Transcripts For BLOOMBERG Countdown 20141127

Spokesperson as the Parliament Begins to reign in Search Engines. A warm welcome, i am anna edwards. It has just gone 6 00 here in london and lets start with the oil story, the longawaited meeting is hours away in vienna. In the lead up to the meeting we have seen prices collapsed a four year lows. Ryan has been on the ground speaking to oil ministers, good to see you this morning what can we expect . I think if you look at the , clearly investors are not expecting a supply cut. We heard the oil minister of saudi arabia saying the gulf countries have reached a butensus amongst themselves none of them have been pushing for a supply cut so the fact that some of them have a united position suggest that that faction within opec is happy not to have that happen. You will remember the saudis had that meeting alongside the venezuelans, the mexicans and the russians earlier in the week and that failed to deliver a supply cut. There was this idea going into the meeting that there could be this grand deal involving nonopec countries like mexico and russia but no cigar. Iranians who lead the faction for the supply cut are making a lot of noise about and theyfor supply cut are not making that noise right now. All of that suggests that we will not get a supply cut, having said that it is important for opec, it is the x essential issue, to appear to be unanimous. You cannot rule out that there would be a symbolic or small supply cut or more likely a call for compliance, as you know the Production Target is 30 Million Barrels but they see their own Production Targets so maybe a little bit of a crackdown on all those countries producing more than they are supposed to. But a supply cut as i was the market does not see it happening. Opec meetings are about production but not just that, it is a gathering point for the Energy Industry so what are the deals being done on the sidelines . I dont know about deals but it has been interesting to watch the Iran Oil Minister who has had a packed schedule with executives lighting up to see him and of course they did not win any sanctions relief earlier in the week but nonetheless it is ready clear that all the oil bosses won a make sure they are in line and iran knows there in. I caught up late last night to have a listen. I met some of the managing liketors of Oil Companies aboutll and to discuss and all ofin iran them hope to lift sanctions and hope to work with iran very soon. Them mentiono hear the new ceo who has not been in the job for very long and he is on his way to russia today and it shows exactly how much these Oil Companies are thinking about new production like all the other Oil Companies really need the ceo ofing to see luke oil secondlargest oil he is worth just shy of 10 billion because he has a 25 stake in the company i have to tell you ive been coming here for years and he is a regular. A while back we opened a companyth a norwegian and for that reason we would like to return to those fields where we already know the geology and are already preparing. Unfortunately after the introduction of sanctions we left the area. Important to note that all of aree Countries Companies well aware of the sanctions and are just studying them right now. Maybe we wont see anything to dramatic would love to be a fly on the wall we will have a chance to go inside and speak with the ministers but i do feel there is a ground swelling of concern, i would not be shocked if we learned that the ministers will not wait another six months as a normally do because we have seen the price of oil come down very quickly. While they have been here in vienna they have enjoyed and had some important meetings. Hear what they have been talking about on the sidelines, views against sanctions against iran among other things. We will be back in a few minutes time talking to the Energy Expert of the mrl corporation. A bloomberg exclusive now, the senior Foreign Exchange and metals traders are among 11 people under investigation by the swiss finance regulator and that is according to people with knowledge. The regulator started proceedings against 11 current and former employees 15 days ago. No findings of fault heaven made against any of the individuals. In the u. K. Traders facing the benchmark rate might avoid being fined. The Financial Conduct Authority has missed the deadline to take action. There was a three year of limitations for Civil Enforcement actions in that time limit has passed according to one person familiar with the proceedings. When theyo be exactly knew about the start of these investigations. Google bashing is not on the agenda. According to german politician they voted on a resolution that would ask the executive arm to continue unbundling changes from other commercial services. Bloomberg spoke with a legal expert about what is driving the action. It is obviously not the first time the European Commission has put imposing penalties in a few years ago microsoft was in the cross hairs. I think when you see the way the eu looks at organizations is that they may attempt to challenge the dominance for a number of reasons, economic or political. One of the reasons might partly be is at the u. S. Firms have been so successful and grown in such a dramatic way that the european competitors are starting to keep up struggling to keep up so this might be seen as it attempt to get the European Companies to catch up during catch up. It has to be seen in a political context, a lot of discussions. In the has to be seen context of intelligence and data gathering and the power of the Tech Companies to hold information about eu citizens and possibly give it up to security agencies. Edward snowden came out with last year, european authorities are very sensitive to the privacy angle. Tois a general challenge u. S. Data, a political challenge but also an economic one. That was jamie from the law , lets bring in Caroline Hyde who has been following this story for us. Bit more on the politics surrounding this because we have one of the leading german politician saying this is not about google. This is politics at its barest. Two voices on either side of the atlantic shouting at one another trying to say that they are not bashing google for those in the United States and properly google itself are feeling pretty bashed right now because not this ise we evoked what it hinged on, a vote on whether or not we could see an unbundling of Search Engines, they have named google by name but he could have an unbundling of Search Engines that could be opposed to the look european legislator. Schwab who is one of the germans behind the vote and the proposal, 15 in total have put this resolution through and said , theyou are overreacting fact that we are using the term unbundling is in no way meant to mean that the eu is somehow becoming antitrade and antiu. S. Because it is all getting out of kilter. Unfortunately at exfo the same a potential split in google , unfortunately at exactly the same time, a potential split in google they dislike that an awful lot when i heard that basically you and i could message them. Perhaps it is a bit embarrassing now europe says you have to invite them from the u. S. Sites as well because there is a huge amount of work and you cannot tell the press when you have removed things as well. Found that they have kept routinely informing the press never something was taken down which defeats the forgotten path. Lets talk a little about when you where all these politics ago. Perhaps europe is just try to protect its own, rightly or wrongly . That is what is gathering a sense of urgency right now, the key concern that a lot of european politicians should be realizing that this is being interpreted that the germans in particular are perhaps trying to protect their own. This is a fascinating link for those who found that an open letter was written by a number of heavyweight german politicians in november and was sent to the European Commission asking the legislators and urging them to regulate internet platforms with platform neutrality, they want them to send up stand up to global actors and this is even more deafening in the knotted states for those who already feel the swirling views is already perhaps having negative effect on trade links that you are being motivated by politics and motivated to come up against u. S. Tech companies other than your own and i think at the moment is europe feeling that they want to be able to maintain their privacy and that they want to stop these accusations which have been investigated for four years now as to whether or not google is promoting its own other than rivals in the Search Engines and unfortunately this is all getting very political and it seems as though they are bashing google. That will have continued coverage as we go through the day, coming up on countdown we will go live back to vienna with the Biggest Oil Producers are gathered for the longawaited opec meeting. Our collapsing prices enough to push the opec leadership into action. The put that question to our next guest. That is in two minutes time. Welcome back, back to one of our top stories about the oil price and a collapsing price of crude is at the helm of the agenda at the opec meeting but no guarantee that leaders will cut output. The Kuwaiti Oil Minister says low prices are something his come country is prepared to deal with. Orwith a deal with 80 or 60 100, so we have to keep the market itself to accommodate the price that the users and consumers have used it. Back to vienna on the ground with the guests. Hello anna, it is a big day for the Global Economy and for of where opec controls 40 output and 80 of the reserves and what will they do Cornelia Meyer has been watching the oil market and having these opec meetings for a good decade. Think you for joining us, the obvious question is what are they going to do . Theyre probably going to do nothing or very little, it will probably stay will stay at current reduction but we will enforce those production levels. Say bye to give a minimal reduction what they will probably also do this a given how the markets are we will meet not just next june but earlier it so i think they might say lets me in february or march. Arabia oil minister holds most of the cards, white is he so happy to see those oil prices . He wants to see fair prices and also wants to see the market react, if you have been in the job as long as he has, he has seen high prices and low prices and this is not the first time the market has been oversupplied. Recoversen the economy we are very quickly up half a Million Barrels per day, when the u. S. Does better in china does more again and dont forget there is demand in africa and the arab states. Interesting that the iranians were making noise at they wanted to see a cut but did not want to make a cut in their own production and this has gone quiet the last couple of days. The iranians dont want to make a cut on their own reduction and fairly, if you cut Everybody Needs to cut. Is there a political factor . There is because weve come off the five plus one negotiations that put iran into the International Community and that is really what their key priority is, to get rid of the sanctions, to be seen as a team player does not hurt. Russians in town and they reminded everyone of 1999 when the mexicans venezuelans and saudis got after oil had dipped 10, and this time people got together thinking they would cut a deal but no cigar what you think of bringing in other Oil Producers to get some sort of consensus . If things get really bad, 10 is really bad. I am and edwards. Lets look at the Foreign Exchange markets. Veryryen, we have seen a recent pattern over the last few days. To thees counter prevailing trends we have seen over recent months and even recent years, counter perhaps to the Central Bank Policies. Boj of course in the middle of its record Quantitative Easing Program so very different paths were these two Central Banks. The yen is actually increasing this morning against all except three of the 16 major Currency Pairs on interesting move we are yen selling gone too far. That is the question traders are asking. And november 20 it was the strongest level we had seen since august 2007 and now it is down to 117. 36. Another story that we are these areoday bloombergs top stories, protests on the streets of los angeles. People have been protesting against the grand jury decision not to prosecute the white Police Officer Darren Wilson that shot and killed Michael Brown. That shooting happened in ferguson misery with the streets have been calm overnight. Michael browns parents have spoken to charlie rose. This was before we had a conversation with him about how to deal with authorities if you are approach. . Which was . Two ok, if they ask you to do something you have to do it. Tonight onsee that bloomberg. The regulator started proceedings against 11 current and former employees 15 days ago. The investigation is ongoing and no findings of fault have been made against any individuals. In the u. K. Traders facing penalties over the libel benchmark rate. The financial conduct of authority has missed a deadline to take action, that is according to people familiar with the matter. Ofre is a statute limitations to Civil Enforcement actions and that time limit has passed according to one person familiar. Two israelis were stabbed in jerusalem this week, the latest in a series of incidents that included the killing of four rabbis in a synagogue. Rising tensions in the city are scaring away visitors and hurting local businesses. Sold souvenirs in jerusalems old city for 40 years and he has seen wars and two uprisings, but things have never been this bad. Now, aboutng is bad the business. Or at least very little. Per man used to make 5,000 day and now he is lucky to make 300. Business is bad because sometimes they close the roads and sometimes because they are afraid to enter the market. Jerusalem has been smoldering since the summer when a palestinian teenager was burned alive in revenge for the killing of three israeli teens. Then there was gaza, recent attacks scared away tourists and locals. In better times the city would be heaving but look around there is hardly anybody about, many stores are closed and shopkeepers say the trade is the worst they have ever seen. On the morning we saw one small tour group. Terrible, oney cannot believe it. How much is business down . 30 . 95 down. Every days like this. Businesses is not very good and there are not many people in the market. People are scared to walk around especially in the market because it is an open place and there have been attacks here in the past. It is down and empty now. Officials hope the annual long winter nights culture festival which begins next week will tempt people to return to jerusalem but with violence and almost daily occurrence many are losing faith that things will improve anytime soon. Now we are just getting fourthquarter earnings from germanys largest chipmaker so lets get to those numbers, annette income at 181 Million Euros and that is against 143 million the previous year. A little bit below those was 16 s and the margin higher than the previous year. At report for sales came in 1. 8 one billion month that is ahead of estimates. A fairly mixed set of numbers in the Fourth Quarter and looking ahead this is been the focus for yearanalysts and the full for 2015 sales rising 8 so that will be of interest to those saying that they were expecting something of a conservative outlook despite a healthy structural trend across many of the markets and supplies. And some of the other analysts have an reading overead of these numbers, at barclays there talking about the segment continuing and increasing the number of cars that are connected to the internet and those cars being increasingly connected as well. Interesting trends in the car Morgan Stanley saying things get tougher and terms of comparison as things get more difficult as you start to come up those comparisons. Again many of these analysts talking about highend manufacturers being the key to this business. The exclusive interview with the chief Financial Officer later on this morning that is dominic joining bloomberg on the pulse. London, we are taking a look at women at the top of companies today, Angela Merkel has highlighted the lack of female Board Members in the company but where does the u. K. Stand and how does germany stack up . At ucined by the Lecturer University london. Germany has come up with a quota, how good an idea are quotas in this situation . Used as a they are measure of last resort, if we look at norway when they brought in their quota in two dozen eight this is about the number of policies the government had tried to introduce it did not make any significant difference in the number of countries are trying various things but finding that the increase is incremental sibling ringing in a quota is a way of saying we will make a step change. And they do specifically come up with resistance from businesses. Germany was saying that bmw does not believe in quotas. Andobody believes in quotas nobody wants to have to use them but if we cannot change the way most use other quantitative targets of some sort to make any kind of change so why would this be any different. In norway which we see as a particular egalitarian country we assumed that quotas would ease in but there was a huge resistance in the years running up to the quota. Since the quota it is not really talked about. Business as usual and nothing imploded. Hear whereult to using quotas at the top of business to tackle decades of gender stereotyping around many aspects. Talk about using numerical targets in many areas of business, why not say you need to look at recruitment and retention and make sure those areas are fixed rather than imposing quotas on everyone. Addressed needs to be at every single level so we need to make sure those things are happening but we are seen this for a number of years, we have had more women coming out of universities with degrees they go in at the bottom 5050 but very quickly the figures start to change and so when they are doing pretty well up to middle management but then it starts to go wrong. Many people sit and scratch their heads, is it to do with policies in their childcare that is something that many are focusing on. Childcare is one element but it is only one element and we find that women who choose not to have children still also really struggle to get to the top so as you mentioned this decade of old stereotyping and just not thinking that these are roles for women, did some work recently with women aside from engineering try to get more women into stem professions and interestingly i think there are two words that really justify trying to get more women involved in those businesses and that was the pipeline. Can seebusinesses you step back from this and look at it dispassionately and have no agenda just in terms of trying to get enough people with the right qualifications its a unique to broaden the Talent Pipeline or that reason. We know that women are extremely well educated and very well experienced and it is ridiculous that we are not allowing them to go through to the top so my argument for any kind of target would always be the Talent Management argument, we need to make sure that we are bringing the best talent to our organization and that cannot be the case if women are not led to be part of that group. And the conversations around the valley value that we should attach to diversity and they run their course . So, recently there was a paper in the u. S. Which was a of 114sytic review Academic Studies of women on board which conclusively shows a positive relationship to women on board and better accounting turns and between women on board in the two mainboard functions like monitoring and judgment. Argument hastive in thet to dead bed qualitative argument was never particularly strong. We have the german quotas now on the table and the u. K. Has the same conversation and the eu has a bigger plan. The moment the eu directive is going through its aim is that and the by 2020 all should deal to reach a target of 40 of nonexecutive ofectors or 33 in terms unitary board. There is a clause that says if as a company you can show you will get there on your on the new can opt out. Thank you very much for stay tuned for bloomberg this morning and we will hear from the ecb president and he will be the Central Bank Financial stability review and he will also be speaking to us later on this morning here at bloombergs of dont miss that. You can join the conversation and tell us what you think about women on board and google or what you want to hear later, find me on twitter. Coming up on the program i am naming names. New Economic Team and we will talk about the names topping her list. Theelcome back, now to charged lesson economy. Mean for brazils growth story lets welcome a member of the brazilian economist, anthony. Good to see you this morning. Lets start with the man who many people are talking about who is not simply just the new finance minister, the former head of brazil treasury, a lot of national experience. A right man for the job . His name has animated the markets, it is well received is coming straight from the private sector. Phd and he haso and theor the imf European Central bank so a lot of people are reacting positively to the name. What about the others on the table, were looking for a new budget minister and Nelson Barbosa has been mentioned as possibly in the lineup for that. He has a slightly different take on the priorities. From the newhd school for social research which could not be more different intellectually and he is associated a bit more with the developmentalists approach, but i think they are capable of working together, they have had similar experiences and government and their already apparently looking over the books and the budget seeing what they can cut and they have a direct line and will have a direct line to the general rather than go through the chief of staff. When itis her style comes to managing these people that she will put in charge of the economic handles on the economy . She let them get on with it or we shall be in the details, she has been accused of wanting to be her own finance minister, people say she knows a lot more about economics than people think she may not know as much about economics as she thinks, so the big question is will she let joe be the minister of finance and the path if that is any indication is that he knows his own mind and he will fight for what he thinks is right and he will probably would resign if there is too much pressure and too much interference from her so i think the feeling is he will be his own man, what is the focus going to be is a going to be fiscal responsibility because the budget was the largest and more than a decade, more fiscal discipline is that going to be something that the vehicle to deliver. I think she can deliver and it is very much a focus on fiscal discipline working the way up to a bigger fiscal surplus and avoiding the Credit Rating and any kind of downgrading or dealing with the debt, i think they can deliver on that and theyre looking at the first term in 2003 to 2006 is sort of a model, so be more like lula in his first time in less like jail in his first term. That is the goal. We couldnd of policies see coming through our and increase in fuel tax and reduce benefits for unemployment and pensions, how easy will those be to sell . They will be a bit unpopular to announce. We know something about selling austerity to the voting public and europe. Have the same experience here telling people they will get slightly less in terms of benefits is not popular i think the fast that she does not have to stand for reelection helps her and this is also the first year of her second term so this is the year to do those on measures and hope that in 2016 you can get back closer to the historical standard of economic growth. Thank you for joining us. The director of the Brazilian Institute at king college london. Card, the the report company that posted secondquarters numbers. We will discuss that next. Today im taking an action fully within my legal authority, the same kind of action taken by democrats and republicans before me. To spare the lives of two turkeys, mac and cheese. I know some will call this amnesty [laughter]. Obama hardening two turkeys for thanksgiving as he said mac and cheese. It is an american tradition as is the fact that the markets will be closed today in the u. S. Aboutquarter results in 10 minutes time, lets bring in Charles Allen from bloomberg intelligence. What do we expect . Dividends they said will not be a surprise if they do that but i think the real question is what are we going to see in the underlying growth, the q1 sales were very strong up 18 but we know it has not been quite so great in the Second Quarter samiti a little bit of a slowdown. This is all part of the transport discount isnt it . Yes, the single price and using consumables to attract people and get them to buy more general merchandise. That is how the model works that some should be worth more than a pound and others less. Though they have had some extremely good deals from the consumables, i think supermarkets will be more vigilant on that and they may find it just a little more difficult that some of the food and adjacent items. What about their expansion when you talk about growth and what they are doing there is the u. K. Story there called pound but they have other businesses outside the u. K. Tell us about those. They have island which seems to be quite successful with a price point is not quite so strict, it is 1. 49 euros but also do two or three euros. That is a departure from the Business Model. They could not quite hit the one euro mark so they have to do something slightly different and i think that will happen in spain with the last announcement and had been opened one day so we did not get a read on it so it will only be three and a bit months now but we make it a little bit better idea of whether it is really working down there. Bricks abroad or tacking into the actual domestic markets. I mean island in particular for the domestic market and spain if theyre going to be a success in spain they have to appeal to spaniards. Otherwise theyre committed to a relatively small number of stores. Tell me about the confusion that is created by plastic banks because you have to charge for plastic bags. We will start charging and wales are ready has in the impairment for a single price retailer charging five the for a bag doesnt fit into the strategy exactly so they are doing things like selling a whole roll of plastic banks for a pound hoping it will take them off to the other retailers we dont pay for the legislation that is supposed to be designed to sell less plastic bags could result in them selling 20 four pound. Or 25. Lookout for those numbers and more evidence about the growth of retail and the discount section with trial balance back at bloomberg intelligence, stay tuned this morning as we will hear and the ecb vice president. He will be giving the Central Banks Financial Stability review later this morning and will also be speaking to us, we will bring you his thoughts and you can find me on twitter of course if you would like to join in the conversation or anything on that. Countdown continues in the next hour we will be getting the latest latest on the opec conference. Crude and crashed. Oil slides to a four year low as investors worry opec will not agree to cut output. Breakthroughs, the vaccine is found to be safe and the company says it is the first step to making it widely available. Exclusive, metal traders are said to be among 11 people facing a fixed currency investigation. Google bashing not on the agenda according to one german politician as the European Parliament gets right to vote on whether to rein in Search Engines. Of warm welcome to the second hour of countdown, it is 7 00. The longawaited meeting of the worlds Biggest Oil Producers is now just hours away. In the lead up to the meeting we prices collapsed of four your lows and theres no guarantee that they will cut output to reduce prices. Good to see you this morning ryan, what do we expect to see today . I think if you look at the decline in the price of oil, clearly investors are not looking for a cut because of their is going to be a cut the idea is the price of oil would go up, so the thinking behind that is we heard from the oil minister of saudi arabia saying the gulf countries, a faction of four countries within opec have a unified position and none of them have been calling for a cut publicly, we heard from the iranians who were making noise for a cut going into this meeting earlier in the week, they leave the faction for a cut and yet they have gone quiet. And anything about the importance of unanimity and the opec, first for they function as a cartel and have to be unified in fact they have to bring in others this time around its they were trying to do, they had the russians and mexicans in town. Russian up with the Energy Minister when he was here and he come up with the venezuelans and mexicans when they caught up in amongst themselves they wouldnt budge and he shared the view. We now have investment from a. Where we had high prices and big projects at work costeffective earlier that are now online. The market has to work through that and we are seeing this happen now in cyclical development. We ventured into a phase with exceeding demand and the market will filter that out along with this project that is not Cost Effective. Price of 80 a barrel is not one that was described to any of the meeting participants as so critical that it requires urgent intervention. The bottom line, anna, there is a view in vienna or at least staye that if oil prices where they are or continue to go lower they will shake those shale producers out of the market and they will take them literally out of production because you think a lot of those shale producers and their projects are on economical and not Cost Effective at these lower prices. They believe it is those shale producers that are creating an oversupply of the market, so what you have is the geopolitical showdown, a game between opec and the United States, it looks like what will learn today from opec is that they are ready to bring it on, they are ready for a battle with the United States, like we saw the saudis kept pumping despite the fact that oil went to 10, that created an enormous a lot of pain in places like houston and theyre thinking now is they can create that same kind of pain not just in houston but places like north dakota where all the oil is coming to market. Of how the oil industry has changed since those days it will be interesting to see who squeals first. There is a gathering point for the Energy Industry more broadly so what kind of meetings or take place on the sidelines . It is interesting to see that despite tehran getting sanctions talk earlier in the week the oil minister has been very busy with oilproducing bosses and International Companies lining up to see him, clear evidence of how desperate they are to get into the markets. I caught up with the oil minister and he explained how busy he has been. We dont have that sound that we can continue, and a short space of a short three days have bp and shell has been here, luke whoand a billionaire ceo comes to all the meetings butuse no sanctions relief they are all very cognizant of the fact that there will eventually be an end to the sanctions and they want to curry favor with the iranians so when that day comes theyre wellpositioned. They want to be on the conversation when the day comes. Talked just before the date break about pound land and we are getting those numbers through from the discount retailer. Total sales up 15 versus the previous year, up 15. 4 at constant currencies. Reporterlying earnings interest taxation up strongly against the previous year, up 17. 5 . Pretax profit up 30 . Theylked about whether would propose a dividend for investors and they have done so the interim dividend of 1. 5 cents per share. Beginning to talk about the growth of the business with 28 net stores and their growing the store 566 stores and retail parks have been somewhere where they have been focusing and of course the International Expansion is in area a focus as well. The chairman saying they have strong momentum and that is what they are reporting in july and that is continued through the first half. The program is robust they say and their confident and taking the field to even more customers in the u k and a broad. Telling us they operate also in ireland and spain, they dont sell everything for a pound in spain with a slightly different Business Model but interesting to see that conversation around those discount businesses as we see pressure on more traditional retailers. We are also getting some news from sab miller and cocacola. It seems that they are going to be forming cocacola beverages africa. Bringing together some of their operations. The bottling operations and twice 12 highgrowth markets across southern and eastern ofica with annual revenue 2. 9 billion u. S. Dollars. Will ruvell result in the largest cocacola bottling in africa and the 10th largest worldwide with scales and resources to accelerate the market that is according to those is mrs. This morning. Between us two companies today forming the largest African Bottling Company they say. Eps also say this will be accreted. A story to watch today the foreignexchange metals traders are among 11 people under investigation by the swiss finance regulator according to people with knowledge of the matter. The regulator started proceedings against 11 current and former employees 15 days ago and no findings of fault has been made against any individual. In the u. K. Traders facing penalties over the benchmark rate that might avoid being fined. The Financial Conduct Authority has missed a deadline to take action. There was a three statute of limitations. That time limit has passed according to one person familiar with proceedings. Another story where watching today there have been protests on the streets of los angeles and these are live pictures from l. A. Were people have been protesting against the grand jury decision not to approach prosecute Darren Wilson shot and killed Michael Brown. That happened in ferguson missouri where the streets have been calm overnight. The focus switches to other cities around the u. S. Coming up on bloomberg later this morning we will hear from the European Central bank vice to say what the ecb might do in the december meeting and that inflation number will be released friday so plenty to discuss so stay with us for that that is coming up later during programming and you can join the conversation on twitter, let us know what you think of the show and what you would like to hear, what should the ecb do . Conversation and the conversations where having on the show today. Up, what do european lawmakers have in mind for the future of google. The European Parliament votes today a new measures which might restrict Search Engine companies. The german politician behind the boat says he is not trying to bash google, here is the bloomberg guide which is behind , it is eu enthusiasm obviously not the first time the European Union has look to imposing i think when you look at the way the eu sees big organizations such as google and microsoft and ahoo is that they may be tempting to challenge their dominance for a number of reasons, economic, political. One of the reasons might partly be that the u. S. Firms have been so successful in this aerial have grown their businesses in such a dramatic way in a fairly deregulated internet economy that the european competitors are struggling to keep up so this might be seen as some as an attempt to give European Companies a chance to catch up. To be seen and a political context, there is a very large trade dale being negotiated between the eu and the u. S. With a lot of political discussion. It also has to be seen in the context of intelligence and eight at gathering in the power of these companies to hold information about eu systems and possibly give it up to security agencies and in light of whatever Edward Snowden came out european authorities are very sensitive to the privacy. Challenge and a political challenge but also an economic one. Jamie giving us his thoughts. The legal perspective on what is going on here in the Search Engine companies. Lets get more on google challenges. Us from singapore, give us your able take on what is happening. I agree with the peace that we just saw which is that it is largely Apolitical Movement and i think that is quite interesting because it is pr, i think it is political and an attempt to influence the regulators a bit but im not sure that it exacts any practical different so i think it is an attempt at the eu to look like they are taking a stand whether it is for consumers, eu residents or whether it is for the countries within the eu from a Corporation Tax point of view. The openingree with piece which is this is just a political move. Many conversations with Technology Businesses around europe, do you come in to contact with any businesses which say they would be doing better if they were pushed a little higher up the Search Rankings . Sure there are a lot of people who think that and and there were probably similar concerns about microsoft a few years back when they had bundling situations and products and services with windows but i think for the kinds of people that i talked to mostly and when i think about innovation and where European Countries and countries based in europe have an opportunity to compete, it is actually better to see google doing so well because that company did not exist some years ago and it demonstrates there is an opportunity for innovative startups and entrepreneurs to see something and do something that is so monumental. So i hear less complaining even though i am sure it exists, and ande a lot of rankling furloughed browse about why the eu is getting involved at this level especially if it cannot exact any practical chains. Casevember the microsoft and were microsoft was sold to unbundle the media player from some of the software products, does the eu make the right decisions in these cases, does it come down on the right side of the line or do you think they are focusing on the wrong place in the first place . Say but i hard to think what generally happens is the eu comes down hardly and thely to one end of spectrum and then what generally happens is a compromise or settlement in between. From that point of view maybe the eu has learned or is taking lessons from the past and recognizing that has to take a really strong view because that will probably get diluted in any kind of settlement or situation that actually transpires so maybe that is why it is really exaggerating its position in this case or exaggerating its influence as well. Do you think of google was not so strong and search in europe, because it has the biggest area in europe than a dozen the u. S. , do you think of that werent the case it wouldnt be having some of these conversations and are there any european search businesses is there room to do Something Different to what google does. I think there is room and i think you will see different types of search from different verticals and different niche is within the internet coming up to demonstrate that they can do things better than google on a broad basis, whether or not there will be significant european competitors is hard to say but i think it is more interesting why the eu is thinking of bringing it up is less about giving potential entrance the opportunity to compete on search but actually other type of business is to complete compete within the search and some of the other businesses that google bundles with the search products. That is where probably feels like google coming from a search point of view with too much of a hold on Everything Else as well when youre looking up any kind of directory listings or commerce and looking at sponsored advertisements and listings and i think that is probably the problem the eu had because then you have may be tenfold or 100 fold opportunities for companies to compete and it is not just about search. Has been having many conversations about the right to be forgotten and they wanted to enact changes to the website to act on concerns if they wanted articles written about them in the past to be removed from searches, google has acted on that but many voices in europe are not happy with the way they have acted and are not happy with how that is being applied to other parts of the world, are we going to see further fields of discontent between google and the eu . Have we heard all already . Are there more to come . To answer your question there is more to come because as google become stronger and stronger in other areas maybe it will be video that is next or perhaps mobile. I think you will see it at loggerheads with the eu and that is probably the right thing to do which is to continue tracking it and make sure that it does not establish too much of a position but on the other hand things like the right to be forgotten im not sure that will notuch further because i do think the eu is unique in its position about that and i think in terms of trying to enforce that to be more practically unforgiving it is probably not going to happen. Eileen great to see you this morning. 21 minutes past seven, coming up violenceogram how the in jerusalem affected trade cities trade and businesses. Two israel ease were stabbed in drew slim earlier this week the latest in a series of incidents including the killing of four rabbis in a synagogue. Rising tensions in the city are scaring away visitors and hurting the economy. This man has sold souvenirs for more than 40 years. He has seen wars and two Palestinian Uprising but things have never been this bad. About the business, no business there. Little, thist very menus to make 1500 per day and now he is lucky to make 300. Sometimes because they close the roads and sometimes because they are afraid to come. Jerusalem has been smoldering since the summer when a teenager was burned alive in revenge for the killing of three israeli teens. Then there was gaza, recent attacks and scared away tourists and locals. In better times the via dolorosa would be heaving but look around there is hardly anybody around and many stores are close and shopkeepers say the trade is the worst they have ever seen. In the morning we saw just one small tour group. It is really terrible. How much down is business . 20 . 95 . Nobody, look at the market it is empty. The main market has also seen sales dropped by as much as half. Business is not very good, there are not many people in the market. Especially the market because it is open and there have been attacks in the past. It is down. Officials hope the citys annual long winter nights culture festival will tempt people to return to jerusalem but with violence and almost daily occurrence many are losing faith that things will improve anytime soon. A short break, coming up on the program as opec managers gather and europe where to invest in an era of Lower Oil Prices . More when we come back. Welcome back to countdown. Im anna edwards. Lets take a look at the Foreign Exchange markets. We have dollar yen for you. The dollar has been weakening the third day against the japanese currency. It goes downtown the Central Bank Policies of the central bank heres. The b. O. J. In the middle of a record quantitative easing project and the fed has moved away from theirs. Goes against moves we saw in july when we saw weakening over the japanese currency against the dollar. That is yens selling trend gone too far . Seems to be the question that investors are asking this morning. Remember on november 20 we saw dollar yen his 1. 1918. The lowest since twen. The parents of ferguson teenager Michael Brown have spoken to charlie rose about their sons death. Shot by Police Officer Darren Wilson. As his father said before, he had a conversation with him about how to deal with authority if youre proacht. Approached. Which was . Who was obey, basically. If if they asked you to do something, youre to do it. You can see that full interview tonight on bloomberg. For the First Time Since july, chinas central bankers refrained from selling repurchase agreements. They didnt conduct any Market Operations in todays auction window. Last nopt bank cut Interest Rates for the First Time Since 2012. The further loosening of Monetary Policy which todays news represents comes as a report showed industrial profits fell the most in two years. Chinese stocks rose for a sixth consecutive day on the news led by financial and energy companies. And there is one quick story breaking this morning in the luxury sector. Mulberry has a new director. In october they announced a profit warning saying trading conditions were more difficult than expected. No that business has had no shortage of headaches over the last few years. Well see what comes out of the opec meeting in vienna today. Crude slid to a fouryear low with traders concerned there wont be an agreement on cutting output. Alan, thank you for coming in. Have ground some coffee . I know you were on the search for some earlier. Lets wake up to the conversation about oil. Do we think we will get my action from opec . Your reporter is in a better position than me. He is live there. I was listening to him. The markets seem to be discount nothing kind of deal. I the saudi minister looks at it as selfdirecting. It is a very bullish factor for the world economy. Therefore you get more growth. So there is some selfcorrection. Shortterm forecast on oil, we kind of avoid. If i have toyear if you look at the fiveyear forward, it is much more stable in the region of 8090. Some kind of measure of values. Maybe there is an indication of value in oil but really shortterm, well go with the saudi oil minister. How does the big that we have seen in oil prices, how does that filter its way into your Investment Decisions . You have been suggesting were going to see low inflation the future. That looks increasingly likely doesnt it if Oil Prices Stay down . Youre right. Ive been on here many times banging on about the bank lending picture, which is so unusual to have negative bank lending in europe and it has been negative for sometime in the u. K. That is changing. The u. S. , forward looking in europe. The e. C. B. Version of the feds senior loan officer survey is pointing to some credit coming back. But the mathematics of commodities are going to weigh on the e. C. B. Just mathematically, inflation is going to fall. People with look beyond it. It is another headache for draghi, isnt it . Does it influence where you put your money . I know youre overweight equities including europe, emerging marks and japan. Would you go so far to say we see them falling. This has such a positive unless on consuming nations. You go and buy those equities. You to look at the value. As you remember, we bought russian equities. Because of the tremendous value. That even by russian standards. And the Energy Sector is discounting a lot of bad news. Sometimes it is best to go against trend on this. But it is bullish for the world economy. Whether it is bullish for those particular stocks, you to look at the price that you have to pay. Just because they look like good value doesnt mean they ont look like good value six months . It just depends on how long you want to hold them for. Generally you want to we tend to devalue orientated work where we can. Not all values work out. Russia obviously is not working out. A great study the other day is that the dividend yield is higher than price yields in russia. This has happened one time before. One time it was argentina. The other eights times, it was 70 . These evaluations have a tendency to work out. You to be patient. You to have confidence that the dividend also keep coming. Of course. Actually the market itself is held up ok. It is all about the currency. So there is an element of value that goes to the currency as well. Should oil go to 30, 40 . This is not going to work for quite sometime. Lets talk about things you do like then. You say the global financials. Do you think was the litigation risk surrounding libor and f chnch . Has that gone away . There are bigger things on play for here . There are big finds everywhere. Again, there is an awful lot of value. What we like is fantastic value in europe. The prospect of dividends came back eventually when they get through this. We like the enact bank lending is increasing. Japan, fantastic value. Very high dividend yields, price ratios. Wherever you look, you see some decent value with financials. And yeah, so again, going without our value in terms of investing, that is the you are seeing eurozone banks lending again to some degree. Are we back to are they performing that function as a result of get there you go all the stress tests and the asset quality reviews . Has that given you more confidence about them . Partly that. The e. C. B. Survey, it is actually pointing to some real strength in terms of banks ability to lend and potentially corporations and individuals willingness to borrow. Anyway. Bond asset the prospect once they get through this, the decent prospect of dividends to come through. And value. Yes. Thats what youre buying. E stays with us. Stay tuned for another conversation after a short break. Coming up, rapid progress in the fight against ebola. Some are claiming a breakthrough. Details next. Welcome back. Im anna edwards. Lets take a look at some company news this morning. Samsungs heir is making his mark on the company proposing 8 billion in deals. He has taken the helm while his father recovers from a heart attack. Shares fell the most in 19 months in tokyo trading after it was considering selling its stake in the japanese dairy drink proproducer. The biggest drop since 2003. Danone has held discussions about a selloff according to people familiar with the matter. Glaxosmithklines ebola vaccine has been found safe and effective in the clinical trial. That is according to a report in the new england journal of medicine. The report is an initial step towards making the vaccine widely available as the Ebola Outbreak in western africa continues to spread. Joining us for more this story sam, very good to see you this morning. What does this mean for those currently affected by ebola . This is the first step in developing a vaccine. What they have done here is take an small number of volunteers that are not necessaryfully the african region, in areas that are affected and tested the ability of the vaccine. The most Crucial Point being is it safe in the small number of. Ople it was tested it has induced what we call an immune response. You dont know whether that was protective or not. Only larger trial also tell. This is a small trial. 20 healthy adults in this trial. So what are the next steps then . Is it more trials broadening this out . Absolutely. In a normal world where you have an infection where you dont mind people catching it, you could test the effectiveness of the virus in a test environment by giving the people the infection. Youre not going to do this here. The best thing you can do is a field study. You immunize x number of people, frontsline workers, doctors, nurses and look at the incident rate of ebola, infection in them. Hoping you can compare that to what youfled have expected. That sounds like it takes time as well. It will take time. More people you vaccinate, the more chance you have of getting an analysis that is meaningful. It is just a matter of time. You have to go out there and vaccinate a number of people and cross your fing hears the none get it. We know this has produced an immune response. That doesnt necessarily mean it is effective. It is like building an army of 10 Million People and never testing them in a war. You have to put them a war to find out whether it is an effective army. That is the only way you can do it. You can have guesses but until you have tested against a viral infection that takes place, you will not know. Once we hopefully there is an effective vaccine produced at the end of these trials. How string represent authorities going to be to give approval for the vaccine . The approval part of it, i think that will not be too difficult. If it is safe, and it seems like it is protective, you have to go with it. The question then of course becomes can you get it ascombroose africa, to across to africa to people who need it . In england you know we go for a Flu Vaccine Campaign every year. A lot of people still dont go for it. This is a developed country. Imagine in an underdeveloped or a developing country, it is a big challenge. The logistics around delivering healthcare in africa are going to come under the spotlight. What you snow that you can hopefully protect the front line person nelling. That personnel. That means that the people who treat these patient also at least be safe. That should increase the ability to deal with the infection but if you want to contain it, you to get people accepting in a system that is able to vaccinate their population. Clearly there is a humanitarian need for this kind of work pob done. How significant is it for glaxo . It just proves that Pharma Companies can be focused on developing a product for the good of mankind. This is unlikely to be a major revenue generator. It is possible that western countries would want to own stockpiles of this vaccine against any future outbreak or a bioterrorism use of this virus. Those are hundreds of millions of dollars. Maybe a billion or 2 billion contract. It is a drop in the ocean for a company like glaxo. It is a good thing they are doing this. Sam, thank you so much for being here. Youre looking at a live shot of the city of london where equities are set to open up in around 13 minutes. After the break, well take a look at what will be driving todays trading session. Stay with us. We have some big thanksgiving news for you and you wont be surprised to hear it involves a turkey or two. Stay here on countdown. 7 47 in london. Today im taking an action fully within my legal authority. [laughter] the same kind of action taken by democrats and republican president s before me. To spare the lives of two turkeys. Mac and cheese. I know some will call this amnesty. [laughter] president obama pardoning two turkeys for thanksgiving. Mac and cheese he says. The markets will be closed in the u. S. Today. That is another tradition but the european markets will be opening. I think that was cheese we saw. I cannot vouch for the wellbeing of mac but im sure he is fine. The arguments over google between the u. S. And europe are growing louder on whether Search Engines can be split apart from commercial ssts. Google has caught itself in so many politics here in europe. It has. It is coincidence that it is all happening on the same week. All of this p. R. Is coming home to the United States and they feel google is being bashed even though the European Parliament are saying they are not setting up to bash google. Perhaps you can understand why. First of all, we could see members of the European Parliament asking the e. U. s executive arm to consider raking up google. It is called unbundling Search Engines from commercial services. If it is not binding but it is a recommendation that they cant pass legislation to get google to what is it many people feel promoting its own services over rivals, it could look to break them in two. This is a fouryear investigation that has been going on about accusations. Google, the criticism is if you type into google video, you immediately get google video. You get youtube. You have to scroll down to find bings version, or yahoo video. Will they potentially be split up . That is the big question. This is what is ring u. S. Ears. On the second courant, yesterday, we had the privacy of regulators in europe banging down on google saying you are right to be forgotten. You and i can say when you type in our name or it is out of date, or it doesnt make sense. I want to be removed. Google is only removing it in european sites. They are saying remove it from google. Com as well. This is very hard work. European officials are saying when you remove those pieceses dont tell the International Media about it, which seems to be something they have been critical of in the past. So that is a number of fronts where they are doing battle at the moment, you mentioned how the accusation is that googles search results promote its own products ahead of others. Of course european regulators are not concerned if it is prioritizing over bing or yahoo . They are concerned if it is european businesses losing out. That is the constituency that they represent. Are they just protecting their own . This is what u. S. Politicians probably have every right to start having suspicions of. They feel this is europe being eurocentric and trying to protect its own. Germany has been worried of the dominance of google in terms of market power when it comes to moving in on the industrial area. Remember, google does have cars. It puts itself front and center f the auto sector. Google does apply certain devices in that respect. They are worried about how will this affect siemens, volkswagen . How will google, how will that affect the future of germany, team that with fears of u. S. Espionage. Germany has been worried about u. S. Tech companies and google has been the focal point of their concern. A lot of concern in the u. K. About the u. S. Tech company this week. Accusations, of what various Tech Companies in the u. S. Could have done if they had known about things to pass information over to the u. K. And really throws into the spotlight the role of these Tech Companies and to what extent they need to work with those Law Enforcement agency. This is something that is going to run and run. The conflict between google and europe. We watch that with interest. Hank you for bring us that story. Stay tuned. Well they are a Central Banks Financial Stability review. 7 55 in london. Five minutes until European Equity markets open up. Looks as though were set to have a flat to positive start. European equity up around six points. We had some moves from china overnight. On the move is up next. Welcome to on the move we are Just Moments Away from the start of european trading. Here is what we are watching. Crushed. Getting Oil Continues to slide ahead of the opec meeting. Rent is down almost 5 . Butre live in vienna investors wont cut output. The ebola breakthrough. Glaxosmithklines vaccine is found to be safe. The company says it is the first step to making it widely available. Watching date of this morning. We are moments away from breaking numbers out of spain. We will get the growth readings as well as inflation data. Later, we are watching unemployment figures. That is what we are watching this morning. We are expecting later volumes today as the u. S. Celebrates thanksgiving. Markets here in europe are just opening up. Lets check in with Caroline Hyde. Thanks, francine. A very happy thanksgiving to all those in america. Wes have a look at just how are doing and european trade. Pretty flat at the moment. We are expecting a little bit of hope in the outset of todays trade. Speech from mario draghi, ecb president. Could he give further indication of stimulus . Esterday we had victor constanzio. He said the