A warm welcome to everybody. Let us give back to the top story nato is preparing a Rapid Reaction strike force that could be deployed to Eastern Europe at a moments notice in direct response to russias behavior towards ukraine. Our International Correspondent joins us from berlin. How big and how fast will this strikeforce be . Good morning to you. Good morning. The minute was talking about a strikeforce of 4000 troops that can arrived anywhere and deployed anywhere within 48 hours. We are talking land, sea, and special forces. To whatdirect response nato is increasingly calling aggression by russia. The nato secretarygeneral talks about nato not being naive. You to strengthen the collective defenses of the 28 member countries within nato. Thatne is not in nato and may be a topic of conversation at the summit in wales. One important thing is this plenty to be ratified by leaders but all indications are it will be ratified. This comes as the situation in is clearly escalating. Not just in the southeast part of the country, but also north. It appears Russian Forces are making inroads and that is where Ukrainian Government forces have been getting close to taking the city. One final note Ukrainian Foreign minister increasing his rhetoric. He says with the beginning of a land war in europe, the likes of which we have not seen since world war ii. Anna . What stancel on this . He is saying aggression needs to be met with a Firm Response even if there is economic consequences. This is quite crucial. Being ableking about to change borders in europe without consequences and attacking other countries with troops is in my view, far greaterdan danger. Eu officials will be meeting in brussels tomorrow. They may extend sanctions, strengthen them. What they are talking about his Financial Instruments of more than 30 days from russia. As would be to buy sovereign debt. Currently, it is at a 90 day limit. They may move it to 90 days. Tomorrow in meeting brussels law nato per tears prepares the military response in wales. Present obama is expected to be in estonia today. Tell us about what he is doing their ahead of the real nato conversations that take place in wales later this week. Look, this is clearly the president obama can speak Landing Air Force one. Is a clear sign that u. S. And nato will stand with newer members. It is important to note that estonia shares a border with russia so for the baltic states, , these are the kinds of states that could be receiving this Rapid Reaction. 4000 potentially, 5000. It is a way to assure allies and send a very clear message by branding that blending that plane that made it will stand firm and keep the article five commitment. Thank you. There is a management shakeup. The founder taking the helm along with two other executives. The current chief executive the parts and here with Morris Caroline died. Good morning. Hyde. Here is caroline good morning. Is three better than one . It is usually the case that you get one chief executive, not three. This questioning how easy decisionmaking will be with three at the helm. An executive chairman who is the the 79yearold, he will be heading a threepronged leadership team. Coexecutives,wo one of whom is already the chief financial officer. Also, they will hire someone new to be head of markets. This is a company that does rayban, oakley. It has some glasses and glasses for the likes of chanel and prada. They own sunglasses. And huge company which has been doing very well even amidst all this indecision and all these movements we are seeing. Shares fell almost 4 when we found that that particular day. Triumvirate could lead. A with the executive or 10 years. They would do another 10. It is tough to work out how longterm obliteration and this will be because on the one hand, the founders says they would do 10 years under this new arrangement and then they are looking for a new coceo. That could be a new addition. You have one is the second chairman and then you have one of the coceos. They are looking for the other coceo. Who that is and what they want to do with the business might might see how the triumvirate works. What speculation have you seen . It was august 20, shares fell. That is when the media caught on. Within the company, they have known about this basically since july, that is what many of the trade unions have been telling the italian press. You wouldve seen it from the performance of the company which continues to do well. Their last numbers the profit was up 11 . Thirdquarter sales growth will be robust. This is unnerving for investors. But Andrea Guerra did well at the helm for 10 years. He doubled revenues. Hed more than tripled the stock since becoming chief executive in 2004. The amazing story i was looking into the family. Leonardo, 79 years old coming back as executive chairman. He is the wealthiest man in italy. 18 billion to his name. He was put into an orphanage at the age of seven years old and at 14 yearsat group old, he had an apprenticeship at a factory. He founded the company in 1969. He went on to such great things. He will be rewarded generously for all of his efforts. It has been a successful 10 years. Haps, that is why many will not be shocked to know that he is getting 10 Million Euros. As ats 11. 5 Million Euros severance package but he goes away with a lot of money because he has a big stake in terms of shares. 34 Million Euros in terms of shares. Yes 45 Million Euros all in all. I think he can probably take that as a farewell. The company is selling eyewear more than 7000 of its partnerships. 130 countries. It manufactures in italy, china, brazil, the u. S. 77 million frames it made last year. He can buy a few more frames with that 45 Million Euros. I think he can. The owner of the company does not wear glasses. I think you can still well glasses wear glasses for fashion. Thank you. Still to come hursdays ecbf t meet will talk to timing. The european economist after the break. Welcome back. Time for todays company news. President Vladimir Putin has indicated the statecontrolled oil Company Offered a stake in the countrys secondbiggest oil project to china. Rushes turning to china disparate economy has relations sour with the euros with the u. S. And europe. The worlds fourth biggest oil trader plans to expand into shortterm buying and selling of liquefied natural gas, according to people familiar with it. The company may have spot agreements and sell cargoes in asia and around the lander stepping into supplies for australia and southeast asia. Apple and the fbi are investigating reports that hackers used apples icloud service to illegally access the new photos of actress Jennifer Lawrence and other celebrities. It targeted more than 100 american and british celebrities who anonymous image sharing website. Europe yields across has stumbled to record lows. This thursday, the ecb holds its latest Monetary Policy meetings. For more what to expect, phillipe joins us live from paris. Thank you for joining us. Good morning. Realisticallywe expect from the ecb this thursday . I do not think we should expect too much this thursday. There will be a major speech. I think it was a major change in the ecb. They approach the ecb about a policymaking between Monetary Policy and fiscal policy as well as the mix between special policies. His speech was very interesting. He is opening the door for more cooperation between the government and Central Banks in order to put in place better conditions for growth both in the nearterm and longterm. I dont think it means there will be a change very quickly in the ecb policy especially since they have already put in place a significant package is just before the summer and different measures of being implemented gradually between now and the end of the year. I think we should not get too excited about this week even though you will do some position about the way he sees this corporation and the way he can see possibly more ecb action later on. Good morning. In terms of detail, are we going to get more detail on the assetbacked security buying program and what that may look like and a little bit of detail of what qualitative easing may look like in the future as it comes. You are not expecting any rate cuts, are you . I would be very surprised if there were rate cuts. Rates are already at zero, all was a zero. Almost at zero. You cannot argue they can go further into negative territory. That would not be something that would be efficient. It would something be considered targeted territories. In june, the cuts were more symbolic to show what is going on in the ecb. I think we should get more details about the program. The ecb has been working on that over the summer. We know they recently hired consultants to a devise them on that program. We are in a situation where the program is more and more likely. It was a possibility but it is they are about to announce the program. We should know more about maybe the timing, maybe the way they do it. Whether there is already something in the pipeline in terms of using the regulations. We know there is a dialogue between the committee. This is the first set of details i would expect. The other thing i would expect also is maybe more ideas about what next could happen if the ecb were to decide to ease policy further. With there be other right of asset securities . Wouldve day by would they buy that is what i expect. On the coronation side, as you rightly say, he is pushing for this coordination on the monitoring on the fiscal and supplyside. We seem to be getting a divergence of view from the two principles within europe, one from france who says the ecb can go further to weaken the euro. In germany, they say they have reached the end of the road in which the ecb can do to fight inflation. There seems to be a large gap between france and germany. Where will this coordination come from . I think what you hear from them is more or less influenced by domestic politics. I do not think there is really a divergence of views. About whatome views can be done in terms of fiscal policy in the nearterm. View the flexibility should be used because we are in exceptional circumstances. The germans put the focus on really making sure that policy continues to be a rigorous and that the decline in the budget deficit will continue. I think he took the position that is in between. There are some rules in countries. May be the focus can be on fiscal policy but also the preposition of fiscal consolidation. We know the germans are always very reluctant to k about Corporation Cooperation between the central bank. Betweenave a dialogue them. That is a case in the country like the u. S. Or u. K. What is interesting is that there is a discussion about that. Also betweenussion Central Banks and governments about what can be done at the later stage. I think the focus and structural policy is something very important. I think we have more and more talks between franzen government between france and germany. The weakness of the euro zone economy the concern about the sluggishness in the eurozone. Even noises in the u. S. About how it can be weighing on them. What is your feel for how this weighs down the Global Growth story . Of course, it is part of the global economy. You mentioned that the u. K. There is annt, impact. I would say the u. K. Economy is more focused on domestic. We have seen with the numbers published recently that it remains very high. There is clearly a weakness in industrial sectors which is the eurozone, but also the fact at a global level, Manufacturing Activity seems to be slowing down. They have been slowing down during the summer. Going back to the u. K. , i would say that there is some solid support from domestic demand in many sectors of the economy. I am not so worried about it. In the u. S. , there is probably but as you mentioned, one of the main concern today is the crisis in ukraine and the impact of russian retaliation measures was have been taking. It is happening impact but a small impact. I think the slowdown was there before the russian problems and it is not related to it. Thank you very much for joining us. Joining us from paris. What impacts has the 50 day conflict in gaza have on the ukrainian economy . We will have more from tel aviv next. Welcome back. The time in london is 6 24 a. M. The finance minister says the 50 day conflict with gaza militants will cause a drop in economic growth. Tourism will be hardest hit. We have more on this. Israels economy has already slowed down or was already slowing down before the most recent conflict. That is right. Israels main export market is the european union. You have weak demand in many countries. The u. S. Export accounts for a third of the israeli economy. Of the shekelgth was already hampering those exports. It was close to a 12 year high before this conflict. An 18 year high against the u. S. Dollar that was causing a slump in exports anyway and a slowdown in the israeli economy. The conflict with gaza has made things worse particularly with regard to the tourism. It accounts for about 7 of the israeli economy. The peak season is more skewed toward september and the jewish holidays but nonetheless, cancellations and postponements has had its impact on that industry. It will be more than 500 million. It was set to be a record this year so visitors, also businesses in the south of the a fifth of those businesses that could close because of the impact of the conflict. Overall, this is making the Economic Outlook les s orsy. The Israeli Central Bank not taking any chances. The raven some rate cuts in the recent months. We will keep an eye on that and see what happens. A lot of attention on israels decision to appropriate 1000 acres of west bank land. Tell us about that. This is south of bethlehem. Most people expect this land to be part of israels agreement with the palestinians in exchange for land. Nonetheless, it is still considered illegally occupied land. It has been condemned by the uns secretarygeneral. It has been described as counterproductive thomas and jewels and the u. S. And easyje counterproductive from the experts in the u. S. And u. K. After speak with him 10 00 u. K. Time and does impact. Thank you. He will be back with that interview later. The premier league window transferred close. More than ever on more players. The question is was this money well spent . Welcome back. It is time for todays ethics check. The record rate. Cash raidpt its targeted at 2. 5 for the 13th consecutive month predicted by economists we surveyed. The Australian Dollar had remained above most estimates. Offering less beistance than what would accepted. Has been hampered by a lack of spending. It is the best performing currency. 9296. Is unchanged at the move was announced by secretarygeneral rasmussen. Obamaes as president arrives to meet with leaders. David cameron says he will force airlines to share flat lists with security sensors and give police the powers [indiscernible] toset out britains response the rise of the islamic state. Complyines will have to listour no fly arrangements and comply with security screening. If they do not do this their flights will not be allowed to gland in britain. And releasing a report on whether london [indiscernible] a planbe considered as to expand capacity. And raising privacy concerns. We spoke to an expert to see how digital crooks could get past digital fed defenses. I am an ethical hacker. Sunday packers posted a large number of celebrities of and compromising positions. The photographs which were posted to a large number of forums including reddit included celebrities like Jennifer Lawrence and kirsten dunst. Over 100 potential alist celebrities included. It is not perfectly clear how the attack was executed but the 4chan went online to where he offered to sell images for bitcoins. Werevealed that some collected from icloud. The simplest way is basically the attackers guessing password reset questions. The more danced version would be to use a tool like this. This is the social engineering toolkit. I have created a clone of the page. What you are looking at here is an evil attack page which when we type in a name or password or date of birth provides the information to the attackers so they can login. It is possible the celebrities may have been duped into Something Like this. The british football transfer window class closed last night. It proved to be a very expensive window. Now to review the the ceo. Lets talk about the total spend because it seemed to be another record transfer window but not hitting the one billion pound mark area transparency is not the order of the day. People still trying to get their tipper work in on time. Numbers are certainly up. Youre looking at the global figures, 2. 5 million in terms of total transfer spend. Youre talking about an increase of another 30 . Werent we supposed to be , andg regulatory pressure is [indiscernible] there is the lucrative deals. 25 million per pound. This disproportionate picture. Have this disproportionate picture. Another record auction. They will feed there to the club and it will mean that spending will continue to rise. In other countries you have the prevailing spending alone more than spain, italy, and france combined. That is the way the financial fair play regulations were designed to work. Teams trying to balance their books. There are other trends like moaning players. Quite a sensible approach. You see a lot more loan deals and free transfers and clubs trying to get the players off the payroll. Conditional fees as you mentioned. The numbers are not sure from this window but last year there was a 73 increase on traditional transfer fees. How does it work if youre not a striker . You get incentivized for things like lane sheets and appearances. Next this band 150 million pounds. Coming to united at the close. It was a surprise. It was the structure of the deal because the loan deal seems to have been around 5 million or 6 million. The salary could push the cost to 20 million. They inherited a wage bill so monaco am looking to make financial fair play regulations and get that i off their payroll. Within i was in europe for the world cup. He scored three in two in three goals. It is a risk. You are looking at quite a large amount of money. In a loan. O is there is a live questions. He has a great record playing in monaco in columbia but football is a dynamic game. Sometimes it make the mistake of focusing on the individual the question is how they will fit in. Does it made make sense to spend so much money, what are the statistics . It is variable. There is lots of Good Research on the correlation on how much you spend in terms of salary. It is very hit and miss. A good friend of mine used to say that transfer spending is about 99 were do not buy. They will do quite well for im always areate big believer if you can buy undervalued talent it is good business. They have secured him and he is quite valuable so his asset value will continue to rise. Taking control of some of the among the behavioral and once issues. Thanks for joining us. We take a look at the latest research. More when we come back. Welcome back. In Ebola Research may be near. U. S. Scientists will again enrolling patients in safety. Rials as the death toll from the disease continues to rise and with the west africa. Thanks for coming in. Making are we away from some substantial progress in containment or developing a vaccine. Where is the focus . Perfectis a pretty disease. Everything that can be done should be done to contain it and eradicate it. Fast if be really youre not too stringent. Lets take an example of dengue fever. It is a pretty big disease in southeast asia. One of the typhoid things. There are vaccines in development. Irises you have to make sure there is good cover. Youre not going to rebel to test the ability to prevent disease in a large environment so we will have to contend with is we will try this and show it is due to the men response and say that is what we have got. How long do these trials take place . These can be done in six months. For good reason containment means orders are being closed and people are being restricted from moving but that cant lead to problems. You have that problem in africa all the time. Access to doctors and among villages. Create a ringto of immunized people. Medical personnel, people who come into contact with the family. How much it can help a difficult to reach role area, that is the reality. Is ithe vaccines can do will be likely to be Something Like smallpox. Smallpox talkf when there was a lot of worry about the potential use of small box as bioterrorism. It is not so bad as smallpox which can be transferred easier the mortality but rate is very high. A response to be used by governments as a stock aisle, measuring a measure of having something in hand. Do this for philanthropic reasons . It is unlikely it is doing and just for that reason. It has the means to do that but glaxo, we are one of the few people who were contracted to develop anthrax vaccines. There could be money to be made under this vaccine. It is not a big money spirit spinner. Does it benefit them to be associated as a company that is developing a vaccine to combat is. A question are it it is there to help people who are sick. The reality of how much halo and wethis will have have to this is a good thing to be doing. Moment we need to think about the patients and the people who are suffering. Is currently in five countries. Thank you for joining us and bring us uptodate. Newspaper time. Stay with us here in london. Welcome back. I am mark barton. We are joined by Caroline Hyde. Data is back in the headlines everyckers, it is in newspaper. A full page of Jennifer Lawrence and some of the other targets, rihanna being among them. There is the guardian. All of this comes as we arerstand apple and the fbi investigating. Hackers used the icloud and then link them. On number of these photos have been posted and linked onto an image sharing website. Could pay for more access to more photos. snnifer lawrence representative said they are hers and calling this is as a ligand violation of privacy. One of the poorer actresses said the photos were taken years ago it and we thought they were deleted. This is the way in which this is done. That was a bug to do with fine my iphone. I have it as a protective measure. Somehow photos could have been accessed and it could have been the password retrieval system. The backgroundof. But the worrying thing is that has been a selling point. It is how your iphone leaks links to your ipad. This is a huge area of growth. They launched their new iphone. Developmentser new. They are taking this very seriously. About photos. An entirely different story. Speaking for myself, i loathe these selfies. Greetedot keen on being by a sea of phones. She misses eye contact. Than people looking at their gadgets. The queen does own a mobile phone. She knows how to use it for phone calls and send text messages. Do you to mind when you are leaving and there are the paparazzi . And the surprising signing for manchester united. Many thought he would be heading to arsenal or manchester. He is colombian in place for monaco. What is staggering is it is a loan deal. When you take into account his salary he will cost 21 million pounds. Spent 150 million. We will take a short break. Stay with us. The u. S. Resident arrived in estonia. And the management shakeup. The biggest eyewear maker said its chief executive has stepped down after differences with the founder. The future from boris island. Exelon welcome. A warm welcome. It is 7 a. M. Waiting for any details coming ough from the and in independent commission on aviation. We are expecting to hear from them. The commission has been the liberating over a number of options for expanding londons capacity as an aviation hub. Options. Of we have some of that coming through. Announcing the decision not to add the proposal to its list. F options following a study into the feasibility of [indiscernible] the proposal has substantial advantages disadvantages that outweigh its benefits. This is the socalled morris island. It was being favored by the mayor of london. His wife speculated to be a potential candidate. He was backing this option and it was expected that the Davis Commission would decide not to officially put boris island on the table. That is what they have done. Some of the flaws in the plan only at the last medication was the enormous transport costs involved. And it would require enormous investment in infrastructure. Environmental concerns. Mr. Davis is that there is doubts about the delivery and ration about a large heavy hub airport. There are environmental hurdles which may prove impossible or very timeconsuming. He said even the least ambitious version would cost 70 billion pounds to 90 billion pounds with much Greater Public expenditure options,that in other 30 to 60 billion pounds in total. In you to work out the financials. This was going to be a creation. Not an extension of something already there. They needed more time. Were not going to get the final deliberations over where we will see expansion of airport capacity. Interesting to contemplate how this leaves the coalition. The democrats were very much a that remains one of the options that is on the table. They are increasingly in favor of this option. Will no doubt be talked about. And oris johnson will run for election as a conservative in the next election. He will be going for the hawks bridge and rice the borough. And another quote. And we needius to focus on solutions. Heathrow called on Boris Johnson to support it. Whether he will or not what has been so against heathrow is debatable. And you have these political ambitions. We heard from the business lobby yesterday. About what their preferences. I have been in favor. Lets move on. Deployedke force to be at a moments notice. That is a direct response to russias behavior. How big and how fast will the strikeforce be . About 4000king troops to be deployed in 48 hours. Air, land, and special forces. The secretarygeneral said it is important to not be naive about russias intentions and he called on russia to stop their aggressive behavior. It is important to look at the context. About a greatking land war that has arrived on europes doorstep. It is also saying they are suffering setbacks. Not just in the southeast but around luhansk and some of the areas there. All this comes as president obama is arriving and estonia. Ratified. Be likely the summit begins tomorrow. Angela merkel seems to be taking a tougher stance. She is saying that this is clearly not an entry ukraine conflict. She is increasing her rhetoric on Vladimir Putin saying that the aggressor. Ly she is gracing her own country. Talking about the need for sanctions that will have a fight for the economy. Bordersle to change without consequences and attacking other countries with troops is a far greater danger than having to accept certain disadvantages for the economy. There will be a meeting in brussels about potentially increasing sanctions on russia. What you do to their sovereign debt market, wei du for their Financial Instruments. This is not escalating all the way to upper level three but this does mark somewhat of an incremental increase if they end up putting the sanctions and. Hashe ceo of luxotica stepped down. The company will be led by a triumvirate. Joining us to talk about the drama is Caroline Hyde. The ceo has gone and in his place three will now lead. The founder of the company, an amazing man himself. Second wealthiest man in italy. He comes from poverty. He had no father, he was in an orphanage at the age of seven. He went on to build what is the biggest maker of sunglasses, ayban, oakley. Amounts ofenomenal outlets. Teh tried to dumb down consensual. Was aside. Is stepping share price. E the family. Back to he will be the executive chairman and with him to cochief executives. Butchief finance minister who will be the second, you were saying earlier that they could be perhaps a family member. Could leave room eventually. Will not hot no who take that role but it will be three rather than one. Alice tsang you do not often see decisions made by three. Usually there is one ceo for a reason. Timehave heard for some that the position may be tenuous. That there were some goings out even if the company was suggesting that all this column. It was back in august that the media got hold of this and i hew the shares down 4 could be stepping aside because there were rumblings within the leadership that they were not having the same view on where the leadership should go. It has been discussed and this does not make sense and that is why it they parted ways. August is when the media got hold of the news. Trade Union Representatives tell the media it has been since july that they have known there was this these issues at the top and management might have a shakeup. We have seen shareprice recover. Leave emptyhanded. Makes 77 million frames. Many can he reform afford . They are pretty expensive no matter what. Euros is what he will walk away with. , with hisa package redundancy payment. Another amount of cash but he has 34 Million Euros worth of shares being blocked but bike bought back by the company. They have 7000 stores and he has been driven this company forward. He has been 10 years at the top of his business. He happens to own a 203 foot got with five floors. Wouldnt you . Thank you. Investors seem to like emerging markets. That is next. X welcome back. It was a record level for august and were looking at the larger equities. Thanks for coming in. Tell us the latest data you have available. What kind of appetite do ,nvestors have for etfs. Appetite. Rs had a big we are seeing a differentiation fof flows. Had five consecutive months of inflows for commodities. U. S. Equities are more tactical. We have seen that money return create fixed on the fixed income side we continue to see money going into european credit. The search for yield will be a huge thing for the rest of the yieldsven where bund are. When you say an asset is underowned, relative to what . Allocations. Rk we have seen a number of surveys that we can look at and anecdotally when we talk to investors about how they are positioned a lot of investors overweight european equities in the first half of the year. EmergingMarket Equities has been a poor place to be and coming up to around march or april were seeing a lot of short positions in the emerging Market Equities. Something where you see that through in the numbers are launched. Tell me about the investors market tastes for emerging markets. Many have been reevaluating exposure to russia. People that made nervous. Why do you think you are seeing this move toward backing into emerging Market Equities . I have been a number of factors at play. If you look at the positives, the environment around the Economic Situation for many emerging countries is better than it was last year. Better thanlative an absolute significant improvement. Within that seen a number of Central Banks being more accommodative and Monetary Policy. The situation in china has improved. It is still difficult but on a seasonal level and have seen it pick up. Even with the dollar being stronger and has not have a significant impact. Nervous about emerging markets. As russia and ukraine has escalated European Equity fund to become more vulnerable. Driven bys [indiscernible] how will the ecb if it goes fullblown key q e, how will be influenced . That is the search for yield. And something we talked about as we looked into the second half, what happens when investors realize where yields are. A lot of that is investors being safe. That will be a huge story. It seems money going into noneuropean markets. We talked about that, is there more appetite for high yield . We have seen all redemption money come back. We look at the highyield flows in the market. We see a market whereby Retail Investors have been more skittish. An a need for yield. Valuations are still pretty expensive. There is a place to buy yield. 720 a. M. In london. We take a look behind the iliad. Ant gilead welcome back. An on sexual and unsuccessful bid. Founder is the eighth richest person in france. Tech is the first entrepreneur but he started out at minitel. Before the dotcom bust. In 2012 he moved into mobile telephone. From . Re did he come he is french and grew up in south france. More helpful aspects. Strange mix. He has gone from that to an the telecom industry. His image very much well child. Is in there with the french establishment. He is dating bloomberg. Co [indi] hehe has grand ambitions, wants to conquer america as well. Andmobile is larger investors are cautious. He is worth about 7 billion now. Above 10 deal he was billion. He seems to think of himself quite the forefront of the of technology. Profile. In his three lunche three times a week with his children. Thank you for joining us. 10 extra and vary profile. Where 36 minutes from the start. Stocks open higher today. Stay with us. Welcome back. This is your fx check. We have the rba keeping Interest Rates unchanged in australia. The Central Banks is an overvalued currency is hampering the economys transition to domestic Growth Drivers from Mining Investment as it extends along the Interest Rate adjustments. The rba governor said australias expansion could be a little below trend in the year had keeping rates unchanged for 30 months at 2. 5 . Economistsicted by interviewed by bloomberg. There are declines in key commodity prices, he he said it is offering less assistance than balancedachieved in growth. The aussies the bestperforming group of currency this year. That will change today in light of those comments. Are the headlines this hour. Nato is forming a Rapid Reaction force to be deployed in Eastern Europe to deter russian incursions into former soviet states. The move was announced by six cheap general secretarygeneral rasmussen. It comes as president obama arrives today to meet with. Ders from lithuania in a statement to Parliament Cameron set up britains response to the rise of the islamic state. We are putting our longstanding arrangement on Aviation Security around the world. On a statutory footing. If they do not do this their flights will not be able to land in britain. Boris island will not be built. Really against the plan for a new air hub. The Commission Said concerns were behind its decision. It would have cost more than 90 letsounds create return to our top story. Our guest is joining us today. The Economic Impact on the likes hungary, lithuania, estonia, latvia, what is the impact from the ongoing fallout between russia, ukraine, and the eu. We have seen this in the last round of pmis. Some have been targeted in terms of their exports or felt the effects of the export and problems they have with russia. Not wants said they do certain products imported. Wheres the pain falling most one place. Land is , all those smaller countries they will try to diversify. Diversification is hurting them. Countries they are basically surrounded. Lets not forget. The eurozone is facing its own microchallenges. They are highly dependent. You have achieved the eurozone of the west and russia in the east. I did not go into recession so it managed to weather that. Can it whether this because it is seen as the proxy for investors in times like these. It is the biggest market. Youre right. But what is next, where severe risks and it is the biggest market. To users are going is trying toryone dislodge russia. What kind of voice to Eastern European countries have when it comes to negotiations within and whatound sanctions sent to have toward russia. We saw the Prime Minister appointed as the european the eu president. He is the first Eastern European politician to be appointed. It is highly significant. This is the voice of Central Europe he recognized create i thingit is a fantastic for pulling up the region as a whole. It will probably imply a tougher voice in the ongoing tensions. At the eu has embraced. Seen as more compliant with russia. I would say the massive [indiscernible] that run of sanctions was pretty expect more ofld the same. We are in a change of dynamics. We have seen a total change of tone. And now tough lines. What about the russian economy itself my inflation is running above the 5 target. The sanctions without beer assessment . A few months ago we were talking about risk of a recession. We are things are going going to see acceleration of capital outflows. The picture is not good. We have record highs and all sorts of assets. Into asianing equities. May be investors are less sure about the European Equity space. Tore is money going to flow until Political Tension continues . Africa has emerged as a new safe haven. The distance from johannesburg is on the order of 10,000 miles. Also doing really well. Those include russia and turkey. Thank you for joining us today. The conflict with gaza militants will cause a small drop in the economy. Economy was slowing down before the conflict. The conflict made things worse. We heard from the ceo of the secondbiggest bank. They carried out to surprise rate cuts and we have had that from the finance minister. It is hard to extract what proportion of the slowdown hitting israels economy is due to the gaza conflict create before hand it was slowing anyway. Exports account for one third of the economy and they were being hit by the double whammy of the shekel. Close to a 12 year high before the conflict with gaza. Close to an 18 year high. Ino you have weakness israels number one export market. They european union. Still expected to grow more than 3 . The strong israeli shekel has been harming the israeli economy. Tourism the biggest casualty. The Tourism Industry reckons the conflict will hit them at the tune of half a billion dollars. A lot of attention on the decision to appropriate more land. This is land in the west bank between settlements and jerusalem. To make the two areas contagious. Although it is in the west bank this area would likely be included in any permanent agreement. Given that they forged a ceasefire and given the poor relations between israel and the palestinians it is likely to exacerbate things. The economy minister said the appropriation of this land is punishment for the kidnapping and murder of three israeli teenagers which happened a short while before the conflict. Tech security flaws laid bare. We take a look at the investigation into the hacking behind the release of photos of celebrities. Welcome back. The time is 7 44 a. M. Apples icloud service was hacked to steal nude photos of celebrities including actor Jennifer Lawrence. Actors . Doinapple doing . Hackerss unveiled that 4chan. Ted on of photos ofeds celebrities and we have got it from the icloud. They had this data from the icloud. We have an apple reaction. We are came out and said investigating. The fbi hardly excludes makes a statement of what they are up to. Because of the high Public Interest we thought it was appropriate to provide a limited statement and say they were confirming investigations. All this surrounding naked photos of celebrities illegally hacked. Who hadennifer lawrence a representative. This is a flagrant violation of privacy, she said. What seems to be worrying many mary rinstead said her husbandken by and deleted years ago. How likely is this to have happened . Protect website said it could be a bug within the iphone. Within that and that could be why or a password retrieval system. One of the lectures there is saying. It could be that we know some much about these celebrities and we know what their mothers maiden name might have been and their first animal. If you want to reset the password it is easy to guess what the answers are when you reset the password. This could have happened by the icloud. Area of their business. The way that you can link data from your iphone to your mac. It is quite a selling point. There is a bigger display and record chair near shares near a high. Thank you. We are minutes away from the u. S. Open. Sessionthe tuesday higher. Welcome back. The time is 7 51 a. M. Ahead of the market open. Thank you for coming in. See a bit of an uptick in equities. The u. S. Back in play after a holiday yesterday. Ground. Een on the it is a nice soft start after a long weekend. The bullish mentalities might be on the back. Quitearkets closed percolate. They will follow on that. Despite the nato moving meeting at her their week there are tensions. There are issues that have dominated european inking. Their exposure is less on a direct financial basis. Cap ring the eurozone and the like not quite some its the u. S. Companies. Talk about a u. K. Company that has presence in the u. S. , tesco. Almost 2 and down one third this year. That is incredible. Givench time will they be . They brought him in a month ahead of schedule might perhaps reflect the desperation they have. Market share is being eaten away and not just [indiscernible] they are seeing their Profit Margins being eaten away. Need to a feeling they knit this in the bud. Noting that worth as the Parent Company said, a movement to the fresh and easy template. Refocusing on the u. K. Market, the prophet market is where most profits have derived from. We will wait to see if other assets are for sale. Has had a look. It is a bit of a mixed bag. Some of it has been mainly cost without the benefit. Has the u. K. Economy finally hit a roadblock after the manufactured pmi data . Trade partner is the eurozone. And ground down 50 points manufacturing pmi was disappointing. The numbers were lackluster. Been higheres had than expected. It is a question of whether they reorganized, reshuffled their wares at this point. It will interesting be interesting to see how this pans out. And how it will pan out on a Monetary Policy basis. Will they be less likely to [indiscernible] it does strengthen the armor of mario draghi. You do feel that germany are adamant it needs to have of Strong Foundation before you pile on stimulus or quantitative easing. And they will be mindful of what is happening on september 18 and we have recent polling. It is providing a Business Opportunity for you. The poll out this morning showed the yesno vote has tightened up 47 has tightened up. 47 say yes and 53 say no. For a long know time. It has drifted a touch but showing an 80 chance of a no vote. Prices are being driven by trading. Thank you for coming to speak to us. Joining us from ig. The rhetoric from russia. Retches ratchet up we will see you tomorrow. Welcome. Hope is trumping reality. Obama is arriving to deliver in message to Vladimir Putin. Here with me now is the International Correspondent and Caroline Hyde is here in the studio stuff what do you think obamas a will be . Eastern european allies. There is a plan to have a Rapid Reaction. Troops could be deployed within 48 hours. It is a clear message to Vladimir Putin and russia. Raybans,ing they make them all. They are making changes at the top. Tripling the stock price, the chief executive is getting teamced by a leadership will stop i know that you have more up your sleeve for us. Im looking at apple. Withve celebrities personal data and personal photos hacked. The u. S. Tech giant and the fbi have said that they are investigating. This will fuel concerns about data going forward