everything up for grabs driving optimism. Driving that hunger for risk. That is how stocks are opening higher. We got better and is china. The purchasing Managers Index in terms of manufacturing, not falling as much. It was all about the ecb yesterday. That is what happens to the euro. 1. 113 at the moment versus the dollar. Down almost 2 . So big moves when it comes to currency. Thanks for marriott draghi. Big moves in oil. Sad news on the back of the death of the king of saudi arabia. He lived to a grand old age. How it is trading on the day. Up pops up 2 . Questions about whether his brother will continue with his predecessors policies. Also, will they keep their oil minister . Big questions but oil markets are getting a boost on the back of the saudi arabias king abdullas passing. This is about ecb returning. Borrowing costs driving down. Italy down. 1. 46 italy is looking to borrow on the 10year. Spain able to access the market at 1. 3 . Germany still less than half a percent. Bond markets getting a push high er. A quick look at a few stocks this morning. We have got m a. It is all about telecom. At least they find a buyer for 02. 10. 25 billion pounds. Talk talk had been faulted as potentially what would be bought. Trading higher. Wait for premier foods. Mr. Kipling bisto. Fourth quarter triaailing. Thank you. Breaking news on for france manufacturing and services. The composite drops below 50. 49. 5 on the french composite. Showing the economy is contracting below 53. Three years of no growth. That is a headline in terms of the French Economy still struggling. All part of the reasons as well as the deflation story as to why the European Central bank took such action yesterday. That is how the markets have started the day. Equities are rising. Lets try and make some sense of these markets. He is an advisor at credit suisse. Bob, great to have you here. We have gone to the headlines. 60 billion, 20 year bonds. What stood out for you in the announcement and the News Conference . What do you make of it . The first point is you have to see what did they do relative to expectations. And the fear in the markets two or three days ago that they were going to do something which would be less than expectations. And where the ecb has succeeded and succeeded significantly is they have managed expectations very well. They have come out with a program which is well in excess of expectations. That is why we have had a successful move down in bond yields yesterday and today. And why we have got now 10year italy and 10year spain below 1. 5 . I think theyre going to stay well below 1. 5. And also, although the ecb is very careful about what it says in public, i think in private they are very happy with the devaluation of the euro. Lets not forget that the euro has come down from 1. 40 only last may down to where we are now close to 1. 13. For you as an advisor to an asset manager company, when you hear this block buster headline 60 billion euro rotorazers. It is going to take us a while to find out how much sovereign they are going to buy. And how important is the complexion of what they buy to the market . I am not so concerned about that. We do not have the detail they are concerned about that. Look at the transmission mechanism. Investors such as ourselves now face at least a lot at least six months if not longer,a period of low Government Bond yields. In markets we have negative yield. 20 of european is negative. Core europe out to five years is negative. What is that going to . Do to Investor Intentions it is going to drive people out of Government Bond markets into corporate in higher risk assets. That is exactly what the ecb wants. Logically, that should be a significant stimulus to the eurozone economy. In addition, the eurozone economy has been boosted by a number of other stimuli at the moment. We have the effect of lower energy and commodity prices. That should boost consumption. And the devaluation of the euro should have an effect. Were seeing it in german export data. A significant effect on export growth. What about the banks selling their bonds to the ecb, then they get negative traits when they place their cash . The one weakness in the eurozone economy is the Banking System, because if we go back over the last three to four years, the Banking System is very liquid and demand for credit has remained weak. So what will q. E. Achieve investors moving into riskier assets . Will it succeed and boosting demand for credit . And will it succeed in boosting banks thanksgiving credit . The latest data shows that the Client Bank Credit is now forming a bottom. We are seeing a very modest increase. The next two to three months are going to be critical. Im assuming we will see an uplifted in lending data. But the transmission mechanism between q. E. And the demand for credit is fairly opaque. We will have to leave it there. We, do you think the danes will stand in defense of their peg . I do. The situation for the danish rkkroner is different from the swiss franc. People have the habit speculating are just wrong. In the case of the swiss franc lets not forget that we have a current account surplus of 12 of swiss gdp. Therefore, one had to challenge the swiss maintaining that peg mediumterm. The danes are in a very different position. Thank you for all of your take on all things q. E. And we are going to take a quick break, but some news out of sony. The company will delay the release of thirdquarter earnings as a results of the hack attack. We are going to bring you uptodate as we learn more on that. Up next, we will add to out to davos. We will speak to unicredit. A take on q. E. What it means and when we come back. Now also coming up on bloomberg a little bit later, do not miss our interview with the bank of japan governor. Thank you. Im pleased to say i am joined by the ceo of unicredit. Thank you so much for joining us. Braving the weather. In terms of your focus, the banks are going through a period of adjustment in europe. What you make of what the ecb announced yesterday . Does it change radically the way that investors should perceive hang seng europe . Perceived banks in europe . The price in the market. So sentiment is improving. Business, i do not think it will change dramatically. For banks, it will mean more liquidity. [indiscernible] customers will benefit in terms of the exchange rate. Eurodollar. The so be translated immediately and the real economy. What is missed is the e. U. Actions. But overall, it was expected. And left some positive effects longterm. How much of it was priced into the shares . It had an impact on the euro. Most was already price because the market was expecting such a move. We have some benefit as well in terms of pricing, but i do not think it will change to radically. Give me a sense of what your biggest concern for this year was. It is quite difficult for the transmission mechanism to be clean. If we look at the other side because the regulators and what theyre asking. Europe i would say three major concerns. One is regulation. Still, the environment is not fixed yet. We have a big discussion about [indiscernible] you know the story about russia and ukraine. The Mediterranean Region in general. Finally, for banks, margins. Compensates i would say by an increase of commission that comes mostly from an increase of trade business, exports. And asset management. Would be quite demanding in 2015. And you think the transmission mechanism is going to be alleviated a bit . We are more positive. 15 versus 14. They have an objective reason to think the economy will benefit from prices going down. The euro level rates are good for companies and less for banks. Weve seen that some countries some reforms coming such as labor reform. Im more positive in 15 versus 14. Buti know it will continue to be a difficult year. Gradually the growth will come back. You also mentioned geopolitical concerns regarding the ukraine. What is your outlook for russian, given the price in oil and the weakness of the ruble . I think 1. 15, the oil price will not change too much. It is difficult to say 75 to euro 60 80. But it will continue to be weak. Gdp will suffer. 4 . [indiscernible] our business in russia so far keeps going quite well. We enjoy some business coming to us. Froma multinationals. But russia is putting some . Question marks. In general, you expect more consolidation. I was going to ask the effect of the rents he reform the renzi reform. How much that will change the perception of the country . This reform was waiting for the last 20 years. I think the Banking Sector in italy has two main challenges. One was governance. The governance in this bank was not aligned with expectations of the market. Its opened up the market. And potential consolidation looking forward. The second big task is mps. The stock is quite big. Also, this topic has to be addressed hypothetically. [indiscernible] the market will become attractive for investor. What is the question that you get asked the most . You are italys biggest bank. To people want to know about reforms in italy or about banks . We see more questions about italy. This is good. A lot of curiosity about italy. Venti is known but not that much yet. Political believe that italy a Prime Minister keeps talk about reform. My view is that the last few months, the speed of change, is accelerating. This is have to be is has to be perceived in the market. Do believe there is still a italian discount . If you had the same business, if your bank is headquartered somewhere else . Still there. We have to be honest with ourselves. We as a country have lost some credibility. We have lost time, in the market has discounted this in multiples of our business banks and industry and credibility and trust, etc. It is not the end of the story. We can catch up but we need to move with determination. And when you look at the rest of the year this is almost a philosophical question but last year was maybe the year of the central bankers. If you look at business, politicians, regulators, 2015 is the year of who . Is the year for brave entrepreneurs. Because i see a lot of potential. [indiscernible] for example, we decided to burn september 7. 8 billion euro from the ecb. We are very much ahead of expectations. We are thinking to use the money within june or july of this year to complete the disbursement by the end of february. All this money goes for investment and medium turn lending. This is good. Entrepreneurs to start to believe it is time to invest. Government is on the other side. Investment in infrastructure. We cannot waste time in talking. Thank you so much for answering those questions. Very interesting. You also have your eye on technology. We will have to get you back on to talk about that. The seal of unicredit. We will speak to the bank of japan governor the ceo of unicredit. You do not want to miss that interview. We will give you back in a couple minutes. Welcome back to on the move. The ecb. Lets put it in context. The dramatic decision. They decided to go with quantitative easing. 60 billion euros. It sent stocks up across europe except for swiss stocks. Lets go to our man on the ground whos been doing research in terms of what everyone is payings. Everyone things. It is jonathan ferro. The power brokers that are there in davos what has been the reaction any assessment of what draghi did . The markets have moved. It was well flagged, but it was a really good job by the ecb. Tehey laked a number they leaked a number of 50 billion. Then they beat expectations. The consensus in daovos is that this was a big delivery from mario draghi. You talk at the big names and the view is that this was necessary but not sufficient. John dawson foreign said exactly that. This is what we are hearing over again and again. I think is welcome action from the European Central bank but action from a central bank is necessary but not sufficient for a european recovery. We want to see this accompanied by a clear plan to make the european continent more competitive. To create jobs. To make sure our Public Finance is in order. We have all those ingredients in the u. K. , and that is why our economic plan is delivering strong economic recovery. We want to see all those ingredients in place on the european continent so the whole of europe recovers. We have got the monetary policy. He delivered it. It has taken years. Now a new the Structural Reforms the magic word reforms. The view out here is that this buys time. But they have made a commitment a 60 billion a month. We were talking to the Italian Central Bank governor and he intimated that that is an openended program. We have a mandate. We will pump the money until we hit it. Jon, good work on the ground in davos. I am tweeting out these pictures of you in, what are they braseries . Wheres your google glass . I cannot stand the google glass. I cannot stand the google. They are back at the hotel. Im home on monday. Have a great day. Our davos virgin. Coming up, we will speak to the ceo of Cisco Systems and the governor of japans central bank. You do not want to miss these interviews. They are going to shank what shake what you think are John Chambers is coming up. Kauruda also coming up. What next for the bank . Lets check in on equity markets. Day seven of equity markets rising. The eurodollar at an 11 year low. Opaat an. 60 billion euros worth of quantitative easing to come. The euro is trading lower. We have not seen at this low. 2003. For the euro against the dollar. We are trading at 1. 1348. Join me on twitter. manus cranny. Welcome back. This is on the move. I manus cranny. 30 minutes into the trading day, equity markets are rising again. Day seven of equity markets on the march. The dax is the real leader here at 1. 6 . Qe, the announcement yesterday afternoon, all doing very nice. Ive got a telecom for you. M a as well. 02 will be snapped up by hutchison. They are in talks to buy it for 10. 2 5 billion pounds. Getting that off its chest as it cashes in on that particular asset. The m a doesnt stop there. The telecom furor extends its tentacles to south america. Altice is topping the leaderboard. The French Company owns the cable company. This is a Company Getting its hands on portuguese assets owned by oi in brazil. Telecom shareholders have said, yes, Portugal Telecom is allowed to be sold by oi to alticve. Altice is getting its hands on portuguese assets today. That means theres more money to be spent in brazil. Thats why Telecom Italia is moving higher. Oi manages to get rid of its portuguese assets and has cashed a splash in the brazilian market. What can it buy . [indiscernible] i apologize for my pronunciation. It is a key player in brazil and it is owned by Telecom Italia. A lot of wheeling and dealing. Brazilian m a in telecom is helping telefonica. Altice getting a boost as it gets its hands on some portuguese assets and telefonica cashing in on the u. K. Back to you. Ok, from Telecom Stocks to our top stories at bloomberg. Saudi Arabias King Abdullah has died. He was 90 and had been suffering from pneumonia. His halfbrother salman will succeed him on the throne of the Worlds Biggest Oil exporter. Oil prices jumped after the announcement of abdullahs death. Chinas manufacturing gauge recovered from january suggesting that stimulus measures have helped stabilize the economy. The preliminary purchasing Managers Index came in at 49. 8, beating analyst estimates. Stocks in hong kong and japan both closed up more than 1 . The crucial election in greece is in its final stretch with new polls indicating the antiausterity syriza is in the lead. The next government will decide on expanding the Bailout Program that expires next month. Voters have been increasingly attracted to syrizas opposition to the bailout. Investors and creditors worry of the implications of its potential victory. Lets focus now back to currencies. Take a look at how the euro is trading. Mario draghis big decision yesterday. We are joined now by senior strategist jeffrey. Right to have you with us. We are looking at the euro, a new 11year low this morning against the dollar. Euroyen again moving. What did you make of the 60 billion euro announcement . 60 billion euros a month surprising to the upside. They were probably expecting slightly below one trillion. It is also the flow coming through. That in itself is probably a surprise. The question is, when, and why is the euro still lower . We are going to be watching the polls closely. Is that going to generate some negative effect . I think the conversation may have to shift toward, is the dollar the driving force here . It probably isnt in a condition to cut rates or think about higher rates or nonnegative rates. Larry summers on our panel yesterday with francine was a little bit vocal in terms of raising rates could be the policy misstep. I was just trying to think, how do you describe the dollar . I was watching it during the press announcement at the highest level since 2003. That would give them a stronger dollar again. That could have implications in terms of the recovery. Thats the case, then we are looking at the wrong central bank. The key decision was the bank of canada. If you look at the feds import measures, we could actually have eurodollar below 1. 10. I think the fed would be ok with it. [indiscernible] he supports aggressive policy from europe and japan. That is coming from the fed side. What are the three most important currencies . Dollarcanada, dollarmexico, and dollarchina. Dollarcad already well through 1. 20, maybe on its way toward 1. 30. Dollarchina is wavering right now. Lets say we get a negative shock. Then, dollarmex goes through 14 15 or 3. 17, 18. Then, the fed has a problem. Dont really think the ecb matters. The surprise decision for them was the bank of canada. The largest bilateral trade relationship in the world. To me, that shows a central bank thats actually very aggressive and will fight. What does it mean for the other commodities . If canada cuts off new zealand, do you think they will go next as well . The Immediate Reaction was will australia and new zeala