Transcripts For BLOOMBERG Countdown 20141003

Tohello, welcome countdown. A warm welcome. Lets start with mario draghi. He disappointed the markets. European stocks close lower as the president failed to set a target for how far he is willing to go to revise the economy. We will be watching the u. S. Jobs report. Analysts estimate a sharp rebound for september. Christine lagarde told bloomberg we are facing serious clouds on the horizon. We will looking in depth at some of those clouds and a couple of minutes. Lets start with what is happening in hong kong, though. A week of democracy protest has had consequences. The markets slumped on its return from its twoday holiday. The demonstrations took the shine off gold. Lets check the atmosphere on the street. Our reporter joins us now from hong kong. So, paint a picture for us. Business is back after the holiday. How much is it business as usual and how much has it been a real disruption . Im standing on the bridge connecting a passenger ferry to a major Shopping Mall in central hong kong. As you can see, people behind me going about business as usual. You see people going to work, going shopping, taurus all around. But you have to remember that this is not the whole picture. We are having more of a sense of normalcy, but we are still seeing roads blocked by protests. We are seeing schools in the western central districts closed because of the government themng us that, tellliing not to open their doors. 20 branches from 16 banks closed today. Here, business is still being affected. All of this during golden week which is a key time when Chinese Tourists come to hong kong to spend big bucks shopping. They normally go for jewelry, theetics but with protesters not spending as much. Economists are saying that hong kong retailers made about half of their october sales during golden week. Rolex, sure retailers had to shut some stores because of the protest. Haveothing, their sales dropped. Authorities are appealing to protesters to unblock roads and let in supplies, because they cannot get food and water to police officers. Thank you very much. Reporting live from hong kong. Cyber hackers found a way into jpmorgan, compromising 76 million accounts. Hans nichols is in paris. Hans, what data was taken and have the stoxx been affected . After hours,o ut so the stock is down a little bit. They are saying no password, no Social Security numbers. But here is how they did it. They got an employees password and through that password they were able to gain access to jpmorgan servers. When you compare this to other attacks, at least in recent years, it is not that high. Million households were affected. Jpmorgan has 60 5 million customers. Weve compare that to ebay or 110 happened to target, the million for target. This is not quite at this level, but it is very serious. The bank is taking it very seriously. Here is a statement from the bank when they said there is no evidence that account information for such affected customers. Account numbers, passwords, user s, dates of birth or Social Security numbers were compromised. Hing,he danger is phisi because they have names. Now the threat is for High Net Worth individuals to have accounts they hackers may be them into giving crucial information. None of that information was compromised. I am safe because any hacker my credithow high card bill is, and they would not even bother. I will be able to sleep well tonight. Hes in paris today. On tour. Hans nichols in paris. Tesco set to launch its new version of hubble. Set to take on amazon. There shares remain at an 11year low. Our Business Correspondent joins us now. Title, title. A rose by any other name. Im looking at the invitation. This is the hudl. We want to show you a figure picture. Wink. T, hint, wink, we are expecting a slightly bigger screen. Oranges, reds, blue, whites, sadly no gold. No bling. Sell half adid million units. It is only 2 of the u. K. Market for tablets, but still half a million. And they got praise from company saying that the hudl was a pretty good tablet. They are expecting to be better. Improves ons it every area. Screen size, speed, design, and accessories. We will have the unveiling at 9 00 a. M. In london. What they want is, they want the device. Be your primary interesting fact will be, will it go up in price . It was 1 4 of the price of an ipad. Just 119 pounds. If you used your loyalty points, its 60 quid. This is an area they want to lock in people. They want people to huddle around the larger hudl. Should tesco be in the space at all . It was its centerpiece for digital. It was there tech focus. You could use their tablet to access movies and music. A streaming company they bought in 2011. But at the same time, you can check out your mortgage. They wanted this to be the epicenter. The logic is understandable because tesco, if you shop in your stores and online, tended to spend three times more than if you were just a customer in their stores. If you used their music, you spent 13 . Many are saying, you take your eye massively off the ball. Analysts are saying get out of blink box. We understand the chief executive has gone to the business and said, we need to w rap this up. They say, get out of the bakeries in all of these new concepts. You are a sucker for an artisan cinnamon bun. This is a company in chaos. A company that has the worst sales in two decades. Fourd have to oust executives. They have financial quandaries. They have to analyze their accounts. Their Share Holders are up in arms. Your heart has to go out for dave lewis. He has only been in the job a month. The most famous investor in the world says, i made an enormous mistake investing in tesco. Berkshire hathaway, owns oalmost 4 . Warren buffett said on cnbc, i made a mistake. That was a huge stake. Mistake. A dagger to the heart of anyone that works at tesco. We have in speaking to the vice chairman of archer hathaway. He says that tesco owns the world one day. It stopped working. They thought they were so smart, they could do something difficult. Shares down 51 yeartodate. Berkshire hathaway has lost 800 million. It is u. S. Job state. We will preview what to expect from one of the worlds biggest Economic Indicators. Welcome back. I am mark barton. Time for todays company news. Which originally proposed buying just over 50 of tmobile u. S. Is planning to offer the same 33 per share, but for a larger stake. Jpmorgan, americas largest bank, says a previously disclosed data breach affected 76 million households and 7 million small businesses. Names, addresses, and phone numbers were taken as well as internal data. The breach affected anyone who visits its companys website. And a Pharmaceuticals Company is in talks to sell. Thats after the company failed to reach a deal with a botox maker. The markets digest Mario Draghis news conference, the focus turns to the biggest Economic Indicator the u. S. Jobs report. We spoke with Christine Lagarde, head of the imf, who was somewhat optimistic on the u. S. It is clearly one of the bright spots. When i look at the advanced economies, the u. S. Pops out. They are in a much better condition. And the u. K. Does as well. The investment in infrastructure front, more needs to be done. The senior markets analyst joins us. Good morning to you. How will we end 2014 in the allimportant u. S. Jobs creation story . Are we going to end it in a similar fashion to the earlier part of the year, or is it going to peter out . In similar fashion, probably around the 225,000 jobs a month growth. Maybe by the end of the year, down to 5. 8 on headline unemployment rate. But its not stellar. Growth, which we had been hoping for. It is the new normal of 2 growth, which is disappointing. The one thing that Christine Lagarde says, that the economy needs both policies to avoid it being mediocre. Its the biggest potential policy misstep the fed hiking early . I think so. The momentum has grown there. I think, i suspect the market is right with regard to u. S. Rates in taking the path of rates lower than the famous dots would indicate in the feds projections. The doves are still in charge. Yellen and her cohorts, the senior people on the fed, are still in charge. The rates do not go up as quickly as the average of the committee would lead us to believe. Markets are getting jittery. The dollar is up. All sorts of Asset Classes inting for the first hike interest rates. I see the dollar stays strong. In defenseoints out on his embarkation on a currency disparityints out the in the state of the economys as justification to stay within the g20 guidelines. I think that continues. It is in our performance. As is the uk. The uk outperforming the u. S. Who hikes rates first . The uk. Do you think it is a competitive thing . I suspect the central bankers through and through will be relieved to return to a normal world where they have some leeway on rates, up or down. They have become increasingly worried about the creation of financial bubbles and imbalances and mispricing. By the end of the First Quarter, the u. K. Will raise. What is it about the clients, that institutions you talk to, weve got ukraine, china slowing down, we have to fed policy. What tops those conversations . How much risk do they want to take going into the last quarter . Climbingrket has been a wall afford to use a hackneyed cliche. There is no doubt. We dont mind. Ukraine, the middle east, these rising rates. The rising rates has been preprogrammed. We cant complain. They have been warning us vigorously with slight variations in guidance in regard to the u. K. Is i think the new fear hong kong. To me, that is much more of a fear for the markets. Why . Clearly, it matters a great deal to the people on the ground there, but why does it matter in the market cents . Downplay the human consequences of conflict in the middle east or ukraine, kiev and baghdad are not Global Financial centers, whereas hong kong is. For the markets, that is what counts. Lets say you have got interruption for some reason of payment systems. Offshore cnh, the remedy, remimbi, that is huge. Might investors look at this tas an opportunity to buy the hang seng . Could this be seen as a buying opportunity . On a longterm or mediumterm view, probably. A year or so. It depends on how long he can stay solvent. The short term, that is a brave thing to do caret i think Fund Managers must be looking towards the end of the year. Are going to stay with us. We are going to take a short break. Inre going to talk draghi just underwhelmed the markets in regard to the ecb. Following now from the september,f four of 2014, we decided on the key operation of details for both the asset back securities purchs ase program and the new covered bond purchase program. This will allow us to start midoctober. S in and assetbacked securities in the Fourth Quarter of 2014. Mario draghi speaking yesterday. For more on that very subject, it is our guest. Senior market analyst. Nick, the markets seemed underwhelmed. In the break i was saying to you, why do you think the markets were so underworld . And you started with the word he spooked the markets. Did he spook the markets . He cannot do everything every time he walks out on stage. Is frustration. His normal articulate self. But he is running ahead of out of tools. Hes spent a lot of time parading governments for not putting in place structural programs as well. But i think what really worried the market was his tentative assertion that the abs and covered bond program alone would be enough to raise the Balance Sheet back to 2012 levels. That was the issue. So how ish he going to do that . Are you expecting further quantitative easing at the start of next year . I think so. He talked about a vicious circle. Because they are buying abs, there will be more issuance and that market will grow, which is fine. But i think it will not be enough, and they will have to indulge in proper grown up wq. E. , by the end of the First Quarter. What about the notion of buying assets in crisis hit countries like cyprus, like greece . There will be caveats. Theireece, will they exit Bailout Program . This will tie the men if the ecb was to buy these assets. It is a better thing that they are buying riskier assets . It is. Themys, you cant fault for trying everything they can. They have to convince the bundesbank to allow them to do these things. And thats good for greece in the sense that it helps money transmission. You mentioned the one to spank. You think the factor was not a figure put on the program was because of the Division Within the ecb . His position clear on the matter. But maybe the figure was not given because the figure would be underwhelming. It is difficult to get over 500 billion. Take us through as we look at it, the euro had a torturous quarter. And purses are on the move. How do you look at markets for this last quarter . I mentioned in the previous session, i worry about hong kong. That could have a mobile effect on markets and risk appetite. Global could have a effect. Rather than rate rises or lack of q. E. In europe. That latter is a concern, and europes dissent again into stagnation. The euro. I think that will go lower. 1. 15 against the dollar by the end of the First Quarter next year. Think you very much for joining us. Thank you very much for joining us. Coming up, easyjet muscles into france and germany and air france and the times of struggle with their worst strikes in years. What is the day and i is goals. I told you that the market was incredibly long dollars, as long as long could be. The dollar index has strengthened for the first time in three days. Seven weeks of gains. The number that was defined, the direction of the dollar over the next sixseven hours will be the jobs report. Would behe that august a little bit of a blip. This is the best performing currency over the past three months so the dollar is having a renaissance . What is a flipside to that . The fed might tighten. Out. Is that being played it is in the Bloomberg Asia currency index, down for a fifth week, the longest losing streak in 18 months. The fed and the china slowdown will take the asian currencies lower. The korean won is just off of a sixmonth low. If youre going to see flashback watch back from the fed move, this is where you will see it will stop these are the top headlines. President obama has been speaking in illinois. He said that america is under off now than when he took office. It is indisputable that our economy stronger today than it was. By every economic measure, we are better off now than we were when i took office. Time, it is also indisputable that millions of americans dont feel the benefits of a growing economy where it matters most and that is in their own lives. Hong kongs chief executive is still refusing to step down, however he has agreed at talks aimed at defusing unrest. The prodemocracy protesters have been a standout for a week. Shares headed for their weekly biggest weekly drop since march. Bill gates talks about the fight to control the ebola virus. We are lucky that we can help provide resources to the very best scientists working on malaria, the very best people going out in the field and working to finish polio eradication, despite all of these challenges that nigeria has with an election coming up ebola thatram, the was found there, we think in the next year will get the number of polio cases down to zero. That will be the last country in africa that we have never eliminated polio in. At air francekes and lufthansa. What is the outlook for europes slow cost lowcost airlines. What are we expect in out of easyjet in just under half an hour . They should be giving us a profit before tax range which would be pretty specific. The last time they gave us a little bit of guidance on this it was already at least a 14 increase on last year, so it should be ready healthy. Most analysts are estimating it will be towards the top end of the range, maybe a little bit about that. We can see towards the top end or the bit above. We will see their traffic and their september traffic it should be fairly interesting the is of the state of air france for top got some numbers from ryanair which showed a big increase. How much flexibility is therefore a company like easyjet when there is trouble at rivals . They added over 3000 seat in france during the strike. That was by adding additional flights, maybe by changing their schedule. Pretty impressive. The load factors in august were at 90 percent. That should see a pretty healthy. France is not the only place that theyre trying to was their presence. They opened a base in amsterdam, they have been growing in italy. With those expansions and if we look at the whole structure of easyjet and ryanair is about labor flexibility, etc. The suddenly takes you into a whole different set of what stage did they run into the same issues . They said that they would scrap the cabin crew calendar which is the bikini calendar. There was a real shift. There was the attitude of these airlines. You have younger body easyjet is careful about complying with the local rules. Ryan air as a slightly different structure for how they hire their pilots. They are young crew, they dont have the pension yet. We use a talk about some of the legacy carriers being Pension Funds with airplanes because they were so dominated by these enormous commitments. They dont have that. They dont have people staying places. I have people returning home at night and that just means youre not paying hotels and not all those other costs. Thanks. Ask for joining us. I was trying to work out when those numbers are up. 24 minutes of course. The man behind the Company Strategy might find himself grounded as he faces charges of insider trading. I wish i could be standing outside of the court and really give you some insight but unfortunately today is just an informational hearing. John leahy is not just the man behind the sales strategy, he is the sales strategy. Over his career, he sold about 12,000 jet. It is a remarkable run. The presence in court. It would be a case for the company. He has been so crucial to the strategy. At issue is an old case, it is a 2006 case. This will give some insight into what was happening. They are trying to figure out how to write the costs. That is secondary and we should know that there is artie been a previous case where all of the executives were not found guilty. This is yet another case that the lawyers are working on and if leahy does appear in court for four weeks, they might be under a little bit of pressure. We look forward to those breaking headlines. The Global Economy needs bolts policy. She elaborated in a Bloomberg Television interview. At the speech that you gave, you said we will not return to the precrisis world. By the g 20 nations finally catching up with lagarde . I was concerned then and im still concerned today. We talked about of this mediocre horizon that we need to avoid. Fromw is that different dr. Elerian or mr. Gross new neutral . The new mediocre has three components. One is that it still has legacies of the crisis, high indebtedness, both sovereign and corporate. High unemployment. Seriousare facing clouds. We have a lot of uncertainty. We have this new mediocre where we are revising potential growth. This is almost on the calculus basis, a first or second derivative, there is an acceleration and immediacy we saw and the stock market. Where i see it is in declining commodity prices. How concerned are they about what the markets are telling them about the new mediocre . We are watching the markets with concern and with a lot of hesitation because theres clearly a discrepancy between the points of the market in many ways am i think that forex is a little bit different but the asset values are at their highest ever. Volatility is very compressed and low. End, we see aher real economy where recovery is not really strong, we see areas is very fragile recovery. So, there is that discrepancy which is quite worrying. I mr. Drug use but today, once looked at how the markets react it to his news. Beside yellenne to step in with a policy momentum. Where will that come from . Thattotally agree with you these lady and gentleman have done their best. Monetary policy has been cooling a lot but it cannot be alone and we need to the right pace and makes a fiscal measures in those countries they need to continue to adopt their oblique finance. We need to have serious Structural Reforms in place to unleash the potential that those economies have. Our recommendation in order to isress the shortterm issue investment in infrastructure. It is needed across the world. We havent seen that in the u. S. You were critical of the u. S. , i am guessing a year ago. Do you take your criticism away for these meetings because the u. S. Is doing better . Did you give the u. S. A victory lap . It is clearly one of the bright spots. When i look at the advanced economies, the u. S. Tops out in a much better condition and the u. K. Does as well. Clearly, on the investment and infrastructure front, more needs to be done. Do join us on twitter, you send us a message. About, anything you want. We have been very busy. The race. It is another who he is. Eminem, china celebrates the National Golden week holiday and so the biggest retailers. We look at what this means for the top luxury brands. Welcome back. Its goldenlebrating Week National holiday. The Tourism Academy expects 480 million taurus to travel during the biggest holiday. Europes luxury retailers are hoping to get a boost as some of those travelers come last. You very much for joining us. What is the secret to access in the great wallet of china . Something on the region of 50 or set of all of the u. K. Retail payments. When you go into a store, we are somewhere connected into the ecosystem. What we see is that retailers are having to be ever more service focused as they look at guests and visitors from china. That means like allowing chinese visitors to paying their own currency. They know exactly what they are getting. The myth, do provide that sort of service, the ability to david is right, i think the biggest thing for Westfield London is the fact that we now accept china union pay. What is the significance of that . Thet is really the kind of. Mex of china we need to work with our retailers to make sure that they offer that is the payment choice. Give us a flavor, this was always hyped up in the a first, the chinese go to the theater for food, shopping. What herbs surge in traffic do you see . During golden week, we are at the seventh of oil per, this is about 116 million Chinese Tourists. We have had doubledigit growth in terms of Chinese Tourists visiting. Average just shy of a thousand pounds every time they come. Market, a core Westfield London is not in the middle of london. I was joking i cannot believe that there were so many Chinese Tourists heading to shepherd bush. We in the last 12 months have advertising in the chinese equivalent of facebook and we have the fourth highest number of fans. League and ther u. K. Prime minister and burberry have more. What about transactions and spend, you have they do from last october . We see overall spend was up just in one week 20 , more than 20 and if you just look at the spend per item up 40 of weekend compared to weekend. Very significant. There on the spending lead . Yes, being enabled like world pay my currency, allowing people to take advantage of taxfree shopping. Being able to pay in their own currency and taxfree shopping. Youve got these very british brands. Is that what they come for . We dont usually call it shepherds booth. Immediate destination. What is the draw. They love that truth unique britishness. Those brands. A bit of louis. There absolutely driven by richness. Great to get your thoughts. The gone girl Movie Reviews are released. The russian authorities with them under house arrest. Every six months our investigative organs extend the term of the investigation of one of the many criminal cases. Binders can perfectly well that if i return to russia under Current Conditions i will not be free to act. Russianwas the former oligarchs seeking to charlie rose. You can catch the full interview. A fascinating insight. In the meeting mine imo. I have got the story, sales boom for the catch up with the kick. It is spicy, very good. Apparently it is booming in the u. K. It has boomed in the u. S. Already. Out, tabasco. Whenever i have this debate which we have often come if you have to have any condiment, what would it be . Tomato ketchup. You are down to earth kind of guy. Very chickie because it is it isnt alle man affair. That is it for some its is a very british institution. Richard burr is a builder and he is going headtohead with a graphic designer. Of course last year we had a carpenter, we had a satellite designer will stop basically, walking past a building here in london. Andthe builder reaches out said nasty things. Ok, lets move on. This is quite amazing, this is john lewis and and the street. He has been at the World Retail Congress in france. He has come back and spoken at an event in london announcing some of their own award. He has been absolutely outrageous about france. Really vehement. Hopeless, downbeat. If you have any investments in france, francis finished. This as theescribe pit of europe. This is tongueincheek. This is needed about six weeks ago. It was released this weekend. It, gone, go and see girl. Economists are reporting again of 214,000. It is clearly one of the bright spots. Draghi drags down equities. Ecb was reluctant to spell out the central bank might buy. Jpmorgan says a recent cyber households andd 7 million small businesses. I am mark barton. Lets take a quick look at breaking news. At a quickking boost. Up from 89. 7 . Profit target has gone up. She said goal they may raise the profit guidance. The threee saying revenue. How much do you spend when you . Et on an easyjet plane they are getting expensive. We are spending and getting on in a timely fashion. Mostsyjet making the trouble of the rivals. Cyber hackers found their way into jpmorgans front door. Take us through the story. What data was taken. Give us details. Data it doesnt look like passwords or Social Security was taken. It looks like the hackers got the password and use that to get into the server. Thats why it is thought of as a front door attack. How it relates to other attacks. 7 million small businesses. ,ou compare it to ebay, target the ebay number may be total amount of accounts. Quite get to that level, but it is a bank. Says. S what a statement there is no evidence dates of birth or Social Security numbers were compromised. They got away with very little information. The danger is fishing. That is when some cyber criminal some individual to give away the password or something more sensitive. Is a challenge for all of the big banks. Onrybody is focused a lot cyber security. Take it so seriously, the entire Payment Division is in a separate part of germany where they dont even have wifi. Smartare a lot of hackers. Trying to figure out where this came from. Putin has pledged measures he firm rush all. We go to moscow, where our next guest is head of the Eu Delegation. Guest we spoke to recently said they ares having quite a significant effect. What is your take . What we are aiming at is about influencing the policies of russian government, which is. Mportant as we move forward we get conflicting reports in terms of the reforms in ukraine. Poroshenko is saying the conflict is over. The u. S. Ambassador saying Russian Forces are there. The border remains unsecured. How week are we in terms of this . The presentation on the ground is very mixed. We have seen some of the exchanges from those captured, soldiers on both sides. The parliament has approved the laws. We are concerned about the continuous shelling, especially civilian, which led to deaths. These worries some developments undermine the new position we would like to see in eastern ukraine. You talk about the unease there. I am wondering how this plays the negotiations to restart gas supply into ukraine. Will that happen . How concerned are you about gas . Upplies into europe we are going to head into this part of the wintertime around europe. How delicate is this situation . We are very aware that winter is around the corner. Temperature is very close to zero degrees celsius. I must emphasize the has been playing a very important constructive role in terms of facilitating onotiations between gas prom the one hand and the russian government and Ukrainian Government to reach a deal of debt payments as well as the price of gas for the next winter. We hope we are close to an agreement. We had the last start of negotiations last week. We will continue talking in good ukraine theure levers on contractual commitments. Provides supply to European Union consumers. I would like to get your take on this. We did an interview with charlie rose. Viewers can see that a little later. Nearingt said russia is an uprising that could match the 1917 revolution. Politicalte is the situation . Is that overstating the . Ituation its clear russia is facing deep structural problems, and the slowdown of the economy is not because of sanctions. It may have triggered further negative anticipation. We are on the edge of a recession. Having said that, we havent seen an impact on the political situation. I think it is a strong vertical power. It is still very strong supporters of the population, which we will have to deal with as we move forward. Lets see how it all turns out. The head of the Eu Delegation to russia. The top official is refusing to step down. He appointed his deputy to hold talks with student leaders. The demonstrators have strengthen their barricades around the governments main office. Andrew davis joins us from hong kong. What is the latest . There seems to be a low. Details oft seen any what those talks are going to look like or when they will be held. We just had a two day holiday. The numbers are really standing out at the protest. I have a range of started to come down, which is going to make things pretty sittingtable for people on the streets. Giving the opposing positions of people on both sides, do we see some sort of agreement being made between the sides or not . Oni think that depends whether students want to end this. Given the demand it doesnt seem like there is any room for compromise. Chief executive doesnt seem willing to step down, which is a main demand. Tong doesnt seem ready change their plans beijing doesnt seem ready to change their plans to vet candidates for 2017. Its hard to see them achieving those demands, but maybe they will find some way both sides can declare victory and go home or live to fight another day. It is continuing to take its toll on investors. Seng made ang correction earlier today. It was down as much as 2 . That is recovered, but it was down as much as four and a half percent this morning for the week. Seeing as people are tensions are dropping a bit, protesters are leaving the secondary and third protest areas, and barricades are being removed, so i think there is some hope those areas will open again and the protest will focus on the government helping, which is the least disruptive for commerce and travel. I think there is hope there is progress on resolving this. For joining us. Andrew davis joining us from hong kong. To bring live pictures because Prime Minister David Cameron has arrived in kabul. He arrived on a c17. He is making a speech. Meet the newway to afghan leader. Telling reporters we are fighting a generally schmos structure struggle against islamic terrorism. Hat is David Cameron in kabul we are going to take a short break. Coming up you can take a look at the earnings season. What is going to push investors at the site appetite . A whole conversation on that. That meets the commitment i made in july of 2010 that we would bring our combat troops home. Prime minister David Cameron visitul on in unannounced to afghanistan. He is the first after the new onsident was sworn in monday. Lets take a look at the founding partner. Great to see you. Lets talk about equity market in europe. Do you think Market Reaction was overdone . I think there is a lot about how the market enters the quarter. We saw a real risk concerns. There was a relief rally when a lot of things recovered quite quickly. Is going into q4 people are looking for something that makes a difference. He is caught in a dilemma. He knows germany doesnt want to much monetary stimulus. He knows france and germany are at ons with what they do structurally. He is stuck in the middle, saying, we can only do so much. ,here is not a Silver Bullet saying we will run out of qe in the u. S. , go to europe. That is not happening. Voice is calling for quantitative easing, are they wrong . If we have seen rates coming down from over 7 italian 10 down to where they are now, losing such a substantial part of that yield, money got so much cheaper than it was. Does that mean qe wont make much difference . Fundamentally it is a extraction role problem. Inability totical do it. About qe in the states. What happened was the destruction of clearing out the Balance Sheet. He is saying, dont point to me and say i am losing out. Toare doing what it takes save the euro. Do you remember that . We are saying the euro coming down is helping. You are trying to relieve some tension. You cannot have the level of unemployment in europe and expect a magic rolet. You will just give more money to expect nothing is going happen. That is probably the most honest, robust interpretation i past fewd in the months. What you have said would made me would make me run a mile. That means the euro has further to fall. From my interpretation, equities are overvalued. I would agree with that interpretation. Thehave to look at what evidence is in front of you. There is a concern with a lot of people saying there is going to be as Silver Bullet. Thatare vulnerable against expectation, saying, we are not going to give you a Balance Sheet expansion. I think the euro doesnt go into freefall. I think the euro correcting is as much a story that it is a negative euro story. In terms of equity markets, they are very vulnerable. We realize how the equity market works. Juncture ifcritical we dont get good news from the earnings season. How much can we draw down by . That. Phrase around i think the idea there is going to be a magnitude for correction, i think that is misplaced. That tends to be a stark reaction to misplaced enthusiasm. We had a relief rally the world was not going to and. The drift was downwards. We are going to see more in stock picking. It is saying, are there value traps . Reasonable as long as youre not requiring ecb action to require people buying. All about the be earnings. Stay with us. We will get more on what looks cheap. Stay with us on countdown. Welcome back. The time in london is 7 24. On oneet your thoughts of the other topics of conversation. That is what we see on the streets of hong kong. It is very much the key focus. Is it a broader implication . Inthey have spent years focus. I think the fact there is this conflict that has emerged in terms of how china and hong kong are operating politically, this it potentially being reviewed. I think people are taking a back step. Hong kong linked to china. I think the shift in focus has caused uncertainty. Get to where are those. I think in energy price we desperately need visibility. Problem is because commodity stocks are dollar related, commodity stocks never survive well. The whole dollar funding trade is an impact. Look at what is happening on gold price. Looking to buy cheap value. They know it is there. Eople react to solid news we cannot buy those opportunities yet. Up, brazil gears up for the first round of elections. We will look at the candidates. More on that after the break. You are very welcome back. Weekast day of the trading. Index. S the dollar. Eventh week of gains the longest run of gains since 2010. Said, by this currency. For, 250,000 watch jobs. That is what we hope the u. S. Economy added. Bloombergk at the Jpmorgan Asia currency index. It is tumbling. It is declining. Declining rather aggressively. Asia currency is under pressure. President obama has been speaking in illinois. He says america is better off now than when he took office. It is indisputable it is better than when i took office. By every economic measure we are better off now than we were when i took office. At the same time, it is also indisputable millions of americans dont yet feel the benefits of the growing economy where it matters most, in their own lives. Executivengs chief stepping down. Hong kong shares headed for their biggest weekly chop since march. Bill gates has been speaking exclusively to bloomberg. He talked about the fight to control the ebola virus. Lucky we can provide resources to scientist working on malaria, the best people in the field. Despite all these challenges nigeria has with an election and we think in the next year we will get the number of polio cases down to zero, and that would be the last country we have eliminated polio from. The president ial election will take place. The main battleground will be the countrys severe economic challenges. Brazils economy is the biggest in latin america. It has been contracting. Inflation remains around 6 . The stock market has taken a battering. Future, on brazils lets bring in the author of the. Ook it seems like it will be those two who do you think is going to squeeze through . Came with the benefit of the death of the candidate on her the campaign has been beating her a lot. He lost a lot [beeping sound] [no audio] markets feel that the government is not transparent, so they seem to prefer either opponent. It is hard to know would do anything different from what they are doing now. She is running a strict. Ntisilva campaign where has he lost momentum . . Hat has changed they were ahead. The markets were quite responsive to that, werent they . The main thing is a lot of becauseupported her there was a strong rejection as well. 35 of people say they would never vote for her. Became candidate, a lot of people went to her to see a solution of the problems of brazil. After a few weeks of everybody showing the problems, she had been changing her opinion on subjects relating to gay marriage she had been beaten all around because of that. She became stronger as a candidate. Has the world cup suede anything with regards to this election . It was a good thing because was expected by a lot of people. There are 35 percent of people who really hate her. That is quite a significant minority. There is. She will get booed if she gets reelected. Her government does have a lot of opposition. It went through without any problems. People expect a lot of problems. That yet . Got over it really is a sweet spot. It was so bad. In the media. What happens is it was so bad people started making jokes. Now they start to accept it. The government, so it doesnt affect the election at all. Thank you for joining us. Its great to get your thoughts. The author. The worst strikes in air france and lift honda lu history. The strike provided an opening for easyjet. How much did they win, next. Welcome back. Yesterday a bear market. It finished slightly lower. As you can see from the highs on june 19 it is 18. 5 lower. It is not quite in a bear market. The evidence suggests global surprise is outstripping russia. Officialut its selling price for crude in asia to the lowest point since 2008. It movesng we did have below the moving average on august 19. Crude is down by eight percent. According tosold the relative strength index. 18. 5 lower. It is very near the symbolic level. Airline profit rose 20 . Here for more, we talked you before the numbers came out. I have to admit i was impressed. 5 Million Pounds of revenue from the strikes at air france. A significant boost for that. Boostlso got a bit of a from fx and fuel. Guidanceoosted their by more than 5 Million Pounds. They expect it to continue into the first half. They say a quarter were sold in the first half of last year. There are other positive headwinds. A windfall from the air france situation. Backs have they gone to a more mainstream carrier . They are being pretty careful. Was taking easyjet. The average age of pilots is 38. The majority of pilots are under 40. They have young crews. They wont be dealing with some of these issues pension issues. They worked their crew differently. They try to bring people home so people come home and night and dont have to pay for hotels. Air mirroreeing ryan image. They are changing. Ryanair is changing. They are playing catchup game. A serious threat . By an air learns very quickly. Hug a passenger. They have responded to there was a lot of upset about their calendar. A have crewmembers in bikinis. They are going to be scrapping that. Firsts has done a lot of to pave the way. It certainly took a long time. Pleased withvery the situation and some of the big markets. We are going to leave it there. Tesco launching a new version of the popular tablet. It is part of their take on amazon. Caroline hyde is here to discuss all things tesco. It could be good. The blog is like the huddle. The first one sold really well. Better than many had expected. Today we get a big unveiling. The fact it is going to improve just about every area from speed size and design to accessories. Is we want to show you the bigger picture. We are going to get a better camera. Hd is what some bloggers are anticipated. We could get red, blue, white. . What about the price the huddle came out at 119 pounds. If you have Loyalty Cards it could be as low as 60 pounds. Half the price of a kindle fire. Many are waiting to see if it will be as cheap. Then we see a primary tablet. They dont want it to be a secondary one. The problem is they have other stuff to do. They are a grocery, and they have issues on that front. Have they been overwhelmingly distracted . That is what any are feeling. To sit on your tesco tablet and decide you were going to be accessing movies and music. At the same time, you could fill out your mortgage. Thisant to see overwhelming presence for shopping, but it tends to see if and online,fline if you are online buying groceries you tend to spend three times more than if you just went into the shop. It is all about loyalty. Many analysts are saying, get out of it. Distractions. They are still in a lot of international markets. They feel this has been an overwhelming distraction. They spent 931 million online last year in the online digital push. Three times more than they invested in bringing down prices. They did their eye off the growth stream ball. They tried to cold the market. Tesco wont wait a decade. The likes of Warren Buffett saying, i made a huge mistake. The chief executive must be such a poison chalice, especially when you have the vice chair own the world. One day it stopped working so well. Time per second this drink has outsold champagne. Sold 3lian product million more bottles then then champagne. We visited a champagne maker with more than 300 years experience. Winemaker,the master and he is picking out something special. Pounds for this vintage champagne. It would be rude not to try some. It makes you want to have more. Crist, refined, expensive. Champagne has asserted chris crisp, refined, expensive. Champagne has a certain sin is a quaff a certain je ne sais quoi. The chairman. Champagne is in his blood, literally. How often do you drink it . Every day. Not too much. A sample. More than that. [laughter] but still juicy. It was founded in 1786. They produce up to 6 million bottles a year. They are one of the elite champagne houses. Are they scared . I was scared for the future of champagne. People discover sparkling. One day we discover champagne. I want you to taste. Fax philippe doesnt seem concerned, but he quietly admits the rapid rise of prosseco took him by surprise. They have a belief quality will rise over quantity. Is some champagne that cannot that can be compared. The want to Say Something . Just that caroline got some expensive drink to try. You might mature into tasting champagne. I like to stick to champagne. Suggesting stocks will rebound for one of the biggest selloffs in months. Draghis press conference, we enter the markets. Johnny faro is next. Five minutes to go until the next trading day of the week. Hangover, or should we just move on . We are going to get a bit of a rebound. You have to put these moves in a bit of perspective. 500, off record highs. Look at what the ecb did yesterday i guess some are going to say mario draghi turned up with a p shooter. Clearly he wanted to expand the Balance Sheet. Clarity as touch how big it is going to be. The hang seng although it is pretty gloomy was just a turnaround during the session. Germany closed as well. U. S. Jobs the big number. On the move is next. Thaterro will be back with program. We will have a short break. The final trading day will be back. Welcome to on the move or thee are just minutes on move. We are just minutes away from the start of trade. Futures pointing higher. Are we on the way to a rebound . After the biggest oneday drop in nine months, the ftse has seen lows not seen since 2013. Unveils someghi details, but it remains unclear whether it is enough to stimulate the economy. 215,000 is how many jobs may have been added, even with the disappointing prior month. Todays number would keep 2014 on track for the strongest jobs growth in 15 years. The ftse 100 6 10 of 1 higher. Manas, germany closed today . Germany closed today. Paiduch is everybody being . That is going to be the critical issue. The determination of inflation or lack thereof. We have got london open and paris open. London made it to the lowest level of 2014. Easyjet picks up the slack. That was the news that came through. Easyjet