Transcripts For BLOOMBERG Countdown 20141205

France Business Leaders get together to push a positive message of the economy ful. Quotes welcome to countdown everybody. 6 00 here in london. Speak to newsmakers from bmw would car world, cars as easy as a oneway bike trip. Is a big day for fiat. The king ofting spain. The European Central Bank Governor refrained from quantitative easing in the eurozone but pledged to reassess the situation early in the new year. With inflation at a fiveyear , will action come too late . Here is what he had to say. Maybe they will start doing qe, but it will be too little, too late. , i think this would be over two years. They also have the right fiscal policy because qe works in the u. S. And u. K. Because we have monetary stimulus and you have backloaded fiscal consolidation. , they call the slowdown, started doing fiscal tax increase. You need to have fiscal stimulus in the eurozone. This will not be enough, you have to have demand. This will come too little too late. Today is at dartmouth professor of economics. Thank you very much for joining us. Too little too late says nouriel roubini. The way alike to characterize this, the bank of england started to cut rates in october, 2008 and it took us into march, 2009 to work out quantitative easing. This is six years and counting, worked out. You must be joking. We have deflation, we have overly tight monetary stimulus. What are you doing . And try to push their currency down, what do you think everybody elses going to do . The United States mint a clear they are watching the currency. Have first the plunger a really long time ago. Definitely too little too late. You a big believer in the values of quantitative easing . On tanktaking action Balance Sheets. Cutting Interest Rates and doing qe. I have the interview that bernanke did and they asked what would the point have been if the fed had an active. Counter factual is huge. In some sense, you can look at there is somefull deflation coming. 10 countries are in deflation are very close to it. This is not good. The stimulus was hugely important. There seems to be Division Within the ecb. We intend rather than expected Balance Sheet to grow to early 2000 level. They cannot agree on that. Imagine these. Firmse very competitive and trying to adapt the circumstances of the world. There are few people who disagree and we cant act. So, what happens from the business world, the week go to the wall. An interesting way to describe germany. The ecb talks about not needing consensus. Is that really true . You sat on the policy committee. Do they need consensus . I dont know if they need consensus. I was on my own. I think they need to learn and realize that you need to act. What is the danger of not acting . See, what aree the dangers of acting. The positives there are so strong. Are found to be not as palpable. That is the point. Morertainly would have got bang for the buck. For goodness sake, act. Was it like being on your own . You are obviously restricted by this. Not really. Being the it like sole flag bearer for the viewpoint within the committee . Important,is very you have somewhat different views. The bank of england has the census now. Are you right or not . That is the question. For you right . Im not going there. President , 1. 2 billion euros is how much she bid only last month for portuguese assets herself. She wanted to buy Portugal Telecom holdings with actually is the Holding Company that owns a Minority Stake in the whole of oi. This could have been a way of luring the telecom shareholders. Actually, i dont want to hive off my portuguese assets. I want to get cash right now and they want to stick and my overall interest. Along, does get rid of the portuguese assets and focuses on brazil, she no longer wants to be buying into portugal Holding Company. You have got to reach 7 billion. We know qualitative easing. It wasnt going anywhere. The numbers just get bigger. Caroline hyde with the latest on that Portuguese Telecom story. One of many we have been talking about. Join us on twitter. Follow danny, follow anna, follow me. Tell us what you think about what danny is saying. Go one. Or whatever else. To follow us all on twitter. Give us your twitter handle. Todays company news, very quickly. A 1. 2 billion round of Equity Funding to boost International Expansion for uber. That gives the company a 40 billion valuation. And half billion dollars in funding since its debut in 2009. The chief executive says the company is in nature menace growth period and could create more than a million jobs worldwide next year. Capital levels exceeded requirements. 9. 2 ommon equity ratio was , which is above the 7 required by the Portuguese Central Bank and 8 required by the ecb. A lenderes how well can install losses. They were once the biggest lender by market value. The central bank moved most of this assets. The bank scrapped a shareholder vote on bonuses after signaling they might fail the stress test. After theurged lenders said it would be appropriate to ask shareholders to vote at this time. The chief executive would not be surprised if the bank didnt meet the minimum Capital Requirements come december the 16th. The cooperative a collapsed after having to raise about 400 Million Pounds to plug a hole in its Balance Sheet. Minutes past 6 00. We will check on the health of the Worlds Largest economy, u. S. Payroll numbers and the unexamined rate i do out. Than 200,000re jobs in november which would make it the strongest year for payroll gain. Thats head back into the conversation. So, the job creation machine in of 10. , mark set they have been eight or nine, doing extremely well. The reality in the u. K. And the u. S. Is that there is still no wage growth. We have seen unemployment falling, the way i characterize rate is aemployment statistic telling you what is happening in the late market. One of the big things in the u. S. , we have masses of inactivity. People left the labor market and the big question is permanently gone or are they really working to take jobs . My view is the cyclical kind, masses of an activity will come back to the labor market once there are real jobs there. That is why theres lots of pressure on wages. The numbers i will be looking at is what has happened to wage growth. Said thelen has numbers she will focus on his wage growth. Will it get anywhere in the 3 , 4 range. The time and cost index shows private wages and salaries moved period. E last we have to remember that these numbers are a little noisy, so we can have little blips but a number of 2 is approximately what we have seen for the last five years or so. Few months with the rates are around 3 before the federal act. We will be watching the inflation rate and watching what happens there. The chances of a rate rise are very long way away. Until we see wage action in the u. S. Lets focus on one of them, the outcome of all of this will be wage growth and i will be focused on that. When will the fed cut rates . This depends on how the data looks, if we start to see really strong wage growth coming, then we will see talk about rate rises. You will take talk about the u. K. Economy. He will cast his eyes over the statement happened a couple of days ago. Of thechancellor exchequer George Osborne outlined his statement this week and it seems to be leaving some of the heavy lifting on the economy to mark carney and the bank of england. Lets bring in our guest, Dartmouth College professor of economics. Wages crucial in the u. S. Conversation, crucial to the u. K. We have had numbers in the last 10 days or so which suggests that the earnings we have a this point have been severely upward buyers. It appears earnings in small forms are much less than we thought. There is fertile evidence of wage growth, particularly the national statistic. The evidence appears to be that their real earnings are vomiting. They have very very low rages. Real wages are down, they are down about 10 . That we havehing an expected. Going forward, how do you restore these peoples standards of living . Little or nothing to say that will happen. A productivity puzzle. It is a really big puzzle. Essentially, the forecasters are assuming it gets sold. We dont get told how it gets sold. Growth inbig employment and relatively little growth in output, so the output for had hasnt moved. It per capita is below where was at the starting level. It is a major puzzle. This depends upon the view that that gets sold. Forecast and that looks pretty disastrous. Low levels of output and gdp continuing to rise. So, we dont really know how it gets sold, governments keep saying it will get sold but i would say it was like, i havent got it 10 so lets just assume one. We are assuming that this recovery looks like other ones. If you look back at the forecast, what theyve said is within 18 months with this return back to some pleasant trend and that never happens, it keeps getting pushed out. Every time the forecasters come in and say it will be back to where we were, that simply hasnt happened. At some point, you think that learning will take place and maybe we will not get back to that prerecession trend. It was probably unsustainable. This was a problem for central bankers. This is why you are saying that rates will stay low. Is that now a rolling target . The budget, can you say that . I think so. If we go back, the real standards of living havent risen. People are struggling with the earnings. How can the bank of england raise rates . Think what he would do to people who pay mortgages. Think what it would do to small firms that cannot get capital. It would raise the cost of the capital. Withf these people variablerate mortgages, it is hard to see how the bank of england can raise rates. This is a fiveyear rolling target. Throw oil into the mix. This has cropped up. Such big moves in the oil price. The boost to the u. K. Economy . Erhaps, weighing on inflation it has been a fall in the oil price but i will advertise. I like the bloomberg commodities index because it is not that we just see a fall in oil prices, to not the same degree in Commodity Prices. ,learly we are seeing inflation disinflation, inflation in various arts of the world. People are voting for rate rises. Inflation is so low, this is really quite remarkable. Stat each to out other. You have look back in history and you have got the stats of all stats. National institute has produced data showing us that this has been the worst recovery in 100 years but there is some great economic historians i have been talking to and i have two great statistics. This is the worst recovery in 300 years since the south sea bubble. Theres never been one that has taken so long and it is the worst in 650 behind the black death and the south sea bubble. A recoveryer seen like this. The recovery in 2010 was following the natural path of every recovery has done and then they just stopped it. This is the worst recovery in 300 years. , beat bad. Tanks for joining us. Beat that. Thanks for joining us. You might take a taxi but bmw would like to give you another option. We will hear more from Graham Greene after the break. Stay tuned. We will be talking to fiat from their factory in barcelona. Welcome back. Lets look at the Foreign Exchange market. We look at the dollar version. The dollar heading for the seventh weekly gain. It is up 1. 2 this week. Into the sevenyear high. The big number is the u. S. Jobs number. The u. S. Employers have made 230,000 jobs in november after hiring 214. 200,000 49 straight months. That will be the stat of the day. Corporate rank rob see. Seven weeks again. The firste ¥120 for time since 2007. Sam walsh spoke to bloomberg little bit earlier. He rebuffed the idea of a merger. A deal which will create the worlds biggest mining company. 2014 has been a tumultuous year for miners. Rio is the second biggest producer of iron ore. This is the lowest since 2009. An economic slowdown in china and the slump in demand has forced several miners to cut costs. Some think that this makes it right. They will not deflect his plan to get more cash to investors. U. K. Takeoverer rules. The potential. At the end of the day, it will be decision for the board, not for me personally. This,y, when you consider it would be a whole raft of things to look at. Point is very very easy. I think the key is the a greatty and also is product. How does this impact on your ability to sell cars in the u. K. . They said that for every one car , 32 cars are not. You having to bring out this type of product out of necessity because this is happening around you. How does it shake up . We are authorized in seven cities around the world including san francisco. When we find is that this is used more than six times a day so that six individual journeys can have been six individual cars before. The advantage is that you can pick up from point a and dropoff at point b. You dont need to worry about the journey home. This is a relatively young product in the market. London experience is very important, it is our first true megacity and i think we will learn about the dynamics of customer behavior. What we see is that they tend to be and a younger target audience. It is opening the brand up. We dont know whether those viewsses, those younger where times are economically easier. Model,ey stick with this will they prefer to do things this way . That is a long way in the future. That is very embryonic and we are gain experience all of the time. We are massively successful in the markets we are in. It gives us a real insight into the behavior. Theyre kind of journeys there making. They charge per minute. Thew do you compare to competition. It is very much customer choice. You simply pay for the time that you drive. I would allow you to use the car outside of the zone, if the car is an active on a much reduced rate. What were offering is an incredible value proposition, a previous service. You have your own space and a great car. How do you ensure the car from everywhere across the city . , will you be doing the same . The great thing is it is a partnership. We had to build great cars. You can see where the knee can track where the cars are. If you see it is part for time, then we will also move products. How are things going . We just talked about the wage growth in the u. K. , how will that play into how your business is performing . October is more than 9. 4 . We are enjoyed a lot of success. That comes from the exciting new products. General, the markets are very strong. Remaine Interest Rate to where they are, it will continue to grocery only. Thank you for joining us. Books and you can follow us on twitter. To join in the conversation. Tell us what you think about this new strategy. Do you like these . Give us your thoughts on all the news we are breaking today, big news from the chief executive officer of rio tinto. Coming up, well go live to paris as french Business Leaders gather for the bank of france summit. We are there with exclusive interviews. They never react normally. The numbers we should every day. I have no reaction. Is to fight and fight against in order to recover. Economy. Hat the french lets stick with the french theme. Business leaders are tired of criticism about their economy which has barely ground. The Largest Company to organize to fight back. The paris conference is aimed at showcasing strength in the your regions secondlargest economy. We are at this beautiful building in paris. This is boosting the image. They have barely ground. Economist. Hief , this is to reassess new stimulus measures for next year. , they will start buying this. A big shot. It takes time to do that. Growth,ices mean more this is a very big shot. They have to take time to see what happened. We should not expect any new measure before march. Before march next year. Fighting french bashing. The economy minister opened the conference yesterday and said that the french are afraid of what is your reaction . Looks and depends on what french youre looking at. Knows about youth unemployment which is about 35 . They know the budget is in trouble, they know the pensions might be in trouble. The state of the pension system, the labor market. Unions, political parties, parliament, they are very much more conservative. To convinceis not your opinion. We have very conservative trade unions who had negative reaction to labor markets. Unemployment numbers yesterday, 10. 4 in the Third Quarter, the employment numbers have actually risen every month. Do tothing france can fight unemployment . Profitability, the return on capital is half the average. This is a disincentive to invest and get more jobs. As long as you dont take the measures aiming at stimulating level goes back to normal , we have this massive underinvestment. Is the labor market really something that we can reform . If you dont reform the labor france,for 50 years in we have been increasing more than than productivity. It is just killing the profit margins. , the keep shrinking Companies Keep investing. This is coming from the labor market. This is 75 of the labor force. These people are very very well protected. They can get increases. The European Commission has given france annexed to three months to seek their budget. They expect to be at 1. 4 of gdp. Are these going to help . Issue is in the medium term. There is no way that you can correct this if you dont change the technology. They are saving money by small amounts. You end up with being able to cut spending. More to to do much much correct a look financing. You have the strategy of what the state can do. Many thanks. The chief economist from paris. Back to you. They tend to bloomberg, we will have more interviews throughout the morning including hub us chairman. Coming up, james bond is , that is secret agent our pick of the day. A 1. 2 billion round of Equity Funding. , more than double its valuation from june. They have a total of 200 dollars since his debut in 2009. The chief executive said the company is in a tremendous growth and could create more next year. Ion jobs the bank has emerged from the collapse reported capital levels that exceeded requirements. The common equity ratio was 1. 2 . , the ratio measures how well they can absorb losses. Biggest once portugals lender by market value but was bailed out in august. The move most of their assets. Cooperative banks scrap the shareholder vote on bonuses after signaling it may fail the stress test. Bond yields surged after the lender said it would not be appropriate to ask shareholders to vote at the time. The chief executive added he would not be surprised if the bank didnt meet the minimum Capital Requirements come december 16. Coop nearly collapsed after having to raise about 400 billion pounds to plug a hole in its Balance Sheet. Lets have a look at some of the newspapers this morning. What are you going to take us . Is back. You didnt get the call once again. Bond name. Latest spectere. They are thinking that maybe blow felled as a character could be back. We dont know if he will be blumenfeld. Maybe he will be back as a batty. These are the other characters. This will be one of the bond girls. And monica bellucci, the italian actress, she will be the oldest bond girl at 50. They lost it yesterday. I think it will come out next october. There was a live broadcast of this of this announcement. What was the first one you saw . Like something with sean connery. The first one i saw was the spy who loved me. Elgin marbles moves out of britain for the first time. Part of them have made a secret journey to russia. This is absolutely fascinating story. They have left london for the first time ever, in particular this culture that you see here. Of aat a time when fears new cold war between the kremlin and the west are at their height. To the statue of the greek river god. It goes to st. Petersburg where 250r celebrated their years. They were taken by the pantheon. The greek government has one of them back for a long time and clooney hasy, stepped into the legal issues. Are we going to get them back . I dont know. I liked the quote from the museum in london. You might question why to make this kind of Cultural Exchange when there is heightened sanctions surrounding the eu and russia. The more chilly the politics, the more important the relationship between museums. Clearly they think their bridges that can be mended. Countdown continues over the next hour. We will hear from Mark Zuckerberg about his latest mission. But that is coming up in a few minutes time. The second hour of countdown this friday morning. The chief executive of rio tinto tells bloomberg that it is business as usual for now as the market continues to speculate over a revised officer offer. Its very important that we skip to that same client and we dont get distracted or deviate or do something silly. Mario draghis big stimulus plan for the new year. There is said to be working on a broadbased package of assets. A 9ose to agreeing on billion offer for its portuguese assets. A deal could come as early as today. French Business Leaders get together to push a positive message on the economy. How Mark Zuckerberg plans to bring the internet to the world. Welcome to countdown. Welcome to the second hour of fridays program. Thank you for doing the time because i always get it wrong. Start with an exclusive interview of the chief executive of rio tinto. He tells bloomberg hes reconsidering a deal that could criqui the worlds biggest mining company. Rio is the second biggest producer of iron ore and supply has set the prices to their lowest since 2009. An economic slowdown in china and slump in demand has forced several minors to cut costs. The ceo says advances will not deflect his plans to get more cash to investors. Exclusive interview bloombergs guy johnson asked the chief executive about the potential for a deal. At the end of the day it will be a decision for the board and not me personally. Clearly, when you consider this will be a whole raft of things that you looked at in terms of our business and their business isnt they come back in april . I have no idea. That is not question for me. But as you say you are a man who likes the plan forward, are you planning for that event are you putting this business on footing where it needs to think about this as being a possibility . The most import thing is we have a game plan for how to run the business so we dont can distracted or deviate or do weething silly because of notice that somebody is hollering from the grandstand. That is not the way to run a business. I am confident as is the board that our strategy to deliver business in the strategy to deliver growth and to increase shareholder returns is in the very best interest of shareholders. More on that exclusive interview. Just getting breaking news on german factory orders. Rising more than forecast in october, a further sign that the economy is continuing to recover from its midyear dip. Revised 2. 5 after a increase of 1. 1 in september. Economists addicted an increase of 1. 5 . Orders grew by 2. 4 so is the economy picking up from its early year dip . The ecb as we know preparing further stimulus measures that could be used if needed. The owner of canary wharf very much in the news at the moment and they received a revised offer for that business yesterday and they are somending this morning so saying they will respond to the Investment Authority in brookfield who place the offer but they say it does not reflect for value so their seemingly not terribly impressed by what they heard there and just remind you that yesterday qatar spoke to authorities in brookfield and increase their bid for the canary wharf owner. To buy as much as so some complex views around the operating of the company. They said in the statement yesterday that is a 33. 6 premium if you like over songbirds closing price. This is a company that seems to have been in play for a while they have had a bid and rejection and further bed bid. Which could apply to another company, balfour. They have rejected something. They rejected every offer that comes its way. They were offered to be bought as a whole and then just this week john line Infrastructure Fund offered to buy its publicpartnership for folio, it builds schools and hospitals which is a big chunk of the business . It is and they said its not the right price tag, they feel it is worth far more than that. Value the whole portfolio i just over 1 billion. The assets that we since disposed of which include beer United States assets, will a 28 than when you look at the u. K. Environment they feel it is worth more than that. They say give us until january and we will reassess how much we feel this portfolio was worth. But who decides that . The synergies are so clear i think they are trying to hint at john lang Infrastructure Fund, even if they come up with a better offer i dont know if we want to get rid of this business. I wonder what shareholders are thinking right now. Some of them must beginning to the exasperated point because many fell feel that it should of been sold earlier because the company has not weathered the financial crisis well. They fell behind in certain projects. Theyre starting to see profitability eroded whereas other construction companys have felt the boon of the u. K. Economy. . And the state of the u. S. Business whose controversial didnt . And interestingly they did end up following through with their u. S. Disposal but it was more an area of accompany the advised more than anything. They did indeed end up selling it as they felt they should but the whole point was carillion did not want them to offload their u. S. Unit and they felt it was valuable. Decide that it does not want to be selling off assets right now and clearly they fill feel the john lang one billion pound offer is not up to snuff. Breaking news from russia it has intervened on the currency market. It intervened tuesday and we know because he announced that came out today. We dont intervened december 4 which was yesterday and it essentially sold 100 billion andes to prop up the ruble it sold 36. 8 billion rubles worth of currency on tuesday. It is intervening more and more after allowing the currency to free float last month. And spending a lot of money in the process. French Business Leaders are so tired of criticism that they are organized a summit meeting and paris to promote a positive image. It translates as lets bank on fronts france. This conference is all about boosting the image of the French Economy and to talk about this i am joined by the head and founder of this conference. We have the french unemployment numbers yesterday and they came out at 10. 4 for Third Quarter, is or anything we can do to reverse the curve of unemployment . We are not surprised by the figures. Employment figures are the result of the gdp of the country. We see that it is Still Limited with the forecast of 4. 6 14 and nor 2000 surprise about unemployment. What is seen in the Third Quarter . 3 we had a Global Growth of with some good results in the United States. There he good results in the south of europe and italy. Economiesso those two restructured among others their hadr market and at best we a negative figure in france, 3 meeting the growth had not yet arrived in france. Arene of the things we talking about here is the flexibility of the labor market. It need more flexibility and what can the government do to increase it . The labor market needs definitely more flexibility. It is important that a french entre nor has the opportunity to restructure easily their business when it has to and that has the possibility eventually to close the business when it is needed to rebound on new activity. Today it is very difficult. What we are claiming is more flexibility in this labor market , not only more flexibility more competitiveness. One of the key issues is to increase the members of hard work. What is a key thing to look at . The productivity in france remains higher than some other countries including the u. K. , so is it better still to hire french workers compared to another worker . Indeed, that is one of the key assets here they are very positive rid on the other side the number of hard work is more reduced than the older competing countries. And france you work on average 35 hours a week, 1600 hours per year and it is 200 hours less for example, then germany. One thing france could do is increase the numbers of hard work in order not to only have moreproductivity but also hard work. Obviously not everyone works a 35 hour week. Less forre working sure, depending on the agreement in the company or the sectors and it is also well known that the managers in france are hardworking. One of the things you participated in is called the france french lazy or clever . They are neither lazy or clever. We know that they are hard workers and they love their work and that is wellknown. You yourself have quoted the productivity which is very high. To they are neither lazy nor they should be arrogant and just go for it. From the ground in paris, back to you. Thank you very much, plenty from that event including throughout the morning. That will be on the pulse at tenant 10 past 9 00. Are you lazy or clever . Tell us on twitter. I was going to Say Something there but it is too risky. Do let us know what you think of the show and what you are focusing on. We are back with another bloomberg exclusive. With Mark Zuckerberg. He has been speaking to bloomberg west about the challenges of bringing the internet to lesser known parts of the world. If we were primarily focused on profits, the most reasonable thing to do would be to focus on the first billion people using the product. The world is not set up equally and the first billion people using food facebook have way more money than the rest of the world combined. Zuckerberg in a report of interest. Page has 2. 63 Million Euros in 2014. Coming up on countdown, the bank of cyprus is back in business with a new board of directors. The chiefeak to executive in two minutes time. Welcome back to countdown. The bank of cyprus is back in business. Joining us now is the ceo. Thank you very much for coming to talk to us. Youre in town because youre talking to investors, update them on the plan to relist the shares. We had a change in our board and we pushed to that for a few. Eeks this is a nondeal roadshow. In november he did go on the right to attract investors what was a result . We were on the road in july and the process of settlement has taken us to september am a we met about 100 of the worlds most successful integrators the of people like wilbur ross and very institutionalized pleased shinthe institutionalize a and checking for aliens. We worry that the capital rain thing mike might make investor nervous. Take theirhance to money out of the bank and have not. The behavior it proposes suggest they will be with us in the medium term. The reason we doing it this week is so a short everyone is really what the story as some of that supply comes loose loose we will have a waiting in the wings ready and waiting. This is the very fast recovering recession butin it is expected to return to growth next year. We are at 40 of the loan stock who bankf the cart on our side. Is it look like our side before the crisis . Did strip l i status as a tack avon and it attracted rush investors, either theyre much more stable or my experience they have a smaller solid business company. Wealth preservation company. We are probing natural gas reserves for the future so theres quite a lot of good prospect and indeed the way we fix cyprus is to get more people to come to cyprus. Services backss to 500,000 live in the cyprus and bank with the bank of cyprus. 1500 people come there and bank with the bike of cyprus. We have a balanced is the sales windowless transaction be lifted in what he i let this to happen . We would like to see capital controls, there is a gateway through which money moves we would like to see it why didnt and again overtime so we are absolutely ready with contingent liquidity and we are encouraging as we were the listing of domestic capital controls who would like to see the gradual and increasing release. Is it operating in an environ, you said you have a valid business but there is a russian in russia with the site and hang between russia and the eu had a change doing when you have this level of tolerance of the political and geoeconomic we have 2000 500 people out there right now. About one billion euros of ruble a equivalent three have to manage a business in russia in an economy that has challenges. No. Theres no question that the russian situation puts a subtle lurch. We are very happy to read have with russian customers. 70 is russian or former cas. I will act of answer the second one first i think the Monetary Policy is not translating through to deposits. Weve a shortage of deposits in this country and we are into businesses but the Inconvenient Truth of a recession is that businesses tend to do gear. While we are having a way of crying to the end and the European Investment bank, in the do you think they will pull the trigger early next year . Certainly the noise around what is being talked about is that they are getting ready to do it but im not the head of mario draghi. Tonight will go lives he said soap factory. They having a visit from the king of spain. The house of enterprise ready to the confident in your device anchor verizon internet environment must have great dialogue and we listen. Its a great tabletcomputer experience designed particularly. Time for the fx check. Lets look at the dollar against the yen. Another gain against the japanese currency, it rose about 1. 20 yesterday. This is a oneweek chart. 1. 24 to higher. The big data today comes from the u. S. And we are expecting jobs growth to continue economist at a 230,000 workers 214,000ber after hiring the previous month. Payrolls have increased by more than 200,000 for the ninth straight month. Bankruptcy in japan due to the weekend jumping last month to the most since at least january 2013. The week yen does not benefit all exporters. Yen, is the dollar and the it is gaining for the seventh consecutive week. The chief executive sam walsh spoke to guy johnson. Guy joins us with several of our european correspondent. How was he . He was on good form actually. He was entertaining and funny and determined that he will not be taken over by glencore. You can come back in april but it is not going to happen. It will come down to value but he says the culture of these companies simply will not fit together. Upstartmere 40yearold trying to take on a business that goes back to 1873. Cultural differences or at least a different philosophy around mining. That seems to be the key theme that we are trying to put out there, the fact that it is an Interesting Development in the takeover saga. The key message seems to be that glencore took a shortterm view about the way they treat customers and government much longerd have a term view of things, this is an integral part of their business and strategy and if he said that the glencore they would refute that quite strongly. I think they would disagree with that completely. What is the saying about the tumbling Commodity Prices . Live in a cyclical world and he very much lives in a cyclical world. But it is not his assets that are as cyclical as others because his assets are where it many assetsot generating accelerated return. But that is something other people have to worry about. Beforeand i were talking the interview trying to figure out what he will say on the dividend this is a company that reduced its debt aggressively. In the target range but the big question now is are they going to half to get the commodity price drop. Are they going to go back to increasing debt to pay a dividend and he was asked that question by me and im sure a lot of other people as well and with a little glint in his eye you said you have to wait until february. I dont know whether the smile indicated that they would be surprised the positive way or the negative way. We will wait and see but whatever it is february will be prime. Interesting on the commodity wonder whether lower Commodity Prices make deals in the sector more or less likely. Just on the dividend point it was interesting to note that he did sound a little bit surprised. Theyre facing really low prices for iron ore and it looks like a lot of them bhp and particular and maybe Anglo American will not be able to come out of it. Debt is a real prospect. A positive surprise or negative surprise . My impression is a positive surprise. Comment about how the different philosophies mean that this deal could not be done but is that the strength . There are different types of businesses. Rio doesnt have a history of being a Trading Company and that is what theyre saying, different philosophy and never got into the Mining Sector in a big way. Perhaps picking up assets and parts of the world. So there are some key. Ifferences there is there a sense that this deal is all but inevitable . Sam walsh yesterday says it seems clear they will put in a really hard defense and that they are adamant that there are strong cultural differences that will affect the way they analyze. Thank you very much for joining us. Bringing that fascinating conversation. Tos turn our attention spain were we have Industrial Production figures this morning and one ceo who has been vocal feate improvement is the ceo. You are hosting the kings today at your factory. What are you hoping to get for your business . Kings visit makes us very proud. He is visiting a great moment in this company. Fiat has been growing to traders in a row now and were very happy to see the company flourishing in the core european markets. Taken our growth from what everyone else calls a stable margaret environment. We have our third year of growth in germany and the growth in spain is 13 . To see it going from strength to strength. The car that is really turning us around is the new generation leon. Success in the market areas and is really helping us to turn the business into a much stronger brand and business for the future. Coming atee the king a great moment of the brand and i think he is happy to see up British Company performing so well. What about the profitability youve lag seat, behind some of the other parts of the business. I was a turnaround and profitability going . Turnaround in profitability going . We will have the highest Production Volume in this plant for 12 years. A bit of a shifting from the small car business we had just a few years ago. Going into much richer revenue bands in the u. S. Industry. I cant talk about the numbers yet because they will be revealed in march of next year but i can give a signal to you that it is not only the volume on the rise but we are seeing a strengthening of our business and im very happy to see the progress we are making. Form athe clear goal to company which is strong in the market, sustainable and profitable for the future. We see ourselves taking stepbystep things for the right plan for the market. Russia has been in the headlines for geopolitical reasons and your company has pulled out of russia, why did you make that decision . Engagement was actually not a major operation for us. Maximum 3000 cars per year and with the current environment in russia which is tilde with uncertainty we have the ruble currency going in the wrong direction so it did not make sense for us to stay in that business much longer and we did not really have a longterm perspective. That might change in the future but we thought it was more prudent and safe for the company of our size to take action and pull out of the market where we are seeing no real future. It was not a strategic market. Where growing despite pulling out of russia and going from strength to strength focusing on the european a comedy economy. Talking up the strategy of a business such as yours, we spoke to the m w u. K. About we shiftto bmw uk about the in car ownership towards sharing and the sharing economy and car clubs, how much will that encroach on the ownership model in europe . Looking into your crystal ball. I think it is hard to predict. The reality is we will probably see the same trend as we predicted with electric mobility. Areas bute some urban i do not expect a major influence on the short or mediate mediumterm but in the longterm things will shift and we will shift. Simple, if is very we stay connected to our weers and produce cars will be well in the marketplace. Im not scared of the development. It will be part of the future mix of well take it when we get there. Thank you for joining us. O joining us for a big day for the company. Merkel isup angela extending the chill on her relationship with nikolai sarkozy. sat will it mean for europe two biggest economies . Welcome back, time for todays bart chart. Whats the best performing bond market . Who is number one in developed bond markets . Interestingly, this is why im doing this, i thought about it and this is why im doing it. It is the u. K. Last six months. U. K. Securities have outperformed 28 other developed countries with the return of 8. 5 over the last six months and that is pushing back their expectations for when the bank of england will raise Interest Rates. The worst sovereign developed bond market in the last six months is the middle chart, greece. Greek government securities have declined 9 . Euro areathe only bond market to register decline over that six month. Sixmonth period. Developed is the only country to post the clients over that period as well. Haggling with creditors over the terms of the bailout. The second best performing government developed bond market is belgium. So often we talk about belgium but belgium securities in that. He in that period. Greece does fair a lot better and its Government Bond market your today has returned 14 but the best performing sovereign bond market over the year 2014, the champion of developed Government Bonds is torture goal. Portugal. Is portuguese government securities returned over 10 . But the champion, number one over the last six months is the u. K. In till january, that seems to be the message out of the ecb yesterday on how they plan to fight inflation. The Government Counsel once more data and was to see how much Lower Oil Prices fall. Mario draghi once more information. Is there a gap between what draghi is saying publicly and what officials are considering privately . This date of january seems to be talked about a lot. We are getting down to timing so what he said yesterday is that the Government Council considered quantitative easing and said they would consider it again in the next year but did not specify when. That is all public. News had anoomberg important story saying they would consider a package before the next meeting which is january 22nd and in that package he will have sovereign bonds. That is quantitative easing. Ont is all private paste anonymous sourcing so that is where the difference seems to be but clearly they are thinking about something. Mario draghi hinted at this yesterday about the technical measures the staff is taking. Relevantaff and the euro system committees have stepped up the technical preparations for further measures. Which could if needed be implemented in a timely manner. Officially the big change in verbiage, the ecb intends to expand their Balance Sheet by one trillion and before it was just expects. I love the subtlety we get with central bankers. Here is how we will win our pulitzer. Interview all central bankers preschool teachers and see if they were this specific at a young age. Is it born or do they learn along the way . Sticking with the euro growth seen, Angela Merkel and nicolas sarkozy, mike and beginning next week in cologne . This is a fantastic story, merkel and sarkozy get together but will not share a stage and will not share a podium. Another story from our colleagues hero bloombergs they reported that sarkozy will be visiting this is the annual Christian Democratics Union Conference but he has been asked or told he wont have an opportunity to address the crowd. Maybe the relationship is a little bit chillier now that sarkozy is out of power. Do we read into this something about the relationship between germany and france or is this just to do with the fact that he is not the leader of france and clearly has intentions in some direction . He is the leader of his party and he agreed to that position so if youre going to have Party Leaders i dont know what the protocol is on whether or not the leader of the conservative party in france has always been as a matter of courtesy extended a courtesy to address the crowd, this is a german conference and the german party. Sarkozy will be attending. Sarkozy be very interesting to watch how he navigates his return to public life. Theeeds to do it on International Stage and he needs to do it domestically and he has some difficult decisions to make. It doesnt look like the party is making it any easier for them. This is according to people familiar with the water but officially there is no comment. Merkel called sarkozy to congratulate him on his election of unc chairman. That was according to a Party Statement yesterday. Lots of strength and success. They will meet very soon. Youre looking at live pictures of the city of london equities are expected to open lower and roughly 10 minutes time. That puts futures by 7 10 of 1 . It looks chilly, we will be back in a couple minutes. Lets take a look at the stock to watch. Caroline hyde is here. , they may getise a higher offer for their ppp Public Partnership portfolio. Various infrastructure and john lang Infrastructure Fund came out and said we will give you one billion pounds and they said no thanks. Not nearly enough they think. Since june a value their overall portfolio at more than one billion pounds. Significantis more because the markets have so and becausece june they rejected this other company at a higher price they feel they can get more bang for their buck when it comes to their ppp portfolio. There are estimates that say john lang will come back but it looks as though i think that Balfour Beatty doesnt want them to come back. They said in january we will reassess the overall value. If we thought it was more highly valuable it is so important to us in terms of synergy that i wonder if they will ever sell it. Interesting that the share my go higher. What about harry watts . Keep an eye out for songbird. It could well rise as well as it rejects another offer by Qatar Investment authorities port canary wharf. This is the financial district in the financial united kingdom. 2. 6 billion pounds of the table, not enough. In november 28 that we think it is worth 380 1000 381 pence. They say it is not reflecting the full value and we have a unique position and there is future growth potential. I went around canary wharf recently and they have fascinating miniatures of what they are doing and how they are expanding in this is an area that is really growing. Their at level 39 where there incubated financial tech who they want to breed more companies. They want to not just be seen as banking, they want to be a technology hub. They have been investing an of the areassome and are building more property there. They want more people to live there. So they think they are saying it does not reflect the full value and theyre going to the Company Board to write to shareholders with the detailed view of the offer. With Belfour Beatty and canary wharf owners onboard. Songbird. I need 100 more followers to get to a thousand, can i get that . Caroline hyde is up there with britney spears. Welcome back to on the move. I am jonathan ferro. Moments away from the start of european trading. Numberobs day, the big of the day, 230,000 is the guesstimate. Thats how many economists say we have added to the u. S. Economy and unemployment is said to stay at a six year low. The European Central bank expects to consider a bond buying proposal as early as january. This as the German Central Bank cuts its forecast for the europes largest economy. In the u. K. Construction company rejects a one billion pound offer from john lang Infrastructure Fund for its portfolio of governmentbacked projects. Theour beatty says projection falls significantly short of its own value. We will talk about that. Right now im looking at futures, higher across the board in europe. That is the futures market. The real cash market. Look at the pop happening in france, almost 1 . Interesting to see how germany will open because check out german factory orders this morning. Expectations, a 2. 5 increase for the month of october