anna: the brexit battle intensifies as the u.k. chancellor george osborne is set to speak at the british chamber of commerce conference. we are there, live. manus: china's ruling party elites prepared to discuss the latest five-year plan, fresh pmi show economic slowdown. crash oneg in a car day after the charge with rigging bids for oil and gas leases. ♪ manus: welcome to countdown.
anna: very warm welcome everybody. 6:00 in the morning here in london. let us talk about the markets, once again, the equity market. we are seeing a trend in asian session, money going into emerging markets and foreign exchange. the biggest three-day rally in asian stocks pacific since august. manus: we have the msci world, and we drew a comparison from that moment -- mid february. a .38% three number of different things going into this, which are the beige book coming out. the job numbers were not bad. inple were batting off this china, because you would get more stimulus. if you look behind the hood here, as in p trimmed losses. and canada, go canada. it is the only developed market that is actually put in a positive return 26 in.
go canada. like and if you technicals, which some people do them a emerging markets reached two technical support levels, onld be for further gains the bloomberg best morning. let us have the radar. we have strengthening in the u.s., something we have talked about in the last few days. that is playing into the u.s. government bond market. we are seeing readjustment there, 1.85% for the 10-year yield. it was 1.65% back in the middle of february. it is shifting, along with expectations about interest rate. $34.79, volatility is easy. that is something to note. the question is, how sustainable is this rally? there is a great technician in save this move, this rally. because he does not believe it is broad enough.
august of last year. you. juliette saly thank a bit of breaking news, the company,dvertising coming a little bit shy of estimates at $234 million. just shy of estimate, taking an impairment charge of 13.9 million euros. they say they can outperform the at market. we will be speaking to the management of decau decauz. joins uscois decaux later. manus: george osborne speaks at a later day, and according to his prepared mark scott u.k. counselor went to the british chamber of commerce that -- anna: britain has not been able to leave and answer the most basic question about how business it would retain access to the single market, and all of the businesses it brings.
even support the idea of a discussion or a referendum. you know, some people thought that business should stay away from it. so, you know, i think if you look carefully at what john longworth is going to say in his speech, he also makes an interesting comment. which is that business leaders need to decide what they want to do, not just on short-term gain, but what they want to do for their children and their grandchildren. there is the suggestion that they should overlook the short-term uncertainty, and that is being caused by the referendum, and look at the broader issues. back to you. anna: ryan chilcote joining us from central london. at the conference to start, and you will be speaking to the director general john longworth. no doubt, ryan will continue to bring him off that fence. picking up brexit, manus? manus: the french economy minister said that france would welcome bankers fleeing london.
ceo of principal global investors. they manage $380 billion in assets. always great to have you in the studio when you're in town. theit, warning about european chamber of commerce. talking about the double in the deep blue sea. kind of baffling, equity markets are in recovery. how do you look at our risk factor on brexit? jim: thinking about brexit, let us try to get some context of the successes and failures of the european union. huge success over decades, the european market. free movement of goods, services, capital. we forget that. but that is the background to a lot of european prosperity over the last 2-3 decades. and indeed, the world's prosperity. the single market is a great success. the eurozone, not so successful. the accord the not so successful. those have been problems.
anna: welcome back. 6:21 in london. more evidence of the china slowdown this morning. composite output index, which covers both the services and manufacturing sectors, fell into contraction last month.
policy, that paints a rather -- i want to be the grinch -- a rather armageddon-like policy. jim: i think what it tells you, manus, those people that said china will own the world were delusional. that is what really tells you. if china can grow for 25, that was the nominal gdp growth in dollar terms, that is about the best measure of current chinese growth that i've seen from official statistics. the 7% that is coming up for real gdp is full of adjustments and it is not very transparent. i think all countries, by the way, are getting in a muddle about the deflationary impact of deflationary technology. that is another subject. but if you look at nominal gdp, you have a much better idea of what is going on in the economy. whether it is a soft or hard landing, i do not know. but they will not own the world. manus: will not be armageddon. jim: it could be.
manus: 6:30 in london great let us get the bloomberg first word news. nejra: more evidence of the china slowdown this morning, as the composite output index which covers both services and manufacturing, fell into contraction last month. inhit 49.4%, down from 50.1% january. ceoe pioneer and chesapeake has died in a car crash in oklahoma city. mcclendon faced accusations that he conspired to keep the price of leasing drilling rights artificially low. police say he drove his car at a high rate of speed and slammed into a bridge.
severalrea has fired short-range projectiles into the sea, as hours after the un security council passed to the toughest sanctions yet on pyongyang. the exports of gold, thanking them, rare earth, and gold, achieve source of currency for kim jong-un. will todayancellor attack the argument of colleagues and his conservative party pushing for britain to leave the european union. thege osborne will urge backing of the merchant, as he speaks along his german council part, wolfgang schaeuble are. . isemy corbyn will begin reform for the banking sector. he told the bcc conference the finance industry must not be an extracted industry that looks at consumers, on, and small businesses as a cash cow.
the republican party establishment is really out is 2012 nominee in a bid to stop donald trump's march on the white house. mitt romney will make the case against the real estate mobile today, after trumps seven-state super tuesday tryon. a source told bloomberg that running is that believe trump is a right person to lead the party. global news 24 hours a day, powered by 2400 journalists around the world. manus: let us bring you a bit of breaking news on the margin in the business -- one of the largest shareholders in the business. part of the news we had but the that bprgin on adidas, estimates out there. they did make a loss in the fourth quarter of 44 million euros. that is obviously from the profit in the year before, but 140 million euros. an operating loss, excluding goodwill and an impairment charge of 7 million euros. we will get more on this adidas story shortly.
good news for the ceo coming in. looks like they have a bit of momentum before it even starts. anna: talking more about consumer spending, are they? andrea: they are. the initial current climate, with the worry of brexit and closing prices could even go up for britain. and it's a pound goes down, it is quite unusual that they are talking about spending. adidas,ou look at nike, tell us what you think. is the challenge coming back, the gulf business i think is also getting better here as well> sorry, the other business. andrea: they are not in a real battle with nike. or under armor. they have to get the brand going in the right direction. this looks like it is -- they have a bit of momentum going in the right direction. they have their collaboration with kanye west. love him or hate him, he is a huge name. around the brand.
good all-around story. i want to get your take. the world has fallen into a real deep concern about growth, about the state of play in the first two months of the year. are your clients coming back from what they're doing on the advertising? you have the real finger on the global economic pulse. give us your take. know, we operate in more than 75 countries around the world. so as you say can we have a very good take on what is going on in the advertising market. and we had a very strong result in 2015. we were up mid-single digits in europe, north america, up high-single digits in the asian pacific. reflecting a very strong resilience of our chinese business. with a very booming e-commerce client category, which is investing heavily in our advertising systems. 2016, we have the best start ever.
about plans around mergers and acquisitions.
writing in the financial times in regards to brexit i want to get your take. obviously, you do business here. you said you are launching a massive campaign here next week. the eu collective energy will be spent on winding existing links, not creating new ones. if britain votes to reject membership of the eu. how will it change your perspective on growing your business here in the united kingdom? what a brexit damage your revenue? would it damage or growth prospects in the u k, your investment in the u.k.? manus, unfortunately, i do have a crystal ball. and i cannot tell you what would be the impact of a brexit on gdp. but the industry is driven by gdp, consumer spending. brexit reduced consumer spending in the u.k., given also the fact that london is also very international, the most international city in the world?
. i like the entrepreneurial spirit of the u.k. i think we need that in europe. i like the fact that it is a more liberal market, in terms of labor, which we clearly need of france. and having lived again in germany for 10 years, now 25 in the u.k., i think we desperately need the anglo-saxon approach to create a better europe. and at the same time, i think that the brexit would probably also fuel some more tensions between northern ireland and where you are coming from, manus. scotland, wales, are likely to vote in favor of remaining in the eu. i think it would be a shame for a great nation like great issues to not have these with parts of -- manus: you are the only ceo that manages to discern the accents. for that, sir, you will get more airtime right here on countdown.
economy. manus: we talked yesterday, some banks are overextended credit conditions in his view. also grading future potential risks in the system. that is a fairly dramatic course, from a very sizable bank. jim: it is. and i think from my observation, i would say he is right on the money there. because the lack of balance in intoy has pushed the banks a nasty squeeze. because it is all being done by monetary policy. and the most optimistic thing i saw the last six months for europe was that when there was that whole slew of bank capital raising for what happened in september, october, november, that get squeezed out however as the markets got worse. and it is the banks but if they get the chance, they should be raising a lot more capital. that is what europe actually needs. , thank youccaughan so much. manus: what else are we going to talk about today?
contained. varying under 3%. anna: let's go through first word news. caroline hyde joins us. caroline: more evidence of the china slowdown. the output index -- manufacturing sector fell last month, it hit 49.9 points. meanwhile, the credit rating has been cut -- the last phone company and its biggest bank. the credit assessor has reduced the outlook on 38 enterprises. cutting 25 insurance financial to negative. energyoneer it just be died in a car crash. it comes a day after he was charged from rigging bids for oil. the company traced accusations that he -- they say he drove his car at the highest rate of speed.
the right person to lead. global knees 24 hours a day, 24ered by 24 how hundred -- hours a day, powered by 2400 journalists. manus: you are set for a higher opening. your markets, juliette is standing by. we are getting comments coming through before this today growth ceremony. it comes from the chinese. juliette, take it away. juliette: did morning, manus and anna. we are seeing risk on in this part of the world. we are about to head into the npc in beijing. negative commentary, saying sluggish economic growth in asia could impact banks in 2016 and moody's cutting the outlook on china. these,look at all of fine. closing high by 4%.
it is now at its highest level since mid-february. sinceghest level december. the nikkei closed higher by 1.3%. the austria -- and then australia had a full session of gains. here in hong kong, there has been a switch out it mainly due to some weakness you can see coming through from a number of these property developers in the casino stocks. the casino stocks have been under pressure. it has been a positive section that's a positive session here at -- positive session. the biggest three-day rally since august of last year. every sector in the black today. we are seeing money going into some of those emerging market currencies. the aussie dollar of course higher. the malaysian ringgit has been a standout. the malaysian ringgit up .8%.
reaction of the shanghai market has been on the upside. manus: the longest rising streak this year. everybody had a bit of a bounce. anthony: that is true. you could argue that the worst numbers as they were empowering the government at the npc this weekend to be a little more aggressive, a little bit more stimulant -- stimulate -- stimulating. every thing we have seen from reforms. the adr includes a positive catalyst. not just monetary stimulus. manus: we have a great graphic for you. emerging-market debt. the gorging of debt. the feast of debt, nevermind the feast of stimulus, the feast of debt for china. the truth of it is the chinese have built an incredible growth story which grew 13% in dollar terms in 2015.
government itself needs to learn to live with that instead of disbelief trying to pretend that it is 15 years ago. anna: where do you see evidence where they are still living that for the story? anthony: there is a fixation on this 7% number. internally. if you compare that with every other major economy, except perhaps india, you're still way above the level of the country. it needs to be allowed to moderate gradually. remember the slowdown is in its third or fourth year did this is not happening overnight. manus: i want to know whether billion markets -- $1.8 and we are only four days into march. i know that is the middle. are you talking about reentering this market? is your cash loan back to e.m.? anthony: we are still positive.
expect to benefit from the project. that is your bloomberg business flash. manus: caroline, thank you very much. business leaders and politicians, the meeting in london. brexit, -- the annual conference.
if you're a business that exports outside of and has the -- then you're not going to sports thing in the eu. that is what those sorts of businesses are telling you. all businesses follow what is rational.
sides of the equation. -- s my job ryan: and your personal view is? john: i am not paid to have a personal view. did -- thelongworth, director general of the british chambers of commerce. will not give us a personal view but says the government could do more. they will campaign on either side of the fence. they will host quite the debate here at their annual meeting. back to you. anna: ryan, thank you very much. ryan chilcote at the bbo see. is it ryan chilcote? anna: let's talk about where markets are going to head. manus: these are the fair values. let's check in here. this is all of the u.s. futures getting back a little bit of value.
♪ >> welcome to on the move. it: 30 and berlin. we're kevin you down to the european open. i am guy johnson. here is what we are both watching the brexit battle. french economy issues the toughest warning yet for the risk of a brexit. -- what is he going to say for himself. asian stocks extend the rally, after better-than-expected u.s. data.