Bends while apple is forced to pull the latest ios update after several lost service. A warm welcome to countdown. Im anna edwards. This 6 00 in london thursday morning. The rise of Islamic State dominated the agenda at the United Nations meeting in new york. Barack obama called for support in the fight against extremism in iraq and syria. Terror. D condones this no grievance justifies these actions. There is no reasoning, no negation with this no negotiation with this brand of evil. Only language is known violence. His force is one country said to join in that coalition is the united kingdom. David cameron called the General Assembly and said his country will begin a new phase of involvement in iraq. In london, he will chair a Cabinet Meeting ahead of the parliamentary vote on taking part in airstrikes. Coming up on the program, stay with countdown. We bring you interviews that you do not want to miss. Be will be speaking to the google chairman eric schmidt about alibaba. The ecommerce site begins its first week as a public company. They have done a fantastic job of anticipating needs of the emerging middle class of china. China is a big place. We will hear what eric schmidt had to say about samsungs come petition with apple. We will also get the view on the continuing industrial action into air france. Until the french sort out i think it will be slow to open basis. We will bring you more from that interview and well hear from the italian Prime Minister to get his strategy for reviving europes economy. Blocked. Now is we need a vision for the next europe with an investment. top stories. Air france is offered to drop a plan to expand its lowcost unit in exchange for an end to a 10 day pilot strike. Lets get it up date. Where do we stand on this . Companies did make an offer. They said they will drop is to expand. Theyll continue in both the netherlands and france. The second thing they asked the pilots for was for everyone to back expansion within france. They call that a profrance project. They asked the pilots to get back to work. A very conciliatory statement from them last night. To hear whatting the pilots had to say about this. They have voted to go out on strike until the end of the month. Is that right . A continued strike. It came out late last night. It was 9 30 p. M. Our time. 10 30 p. M. In france. The tone is backing down. Theoes seem like essentially got what they wanted, which is to stop the expansion. You mention how they are selling the french part of the dismissed. Frenche emphasizing jobs. Absolutely. We saw the french government getting involved. There was a bit of confusion about something that implied that yes. They said that is premature. Today what are they doing . Scrapping the project. You would deftly think one would think there are a few calls or just being made behind closed doors. For the you very much latest on that air france story. Lets move on. From record sales to iphone stumbles, the rollout of the new product is not going as smoothly as the company planned. Apple pulled the Software Update after customers complained it was causing calls to drop. The company fees complains that the iphone 6 bends out of shape you tim higgins is following this story. Has apple customers reacted to these issues . A week ago they were lining up to buy the phone. Constante seeing complaints on social media sites like twitter. My email inbox has been full with Horror Stories from apple customers describing what is happening when they download the new mobile upgrade system to their iphones. It has been a little buzz here. Bewhat do we know about the nding . That sound like a difficult thing to fix. It is not something you could send a Software Update. Today fixesemen these phones. Who has00 or so folks these stones around the u. S. He has seen these things the previous apple phones. And 5c. E iphone 5s back. An bend it it does not always work right. Their advice is not to sit on your phone or break it. This is not a problem for most people. This is an extreme situation. The big problem is the publicity. This occupied a lot of airtime on television across the u. S. Thet of social media as company is launching these phones. Phones represent about half of the Revenue Generating to apple in the last fiscal year. Thank you. They had to apologize for their mapping software. Tim higgins from bloomberg news, thank you for joining us. A month before a common the ship goes to beijing, there is a question about the longstanding centralbank governor. We have more. What are you hearing . There have been rumors before about whether xhou will leave his post or not zhou will leave his post or not. There have been a lot of rumors, for 11 years i made at. I might add. It never materialized. In december, theyll embarking on a bunch of new financial reforms. He was approaching the normal retirement age of 65, then he was asked to stay on. He is now 66. He has been a strong advocate of freeing up and trolls on Interest Rates and reducing intervention in the exchange rates. With the slowing economy, authorities might be grappling with on how best to give market a more decisive role in the economy. Deep in mind the Central Banks does not work independently of the government. The answer to the government. There has been talk of friction between the central bank and the government led by the premier who is in charge of the economy and policy related to that. He is the longestserving governor, 11 years. He is 66. He will have to step down at some point. Is that big party powwow in beijing. There is increased Media Chatter again on social media and the wall street journal has a story basically saying the same thing. If he is going to be replaced, who is most likely to do the job . It is probably a short list. It will not be an open process that we have a confirmation of janet yellen in the u. S. This will be done behind closed doors. It will be a short list, those who are qualified. We asked economist. Six of them said it would most likely be the former security it was then china most likely successor. Hesx years wellversed in chinese financial circle. He was a security regulator. Hes a former Foreign Exchange. Hes a former Deputy Governor of the people inc. Of china. He is wellqualified. Five out of 13 at another candidate who is a current Deputy Governor. That is probably the short list right there. Those two people. Thank you. Stephen engle, thank you for joining us. Lets head over to bloombergs hans nichols. Good morning. This is one of my other attempts to make you jealous. Im here in front of the mall of berlin. It is opening today and will be the largest Shopping Mall in germany. What we have here is a conflict. We have the mall where people and economists want germans to spend. Right across the street we have the finance ministry. It is that clash that may define the future of europe and economic growth. I get to do more Christmas Shopping for you and mark. So generous. Thank you, hans nichols. He covers European Economic stories and getting ahead on his Christmas Shopping. Thank you. Still to come, no kiwi in europe are now. We look at the challenges facing worldwide investments. Time for todays company news. Selling itswill be galaxy phone in china. The phone will be sold. This gives them a head start on that apple iphone 6 that is still waiting for the governors approval. An update for the iphone operating system after the new software caused calls to drop. Some customers reported the fingerprint touch id feature was s8so faulty after the io update. And googles air schmidt has been talking about apple. They say the company rivalry benefits mobile consumers. This brutalay competition between apple and google over android and ios has enormous benefits for consumers worldwide. , that look at innovation competition which i think is the defining side benefits billions of people. Lets talk about the european economy. Ministeran prime underlines the need for growth over austerity in europe and told us that. Creation was key to improving his countrys economy. Way. Mpromise is not the in this case, we must invest in of markets inergy of markets inity italy. In the last six years, the number of unemployed has doubled. 12 points of 6 of unemployment. Numbers. Still, this is not the time of compromise. This is a time of correction. That was italian Prime Minister. Joining us is my guest. Ood morning to you lets talk about this debate of growth and austerity and the reform agenda we are seeing. Theyre saying that economy it kind will stick to their reform agenda. Do you believe in the reform agenda . Absolutely. A structural reform across europe is very crucial. We know that some of the content in the euro area has managed reform. Spain has introduced a bigger bond the labor market. Beenday and friends have italy and france have been lagging. They need to do that. The are fiscal measures that should and can help the country get through structural reform. You mentioned spain many point to it as a success story. Extreme levels of unemployment we see, do we have to look through that and hope that those levels come down after the full effects of the reforms are felt in those markets . There had levels of unemployment as a key concern. Sure. In spain, it is still quite big. We need to wait for the structural reform to take effect. It doesnt happen overnight. It takes time. By the way, it might have a negative effect in the short term. In the long term, it is food. It is it is good. It is about ensuring growth. We had a times talking about reform. We hear it highend talking about reform. We have heard italians talk about the reform. Yes. There have been recent changes in government. That has been a factor. The idea of fiscal stability is gaining the men 10 and perhaps we dewdney gaining momentum. To gain, we need to see monetary reform. And if we see more reform, and to think the germans might be more willing to loosen the Purse Strings a little bit to sanction a the to bit more stimulus of some kind . Absolutely. It is about the fiscal measures that is helping the growth along the way. Who has room for fiscal measures . We do need them to take steps. What do you expect from the monetary side of things. Growth story remains very fragile in the eurozone. Things be weak enough for fullblown qe . Im actually getting quite positive on the cyclical story. That is very important. Real economy. The i think we will see better numbers. I do not think at this point in time that they could do more qe. Theres a lot of political tensions and issues. Yes. Thank you. Little bit what is happening in the u. S. And in the emerging markets. Welcome back to countdown. Im anna edwards. With a global economist at fidelity worldwide investments. Lets talk about the United States. We heard from a number of dead speak fed speak. They warned not to raise rates too soon. Many thought that rates were raised too soon and punctured a recovery. How much of a rate expectation to you have for that United States . Lets talk about what is happening with the data. The cycle has been improving. We expect the u. S. Economy to continue recovering on the back of the recovering housing market. Inflatione time, pressures are most nonexistent. The suggest theres still some slack in the labor market. We need to wait in the to bit longer for that healing process to take lace. Could well be the second half of next year. How do you square that we do not have all word momentum coming through in wages, but we have new home sales at their strongest . Which of the measures seems out of step with the other . I think there some longer in terms of wage growth. Negative. L somewhat course, the latest housing data is very encouraging. Lets talk about emerging markets a little bit. He affects of the ukraine conflict is clear to see in many the sentiment data and perhaps in the growth data. Is this something that is waiting on Global Growth for you . I think it has definitely been weighing on growth on the continent numbers. We seem to be at relative calm. I think the markets have a just i thinkion should unless we see a major escalation have i dor we not inc. That this will continue to weigh on noble road. Morning. O see you this still to come, confronting Islamic State. We look at how turmoil is hurting economic stability should stay with countdown. Welcome back to countdown. Im anna edwards. This is where the euro dollar is currently trading. May seems like a very long time ago, wasnt it . We are at 1. 2764. The ecb plus to expand its balance sheet. He did not have any luck in the ltro. There are some way to go to get to that one trillion. Mario draghi is telling everyone to treat those operations as a whole and wait for those december numbers. Wants toaken help with the inflation numbers. Inflation running at 0. 4 in that eurozone against the target the ecb had in mind of 2 . That is where we are on the euro dollar. 14 month low. These are the Bloomberg Top headlines this hour. Islamic state dominated that u. N. General Assembly Meeting in new york. Barack obama called for further International Support in the fight against extremism in iraq and syria. He said theres no room for negotiation with Islamic State and about to destroy the militant group. While obama was speaking in new york, it u. S. Strikes were launched and the uae. Oil refineries in syria were had. Discussed allande french man beheaded by the algerian group. The group warned it would kill the hostage in france did not end there strikes in iraq. Lets stay in the middle east and the turmoil. Your to top of the future of Oil Investments in the area is that chairman of a corporation and independent energy experts. Thank you for coming in. Lets talk about this latest operation that we are seeing by the u. S. And its partners in the middle east. We do not see a great you love affect on asset prices. Not a great deal of effect on oil. Are you surprised . I am surprised. Many have been surprised. It was down in france slightly. In many ways, the markets are well supplied with oil. The stocks are at 58. Bystanders. Much the markets are reasonably week. The Economic Outlook is not very strong. That being said, were a lot of the oil comes from, this is where majority of oil reserves are. There should be a little bit more worrying from a gut feeling point of view. What about the geopolitics behind all of this . You take any comfort from the fact we are seeing a very interesting coming together at the moment . Guitar and the saudis are on the same side, for qatar and the saudis are on the same side, for example. That is very good. Saudis never the agree it on things and they are getting along on this. There are refugees in turkey. Many have crossed over the border. Yes, there is this we need to be careful who wants what from whom in this alliance. The u. S. Seems to be a little bit more concerned with a new strategy of the al qaeda part in syria. The europeans are much more worried about isis. We have hundreds of europeans. Some europeans are worried about other part of north africa. The italian Prime Minister talks about how the priority is libya. Juggle threey wide here touting geography he re. There talking about should we the first marga pershmerga kurds . Symmetric war. Theres always a little bit of an advantage. We seem to be learning about new parts of the extremist movements. Has been a part of the vocabulary. Their new forces to come to terms with. Fragmented. Ibly are you sure you know what youre doing . There are some sympathizers. It is not even the conglomerate. Loose association of all sorts of terrorist was slightly different ideology. We are president obama talking about the United Nations. Many have seen just a that he has toughened his stance. What wanted the change from him in this area . Is it the regime change in iraq or the moods that we have seen . It is both. Regime forn iraq it hasen he wanted that and. Of thosebeheading american journalists, the public sentiment in the u. S. Has really shifted in or miss late. They give very much for joining us. Lets thank you very much for joining us. Lets move on to h m reports earning in around half an hours time. We are joined by charles allen. We have some strong sales figures. What to expect to see the profits numbers . Good morning. T is a great unknown with h m strong skills dont always translate into strong profits. There are always a couple of things. The second is this long running story with h m is there are investments and new brands and online and will the cost growth continue to be the head of the sales growth . What are the uncertainties in the h m forecast . Mentioned what we know about sales are ready. Why are we so uncertain about the profit numbers . What we have got is online investments. A business in sweden for ages and ages. It is moving online rapidly in many laces. It has been about a year since they were in the u. S. This costs money. The second thing is they have got a whole load of new brands. Costed up to be a major brand shared this how significant are these new changes compared to the main line . They have never broken it out. They must be less than 10 . On the other hand, they are being built to be bigger segments. That is why they have got the costs. They made the acquisitions which are being built up for Water International expansion as well. Aggressive,te arent they . Considering how long it has been around for. 21 the last time we heard from them. When you consider how big they are, it is the second Largest Global retailer. It is. He had to member the air coming up a slightly weaker quarter. You have to remember theyre coming off of a slightly weaker quarter. It implies they have got back into tune with the customers. Last week was that they were showing that they were hit by some of the week emerging currencies compared to the euro. How does that relate to these retailers . H m has gotten an advantage. It has been a bit weak. It was 60 in local currencies. You could see some depreciation then. They have been exposed to the u. S. And the u. K. Perhaps the has got a slightly different mays. We are seeing the currencies play out slightly better for h m. Thank you very much. We are expecting the numbers from h m at around the top of the hour. Coming up, taking to the skies for the first time today. Will the new plane put the company had in the battle or the narrow market . We take a look at the hopes resting on the flight. Time for todays company news. Offered to focus on developing air france that would avoid the interview location and great more than 1000 jobs in france. And consider reversing a decision for what is set to be minings biggest spin off good it was written that is listed as being studied. The new company may be worth aout 15 billion according to market. And googles chairman eric schmidt has been speaking to bloomberg. Here just talent and innovation. Europe has to choose innovation. Recession ird the only way for europe is to embrace innovation. By that theyre going to have to be more flexible. To do a lot of work to great local come face. Companies. The model has to shift. Lets talk about aircrafts. The Maiden Voyage of its newest aircraft. From toulouse airport and return. Chris, good morning to you. How big of a deal is this new a 320neo . We should remember it is a new engine. That is the key thing here. They have managed to come up with a plane that improves 20 inncy and rising to a euro. Without developing a hole in a new plane the cost of tens of billions of euros. Both airbus and boeing have a major conundrum. They have been focusing on the development of the 7h7 at boeing. And rather neglecting the narrowbody market that is a big sector of all. Theres a bit of the debate on what that would be. Airbus decided they would put new engines on an old lane plane. Not much modification at all. The wings have been changed ever so slightly. They take a previous version and up a bat and in a make it more energy efficient. Where will we see this operating . Well certainly see around the world. Most airlines do. The big part is for this in europe and the. The really big numbers are. Mongst the operators in asia it tells us something about the way the industry and demand a singing in that direction. What changes are they making beyond the new engines . Will anything else be different . They might stretch in an extra nine seats. Reposition some s eats. A good thing or not for passengers, we will see. It throughoutk the first three years of its life. Boeing tends to go for a bigger change. When that comes along, it had to mortify the wing much more and the new cockpit design and so on. More change their. There. When will we see a new body . Theres this trend towards these new engine options of older across. Aircrafts. Yearsere is another 15 older than the a320. These are rather old aircrafts. Many people said, not in my lifetime. I hope it would be in my lifetime. It will be at least 2030 possibly beyond. There is such a huge backlog for these companies. The real challenge in the next five in 10 years will be churning those huge numbers out. Them to cover the narrowbody set without exerting themselves too much. It sounds very nice for them to have. That kind of situation might typically attract new producers into the market. I was interested. We heard that there would be 4. 6 jillion dollars worth of jet orders coming through in the next 20 years. Who knows what people really pay . You wonder how much goes to airbus and boeing and two new entrants. That was certainly spurred. China is there working on its own plane. That uses new series the same engine as the initial neo for thethe a320 type of engine close to that. Certainly the chinese aspect is one that worries them rather more. Domestic the Chinese Market would be the largest in the market within 10 years and overtake the u. S. Domestic market. That would be the focus of sales. 10 years on, these planes will be slightly longer even with the new engines. China is developing its own aircraft. It might be another 10 or 20 years before they really get their. There. Areirbus and boeing concerned about the chinese contenders rather than the likes of they have been betting on the sort of halfway between a regional jet and a narrow body. Something in between. They are trying to close the gap. It in a way that looks fairly elegant, but the World Airlines havent exactly rush to embrace it. You have had a few incremental orders. Its not looking like a threat. There are thousands of orders out there. To talks for joining us about the latest news on airbus. , berliners giving the countrys retail sales a boost. Also, said that he shows exercise. Stay tuned to find out why. That is in the newspaper segment. Welcome back to countdown. Im anna edwards. It worked for dubai. Maybe it will do the same for berlin. The larger Shopping Mall will open. The country is under pressure to increase Consumer Spending and economy. The german hans nichols is at the mall opening and joins us. Are the germans going to go shopping . Berliners may go shopping. It is unclear whether the germans as a whole will do it. They want to draw tourists here to part with their euros. What will happen is berlins biggest Shopping Mall, 270 stores. It is right across the street or down the way from the berlin finance ministry. The the juxtaposition spending impulse and austerity impulse. When you look at what is happening in retail sales in berlin versus germany, clearly berliners spend more. Some of that has to do with tourism. Retail sales have increased across germany. As i mentioned, some of that is tourist dollars. People come into town and go shopping. It has exploded. In 2013. Ion visitors 2000 seven. 0 from 60 of all german visitors come to berlin. One in which the u. S. Treasury department hit germany for being almost as bad as not a currency manipulator, but had a bigger surplus than china and comparing germany to china. Consumer spending theyre not spending as much as the u. K. Or the u. S. They are spending more, but they need to get higher if the german consumer will drive the european recovery. All of this while the u. K. Discounters invade the u. K. Domestic scene. Are they open on sundays . [laughter] this is my easy way to solve it. But no, it will not be open on sundays. Thank you very much. That is hans nichols from germany. Countdown continues in the next hour. We get earnings from the retailer h m. We will bring you figures as they break. I am convinced that isi l is a direct threat to britain. David cameron recalling parliament to authorize airstrikes. President obama says there can be no reasoning with this brand of evil. The italian job. Standing firm on his plans to overhaul the labor market. We need a vision. Investment in growth. Plans. France scraps its they say they will drop the lowcost unit in an attempt to stop the pilots strike. And consumers take to social media to criticize the iphone 6. Welcome back to countdown, i am anna edwards. Its earnings reports. Whats have a look at some of the details. The Second Quarter net income figure has come in at 5. 81 billion swedish krona. Giving us more detail on the sales. We have already heard about the details. They are talking about q3. I will revise all of that. H m Second Quarter number is not the one we were looking for. The Third Quarter is what we were looking for. Coming in at 6. 9 swedish krona. A touch ahead of estimates. Quarter, 6. 9 billion. Sales rose. Trying to give us an update on the sales picture. Thirdquarter growth margin. There what i said about Second Quarter. The new information today. Pretax profit number came in ahead of estimates at point 6 swedish krone. They say they plan new stores. They see the first india store. 2014, the net for income has come ahead ahead of estimates. Just to estimate touch ahead for the numbers from h m this morning. Quarter salesd this has been a business that has been expanding. , theina in particular online offering. They will introduce an online product to 10 new markets. That is the big push from them. As well as going further into sportswear and shoes. Trying to take becomes petition to the number one retailer which is zahra. To geopolitics. Statese of the islamic dominated the assembly. Barack obama called for support in the fight against extremism in iraq and syria. Know god condones this terror. No god condones this terror. No grievance justifies these actions. Here can be no reasoning or negotiating only were negotiating with this brand of evil. We will work with a Broad Coalition to dismantle this network. One country that looks to join the coalition is the u. K. Cameron told the General Assembly his country will begin a new phase of involvement in iraq. He will chair a Cabinet Meeting at the head of tomorrows parliamentary meeting. The top back to corporate story. Air france offering to drop a plan to expand the lowcost unit in exchange for an end to a 10 day pilot strike. Good morning. Give us an update. What are we hearing from air france . Night, they came up with an offer to the pilots. They are offering to scrap the discountoject, the unit. The idea was to planned expanded beyond france and holland. They say they will not do it. They said they will expand it the discount unit within france they have asked pilots to come back to work. All coming after yesterday, the government suggesting they the project. Air france said, no, this is premature. We have not decided that. Obviously today, they are saying that. It suggests there was a little bit of pushback and discussions behind closed doors. What was it that the pilots objected to about the wider european discount operation . Was it about the terms . They are worried about contractual terms. Pilotsre worried about in bases outside of france that will have different contracts. The terms will not be as good. That will then have an effect that will drag down overall, everyones pay. The company in some ways has had an easier time letting people go negotiating new terms and contracts. You had one of the smaller unions coming out with a variety of things. With a variety of things they wed, ok, if you do this, might come back to the table. A lot of that had to do with contractual terms. If you would have air france pilots moving to that unit and what would that mean. How would that change the contract. With there were worried about is aviaou have a trans pilot who gets promoted that brings everyone down. Maybe the french government, maybe they have some thing of what they want. Now we have a focus on creating more jobs in france. We still have the one group we still have two from this morning are the pilots. They said they would extend the strike yesterday. They have yet to respond to the new offer. We will be waiting to hear from them today on that and hopefully that will settle things. Thank you very much. A month before the communist Party Leadership meets in beijing, there is speculation over the future of the Central Bank Governor. Stephen engle joins us with more. What are you hearing . Morning. We have had this talk before. 2012 theaced in Central Bank Governor was about in 2012, when the talk resurfaced, we had a new team coming in with a bold reform agenda. He was asked to stay on. To navigate the bank through the beginning of the process. Joe has been a long advocate of reform. Advocating freeing up controls over Interest Rates. He is 66, 67 in january. The leadership has mandates for sure. There is a slowing economy. Authorities behind the scenes may be grappling with how best to follow through the with the pledges. The in mind they answer to government. Joe has served his time. Is the longestserving governor at 11 years. In january. To be 67 we are getting the watercooler social network sites. We had a wall street journal story yesterday saying perhaps he is going to be asked to retire. What is the watercooler chat about who might replace him . If he is really going . That is an interesting one. Six out of 13 economists surveyed pick the former head of the Security Regulatory Commission as the most likely successor. He is eight years younger, 58. Very experienced not only as a regulator but a former chairman of china construction bank. He was the former Deputy Governor. His career took a side day version when he was asked to be the governor of a province. People do not expect that to last too long. He push through of i80 pushed through a variety of reforms. Thattch the interview charlie rose did with him. He talked about the reforms china needs. He will be an interesting choice. Stephen engle joining us with the latest. Coming up, we talked about photostiansen of the in the markets about markets. Y in the time for todays company news. Samsung will begin selling their bigscreen phone in china this month. This gives them a head start on the apple iphone 6. Apple has pulled an update for after thisng system system the operating system caused calls to drop. Eric schmidt has also been talking about apple. In an interview with google, he said the rivalry benefits mobile consumers. I would say this brutal competition has a norm us benefits for consumers worldwide. If you look at the innovation, that competition, which i think is the defining fight of the computer industry today, benefits billions of people globally. Lets get some breaking news. Is to consult on extending new rules to more benchmarks. A couple of years ago, we had an investigation and scandal surrounding manipulation of the london interbank offered rate. We had the investigation and action was taken by regulators. Into rules were brought being. There has been an investigation into other benchmarks typically used around the city. We are hearing today that the u. K. Is going to consult on extending the rules to more benchmarks. Very topical we are going to be to hear to talk to us about markets and investment strategy. Regulation of those markets. Lars christensen. To talk toor coming us. I wonder if we could start with regulation around some of the benchmarks used in the city. We are hearing that the u. K. Is going to consult on extending li bor rules. Is this something we should have seen coming . The warning signs were there . Is a dental general tendency that many areas get more regulated and foreign alsonge has been because Foreign Exchange has not really had as many problems as many areas. Banks traded through that. But there has been wrongdoing in some of the large banks around these areas. They need to be regulated. Foreignexchange markets are well functioning and liquid. They are not the biggest problem in Financial Markets but things need to be done appropriately. This might result in further regulation of four and exchange markets. In all likelihood. That is the tendency in the world today. For exchange has been relatively light for many years. It is the way the world is going. I hope people will bear in mind that Foreign Exchange has worked very well and has not caused major problems in my view during the crisis for consumers and businesses in terms of destabilizing Financial Markets. At the end of today, people have to act appropriately. View of talk about your some of these markets. You dont really like the euro. I speak to a lot of people who do not like the euro. You dont like the dollar much, either. An interesting call giving the divergent strategies we are seeing from the European Central bank and fed. I dont like the Growth Prospects in either zone. That makes it difficult. I am more concerned about the euro as a currency than anything else. A failure of been giant proportions. May be one of the giant biggest mistakes made in europe. Is it will come apart eventually and we will have a more rational currency. If you look at it more from a trading perspective in the shorter term, there has been a significant selloff in the euro over the past six months which in all humbleness we predicted correctly. The question is how much more go . That got to somewhat further, 125. From that point, the dollar is looking richly valued. That should also create a small bounce in the euro. We will get to somebody or thoughts any moment. In a moment. When will we see rates rise from the fed . We have heard from three of the speakers over the last 24 hours and they were warning about not raising rates too soon. They all referenced 1937 when rates went up to quickly. Are there parallels for you . I also think they will be very dovish. It will be a long while before we see significant rises in most places. The World Economy is in a worse state then people understand and appreciate. This is because politicians are trying to talk it up. But when is the last time you saw a prediction of the future view of growth hold . The u. K. Story gets her revised upward. Sure. I am more in the eurozone area and the u. S. I think anything outside the eurozone has better prospects. M savior. He long ter but for the eurozone and u. S. , people are overestimating the pickup in growth expected. Anre has got to be accommodative stance for a considerable time to come. We will talk about your views on the euro in a moment. Thank you very much. Lars christensen stays with us. 7 20 in london. Welcome back to countdown, i am anna edwards. We are back with lars christensen. Lets talk about your views of the euro. You talked about it a historic failure. It is still hanging together in southern europe, there is youth unemployment in excess of 50 . In that sense, it has failed. Can you say it is the still it is still a work in progress . Me, it is unsustainable that you have 17 countries under one currency regime. Unless you want to take the step of full economic integration. I dont get is desirable because it does not drive accountability or discipline. It is not politically acceptable for the population, that some countries will be relegated to a second division. I think eventually the eurozone will have to look at different. Necessarily mean going back to 17 different currencies, but it makes no sense that germany and greece and portugal and spain have the same currency. Benefit in the short term for germany, but it could also break the back when they have to pay the bills in the longterm for germany. We hear these criticisms. The reply from those who believe in the euro project, if that is the right term to use, the rebuttal is this is a political project. As long as it has political support, it will be made to work. I agree with you. I believe this has turned into a religion for many people. A huge amount of Political Capital invested in the euro. A lot of senior politicians with tremendous amount of egg on their face if they let it break up. They will defend it as long as possible. I find it quite shocking to see tople actually willing sacrifice an entire generation of young people for a political project that is doomed to failure in my view. I take a dim view of it. I think it is an immoral project to keep it going because everybody can see the consequences. The political will to keep it alive seems to still be there. The u. K. Surviving in its current form after the vote in scotland last week. Was that a tense moment for you and your business . It created some volatility. Which give people some trading opportunities. We had no issue with it. It was an interesting thing. At the end, it came out like most people had predicted aside from a blip in the polls. And has reignited many separatist dreams around europe. At the end of the day, this could be another problem. Thank you. We have to go for a break. Lars christensen. See you in two minutes. Welcome back to countdown. Lets have a look at the Foreign Exchange markets. 127. 57. Lar testing at the shows you where it has been so far this year. We were talking about rates as high as 139. The European Central bank wants to increase their balance sheet. They have a target of 1 trillion they want to add. Baby steps towards doing that with the targeted loan program in september. December andit for judge those operations as a whole. The eurozone would benefit from a weaker euro. That is where we are. 127. 58. These are the top headlines. Topping the Islamic State generated dominated the agenda at the un meeting. Barack obama said there is no room for negotiation and vowed to destroy the militant group. Well speaking, airstrikes were launched by the u. S. , saudi arabia, and uae. Saidntagon spokesperson Oil Refineries in syria were hit. Been ah hostage has headed by an algerian militant group that says they are allied with the Islamic State. They warned they would kill the hostage if france did not end of the airstrikes in iraq and of the airstrikes in iraq end the airstrikes and iraq. The companys latest expansion plans. Also, the tenday air france strike. A lot to talk about. After 10 years, some of the comments were pretty much on printable. Principle. He admitted some of the comments were wrong. He has always been clear that if you deal with Global Distribution systems, effectively Corporate Travel agents when you go to the travel agent and the computer says no it is more the corporate one. When you ring downstairs and say, you want to go on a trip, the chances are that the gdsmberg system is using a to use that system. The option has been there for big corporates to go with other airlines, not ryanair. He is signing a series of deals with the distribution systems. He wants business travelers to ridfly with ryanair. Things are changing. Some certainties in life. One is we will see strikes at big legacy carriers. We have that clearly. Another is that Michael Oleary will be forced to change his mind. On business travel, a new website. Mobile boarding passes. Seating. They are going all out. The friendly face of ryanair. When i used to work in the aviation, there was a joke that the ryan air Complaints Department was a fax machine. There are some to truth to that, sadly. But he watched easyjet doing great business. What youre are seeing are the fringes of the model. They are centering around a nicer model, trying to take costs off but dealing with scale. You spoke with him. We talked to him about this. He now increasingly sees himself as a retailer. Listen to the answer about changing the model here. Also listen to the change in tone, how he ceases company. Sees his company. Grown to be the Biggest Airline in europe. The brand is evolving. The way we service our customers is evolving for the better. The customers think we are evolving for the better, too. You said you are going to be serving more hub airports. One opportunity business packages. What are we going to see from you . We are ready have the 10 year growth agreement. Buserves the is this siness and hightech environment. Inare opening a new base lisbon. In cologne. We are growing or extending the bases in the main rome and barcelona airports. There has been a big shift in our model. With the new aircraft orders, we expect to double in size. We expect hefty growth will take place at bigger primary airports half of the growth will take place at bigger primary airports. Ryan is not at the big paris airports. Is that going to change . What we are seeing in the way the industry is changing is the primary airports are coming to ryanair. And error tell you italia cut air flights. They are coming to ryanair because we have the aircraft air orders aircraft orders. Will give you the discount to persuade you to grow. Please link our primary airport to your existing destinations across europe. Is that going to happen in france . Atre is a huge opportunity the moment, with a massive strike taking place in the country. Easyjet looks like they will be a beneficiary. Frances the country i would be least interested in growing in. The have not sorted out their union legislation. Particularly with the base we have in marseille. To growery content rapidly in spain, italy, germany. The u. K. , where we are growing rapidly, we open a new base in glasgow. Three times from glasgow to london. With lower fares and more frequency. We are happy to expand in those markets where we see opportunities. Until the french sort out their legal structures, particularly their north korean attitudes towards unions and protecting unions, we will be slow to open bases in france. Final question. You have expressed in the past pilotsabout the way the approach this industry. What advice would you give to air france . I would say the policy he is pursuing, making concessions to the pilots, ludicrous concessions they would not expand their discount carrier you have to stand up to the unions. If that means take a strike, take it. You are never going to make air france or lift on the l uftanhsa stronger by making concessions to the highestpaid, least work sectors in europe. Eventually even the french will work that out. Others have worked that out. The first thing they did with be ibera was do a deal with the pilots. Than life becomes easier once you get them on board. It will be a tough winter. He is putting on a lot of capacity. Easyjet is putting on a lot of capacity. They are going to squeeze the legacy carriers. If they cant make their models work, there will be interesting times. Airlinesw cost can make their model work at these main airports. If you look in the south of france, easyjet is dominant. That is air frances backyard. Guy, thank you very much. It worked for dubai. Maybe it will do the same in berlin. The soon to be largest Shopping Mall well open in the country as the country is under pressure to increase Consumer Spending. Consumer hans nichols is at the mall. Isont know if mario draghi lurking behind corners, but they are going to go shopping there . Is marioestion is, draghi handing out vouchers to convince the germans to go shopping . Not just relying on exports . That is the story we are telling. That is the new berlin mall. 270 stores. The question is, who will be shopping there . Will it be tourists or berliners of or germans . Retail sales are flat in germany for the year. In berlin, they are up 4. 7 . That is because berlin is becoming a tourist destination. 11 million visitors in 2013. Up 50 from 2007. 16 of all german visitors come to berlin. At the same time, create a shopping culture in germany. When you look at the criticism germans have gotten, the account surplus is worse. Bigger than chinas. It gets down to Consumer Spending. Germany is clearly at the bottom. Some of that is health care and other factors as well. Clearly, germans do not spend asthma. They are bigger savers. It is the big push happening not only at the ecb but the international level. Have you get the germans to boost consumer demand. There may be a fiscal side from the government. Across the street is the finance ministry. They are committed to a balanced budget which means less spending. The question is whether you can get consumers to part with their money to juice the economy. It will be fascinating to many german euros are spent and how many twist euros tourist euros. Jump inaled a 20 profit. After the break, we will find out why. Welcome back to countdown. In has reported a 20 jump thirdquarter profits. We are joined by charles allen. We talked before the numbers broke. What were going to learn from report for the number two european clothings retailer. The numbers were right there. In local currency, 20 in swedish krona. Is only because of the good sales that we did not see another squeeze on profit margins. We are seeing the fruits of the investment coming through. China, now the sixth Biggest Country in sales terms. Going to overtake sweden. Online launch there. We know it is expensive. But a reward in sales. New products as well, shoes about to be launched. A much wider range of shoes coming into stores. Tell us about the investment online. It seemed like some of the retailers to get the online offerings up and running. How big is their Online Business compared to others or the rest of their competitors . They have never composed it disclose it so we dont know. Mail orderve a business since the 1980s so they had experience. One of the reasons it took them time is because they know how difficult it is. The launch of the u. S. Took much longer than almost everyone thought. On the other hand, it does seem to have been a success. They have overcome some of the difficulties and peculiarities of operating in the u. S. Market online. Next was another retailer with a catalog. Some of the german retailers also had catalog operations. It has increased the level of preparedness, provided some insight in how to do online retailing. Online is different. You have to have customer recruitment, which can be expensive. Once you get past the niche moment. And the merchandise that comes back is another big issue. It is at least 30 of what you send out. That is expensive to process and deal with. People can be surprised by that. If you have the mail order background, you know what to do with it and how to deal with it. Tell me about the china business. That is where they are growing. Is balanced between the developed markets. The u. S. Is at second largest market is its secondlargest market. Moreare also growing aggressively in china, which will become the fifth largest. Franchise operation in the middle east, beginning to grow. Charles allen with the latest from Bloomberg Intelligence on h m. You are looking at a live view of the city of london. Set to open in 10 minutes. We will find out what is ahead. Kind of sunny out there. See you in a couple of minutes. Welcome back to countdown, i am anna edwards. We are joined by josh raymond. He joins us live from the city of london to look ahead to the market open. What are we expecting from the trading day today . Things looking flat to mixed at the start of trading. Hard to find some inspiration. Flat, expecting broadly the dax opening 510 higher. Some news around tesco. Some individual stories that will keep us going. But it is looking like a fairly flat open. Coming what is happening at sports direct. They love a good pun. What they have done is taken on an option for tesco shares. It is a bet that the share prices will recover. They are looking at the maximum liability of 43 million pounds. He is putting a bet on tesco shares recovering. Percent ofalf a their entire offering. On that basis, fairly small. But it will make the headlines. Mike ashley being mike ashley, it will make a few headlines. Is what he is doing with tesco tummy more about tesco. What kind of interest do you see around them . We are at 194. As onenot been as low since 1997. 160 a lot of the shortsellers level. Neing the 160 that is where we are seeing the targets come in. They are shorting a stock. I expect a long a few longerterm positional b uyers come in. We have seen brandon names lose a lot of percentage of their offering. Buying, sitting and waiting. There is so much uncertainty. You dont know how it will play out. We are seeing a lot of short interest. Tell me about the data. We have durable goods. Very volatile. We are expect in a drop their. There. Full toll even for what is a volatile indicator. Even for what is a volatile indicator. The market is focused around 18 . The only macro indicator out there that could potentially move the market and a dollar. And the dollar. Is a bit thin on the ground. A flat open. The afternoon is potentially where we could see some action. Josh, thank you very much. The chief Market Strategist at city index. On they will not want to sell their stake in danske bank. On the move is next. Mario draghi in lithuania. More on that. Also the italian Prime Minister. Welcome to on the move. We are minutes away from the tradein. Expect a flat open. The euro dollar drops to below 1. 28. Support for the european exports, maybe an excuse and a pullback from reform experts, perhaps. Slashalian Prime Minister reformer. Bloomberg likes the r word. President it from ecb mario draghi. Dont be surprised if he talks about reforms. Look at air france. The Company Wants change, the pilots go on strike and the government declares the company will back down before air france changes course. When the going gets tough, are france and italy even able to reform . What does the euro mean for equity markets. Thats what were watching ahead of the open. On the first and the debt could fall by a percentage. Significant moves we are seeing in the euro. Down. 3 . 1. 2737, the lowest in 14 months. Everyone is gettingit