Thank you so much. We will get back to hans in a short while. Bp, good news for bob dudley. Deal where they will be allowed to bid for government contracts in the gulf and in the gulf of mexico. They were banned from doing business. That has been overturned. Litigation continues in terms of the clean water act. News, because it allows bob dudley, this is one hubss four key geographic where he wants to produce oil. For theirry important reputation and business. Very lucrative contracts coming. Lets get to ryan. He is at downing street. He is meeting u. S. Secretary of state john kerry is in london and meeting with his russian counterpart today. Plenty of 11th hour conversations as western leaders tried to convince Vladimir Putin to stand down ahead of the vote on sunday. It kicks off at the british Prime Ministers office. He will be receiving the u. S. Secretary of state any moment now, all of that as violence breaks out in the east of ukraine and Russian Forces amassed just over the border. We will cross over to ryan shortly. Lot on this Market Correction taking further momentum. We are keeping an eye on china. Data andome u. K. Trade the russian Monetary Policy at 9 30. We may see a ratification of that. You merging markets have had their biggest drop this week since june of last year. The u. K. Ista in going to be of importance. Money going into the yen and protection in terms of volatility. Rising by only 9 by over nine percent. People using these stocks to protect themselves against potential moves. We are waiting for that to get underway, john kerry and his russian counterpart, their meeting. Lets have a look at some companies we are keeping an eye on. I mentioned bp at the start of the show. Good news for them. 63 Million Barrels is what they produced from the golf of mexico last year. Bob dudley wants to grow that. About rebuilding their reputation and being allowed to bid for government contracts. Nokia, the news is that they may point do not forget, all equity markets are lower this morning. Monte paschi, the italian news journal saying that jc flowers may be interested in investing in a 20 stake. That is bucking the overall trend. Dominating the agenda. Lets look back at the map. All of these equity markets definitely trending lower. Emerging markets under pressure. Russian markets under pressure. Money going into the yen. Draghi, even the french farm minister the french Prime Minister talking about the euro being too high. The dollar is slightly lower and the yen is slightly higher. Aussie dollar, biggest coal of the morning so far for me. Goldman sachs say that when you have bad news under the hood, it is locked in. . 85. Ack to you manus cranny with the latest on the markets. Joining us for her Investment Strategy is lucy mcdonald, chief Investment Officer at alianza allianzinvestors global investors. Talk to me about some stocks that are in the news today. Bp now being allowed to win some lucrative contracts in the gulf of mexico. Does that mean that you are a little bit more enticed by the stock . Clearly, it is good news. I remember sitting in this very studio in 2010 and talking about the prospects of the company and where they were going to become involved in that at that stage. At that stage, we did not want to become involved because of the potential liability. That andwe can now see value it. It means that they become more investable still. It is clearly good news for them and as investors, it makes it investable. Want tothat mean you own it . If you look at the oil industry group, is that something that you would favor . Are you still cautious on the sector as a whole . We have been relatively cautious. Valuations have become more attractive. In the overall market, when you stand back and you have valuation in favor. Earnings, oil prices have stayed resilient and now you have the situation in ukraine. We do not know what the outcome is going to be. I think you have valuation on one side, earnings and momentum a little bit better. It is more interesting. That, inng back from the longterm, it is not that interesting for investors. There is not much growth and it is more of a capital efficiency story. It is more about income. We have to take a break. Are you looking at the sanctions or analyzing sanctions that we can impose on russia or the asymmetrical sanctions that they ideation ton rich the eu . Indirecte some exposure, but we do not have any direct exposure. We are waiting to see what happens on sunday. Thank you so much for now. Lucy mcdonald stays with us with us and we will talk about china and her other top picks next. Coming up, taking aim at the euro. I am Francine Lacqua in london. This is on the move on bloomberg television, radio, and streaming on your phone, your tablet, and bloomberg. Com. Mario draghi said his Forward Guidance may help weaken the euro. His comments echoed those from last week, when he said a strengthening euro had subdued Consumer Price. Lets bring in our international correspondent, hans nichols. To spoke to Jens Weidmann put what mario draghi said into context. We always need a translator with central bankers on the euro. A week ago, mario draghi and did at this. And did hinted at this. The market did not really get it. Last night, he was more explicit and the market clearly got it read the euro dropped quickly last night. It has not much moved today. The concern is that the euro gets stronger and that puts downward pressure on inflation, meaning the bank may have to act. Here is what he actually said. It will be countered with additional monetary measures. It had a. 4 impact on inflation. Rightnflation is that now, if the euro had to strengthen, it would be at 1. 2 . That is a congregated way of saying that is a complicated way of saying they are concerned about the strength of the euro and what effect it may have on the recovery. It may suggest that they will act on the back of it. Yesterday, you spoke to Jens Weidmann. What did he have to say . His take was more marginal. He says that as the euro continues to increase in strength, it is clear that there is no hard target. As it continues to increase in strength, it is a factor that continues to influence their expectations on inflation. Policy target for us as Monetary Policy makers, but like other variables, our assessment of the economy. In that sense, it affects our projections for inflation and greater growth. This is how we take it into consideration. That is basically Jens Weidmann trying to say yes, we will act if it gets too high. Abouting very careful what the threshold would be. They do not want to get boxed into anything. It is euro is at 1. 45, not necessarily a trigger, but it is influencing their decisions on what they do moving forward. We will have to monitor them very closely. Sometimes the first time central bankers speak, the markets do not always pick up on it. You are absolutely right. Thank you very much. Hans nichols interviewed Jens Weidmann. Great interview. Check it out online. Still with us is lucy macdonald. Thank you for sticking around. We spoke before the break about some of your top picks. Talk to me overall about the european market. Valuations are cheap, and yet we still risk inflation with a high euro. The markets have been doing very well this year on till the next couple that the last couple of weeks. Particularly the dax has been affected by what has been happening in ukraine. Probably what is happening in asia too. The earnings in the region have been affected by a stronger euro. , they were doing good until recently. I think there is still a good potential mediumterm investment andrtunity in europe potentially more so after these setbacks recently. The euro, it is helpful to have that rule of thumb, what the impact of the high euro is on inflation. We should be able to work out at what level they will get concerned, which is not that far away from here, i think. They are watching it carefully. It is not going unobserved. It will be dealt with. In the meantime, it is affecting the earnings in the region. Where do you see the most value . George serous george soros was saying a lot of the banking stocks in europe, it seems like a gamble without asset quality reviews. As it goes through, we will get more insight into those Balance Sheets. Now it is finally happening. That is helpful and that is an area where there is value. They will be revalued upwards as we get more clarity. And we get those Balance Sheets restrengthen. Restrengthened. The area where there has not been value is consumer, exporter areas. I was thinking more of exporters of consumer goods. There was not much value, but you are beginning to see it come in again. That is interesting. Retail everywhere is being affected by structural issues of going online. Unless the retailer has a good online offer, they are not going to get anywhere. There is value, i think, within europe. We are seeing more of it after the last couple of weeks. Many areas of the u. S. And china. You mentioned they are online. It brings us to check to tech and one of the stocks you are picking up is microsoft. A lot of tech is quite hot at the moment. Is prettyobile excessive. Techme of the larger companies, there is still value. Quite a few are similar. Microsoft is one of those. They are very depressed with 12 times earnings. They have a yield of around 3 . It now has a ceo as well who is from inside and knows the company extreme the well. Quite a lot of restructuring has been going on. Within their business, they have a Cloud Business that is growing and have recently won some business on a lot higher multiples. Been understood and reflected in the market valuation yet. That is more interesting than many other areas of the market. Thank you so much for now. Also released its first Earnings Report since going public. The french mobile and Cable Company is also in a bidding battle. Caroline hyde has been digging through the release. What did we learn from their report . Is stillks like it doing what it does best, restructuring assets and making them more profitable. Only sold shares in january. It is founded by the french billionaire. Largely a Cable Company, a few in mobile. It is across france, belgium, portugal, israel, luxembourg. Update aboutt any what new acquisitions they could be making. This is a company largely focused on cable, but looking to expand in mobile. Particularly getting its hands on sfr. It does hint, potentially, in its earnings statement, saying they have all the flexibility they need in terms of capital and balance sheet. Trying to tell investors that they have bearings, but they still have cash to play with. We learned yesterday that the bid was upped for sfr. It now has a value of 15. 5 billion euros. Theproblem for altice is french government seems to prefer their rival to become the owner. Andou combine the second third biggest players, you get far more synergy. Maybe they would be better at supporting the jobs than the wanth leaders, who do not to see any more job losses in france because unemployment is very high. Goutgues 10 maybe buoygues can promise that a little bit more. Movement in french telecoms. Anything you want to pick out . Telecomverall in europe industry looks like it might be ,oming out of the dark ages which has been the last few years because of regulation and the inability to consolidate. There are too many players across europe. It does appear now that the regulators have understood that what they have been doing as far as pushing returns down has actually stopped investment and it has been made clear, when you look at comparisons to the u. S. , that is changing now. That is encouraging her consumers and shareholders because shareholders will benefit as consolidation come through and you get higher returns. You will see exhilarated investment into 4g, in particular. It is all good news and there is going to be a lot of m a. One should really have an involvement. When you look at europe and value, there is still some value in telecoms. Thank you so much for spending time with us today. Lucy macdonald, chief Investment Officer at allianz. For u. S. Mpete contracts again. What this means for one of europes biggest oil companies, coming up next. Welcome back to on the move. I am Francine Lacqua in london. Bp can once again compete for lucrative contracts in the u. S. Regulators have lifted a suspension put in place after the Massive Oil Spill in the gulf of mexico. For more, lets bring in marcus cannon. Marcus cranny. Manus cranny. Now they can understand the potential they can make in terms of money and winning contracts. A manager from one of the biggest funds in the world, the United States, the future. 4 big job areas is the u. S. And the gulf of mexico. They want 300,000 barrels of oil per day. They are at 200,000 right now. They say if they can have a helps. Ike that, then it it is about reputational rebuild. It is about business. They have some chunky contracts with u. S. Departments. They were earning nearly 2. 7 billion. They dropped. They considerably dropped. To be back in the game, they are not a pariah anymore in terms of bidding for contracts. You are back in the game. It is all fairly good news for bob dudley. I have got to keep their house in order. They have an independent monitor. They have got to get it right and deliver in terms health and safety would be the word we use here. Ofterms of rigorous testing what you are doing and how you are doing it. Does that mean all of the legal wrangling is passed . Ier,e still have carl barb the district judge, trying to decide how much oil they are responsible for spilling under the clean water act. Limitations could still be up to 17 million. That spill could be the difference between bp, halli burton, and transocean. There is a considerable financial risk at play. A dollar in charge of or two, if she is saying this is constructive, then that carries across the across. There is still financial viability that is the understatement of 2014. There is still litigation risk here. Thank you so much. Manus cranny on bp. We will cross back to him throughout the day. The world watches as crimea recessionr sundays vote. We will break down the implications. Stay with on the move. We are just getting started. Book him back to on the move. Markets are the doing 30 minutes into the trading day. It is an important market day because of this friday. We have a big correction over the last five days. Here is how they are shaping up today. There is quite a lot of volatility. Seems to be fluctuating. Ibex is down. Chinese estimates yesterday. This is overshadowing the improvements that we have seen in the u. S. Economy. As with the currencies are doing. The eurohe lookout for dollar. Itsend is looking for biggest fiveday game against the dollar. These are the Bloomberg Top headlines. A gauge of Chinese Companies december the 20 of its december hide. Duee are growing concerns to corporate defaults. Most after russias. Indias navy set up a search zone for the missing malaysia airline. Hundreds of miles off the course. This comes as evidence is mounting that the plane may have flown the longer after lost contact. The search area and covers 000 where kalama theres kilometers. In his struggles were just on the currency, he said the Exchange Rates are increasingly relevant in the ecbs assessment of rice stability. He also said that his Forward Guidance may help weaken the euro. He made those comments in a speech in vienna yesterday. We are getting some breaking news in the last couple of minutes. This is in terms of we are the hong kong, authority. This is the regulatory authority, the Monetary Authority. They are finding evidence of ubs exchange. The the Exchange Rate london and then you have them around the world. As is possible market manipulation. We will be following this story very closely. We will also be following the Foreign Exchange probes for hkma. They are finding evidence of misconduct. We will keep track of this breaking news story. In other news, the secretary of state meets his russian counterpart in london today. The west is putting pressure on russia. With thealso meeting u. K. Prime minister. The meeting is taking place at number 10 downing street. Kerry will arrive at any moment. That is right. There are plenty of 11th hour talks planned for today. Western leaders make a lastditch attempt for prudent to stand down in ukraine. This is ahead of the referendum in crimea scheduled for sunday. The first of those talks will take place at 10 downing between the rich Prime Minister and the u. S. Secretary of state. He is scheduled to arrive here any time. The main act is when john kerry meets with his russian counterpart, the foreign minister. Thisll be in london later this morning. This is really interesting. They are meeting in london and not washington or moscow. It is neutral ground up. John kerry refused an invitation from the russian president to meet in moscow. Was not said it convinced the russians were taking the diplomatic solution seriously and did not want to hold talks in that context. The talks will go forward now. We expect the secretary of state to arrive here any time now. What can he accomplish,s . I dont think the referendum will be called off. We can expect him to convince the russians into not annexing crimea immediately afterwards. They can vote to join russia, russia still has to accept them into the russian federation. That is for the things john kerry will be trying to accomplish here today. Tensions continue in the meantime to summer in the ukraine. That is right. Lots of violence last night in the eastern city. This a Big Industrial city. We saw thousands of prorussian and proukrainian protesters clashing. Riot police were called in. One person was killed. That in and of itself is tragic. It is also important to ke