Has been quitegh sensational. Esea the chin market yesterday set a different tone even though people talked a lot about the level of intervention by the Chinese Government. Equity markets changed in a looks like the risk has been revived. Guy i think the last hour so much as happened. You had the military finance line come out of china which is really interesting. That has overnight given the market and nice lift. U. S. Futures appointing to an open, but that is today story rather than yesterdays. Anna some strong moves. The s p 500 gaining, making it secondbest again this year. I guess nos of rise making a big move no surprise making a big move. Technology in health care are the sectors that built up yesterday. Guy longerterm, you will see we are still significantly down. Yes, we bounced back sharply. There are a lot of things to factor in. We are waiting to see what the fed will do. This line from the chief economist of the world bank is absolutely amazing. He talks about the idea of a fed rate rise, despite being anticipated, could cause panic. Anna some panic and turmoil in emerging markets. Rate rise trigger panic in the world of the world bank chief in the words of the world bank chief economist. Guy lets talk about the moves we are seeing in asia. Tokyo turned around. Lets find out exactly what is going on. Shery ahn is standing by for us. Shery good morning. It is an incredible rally across markets in asia. The benchmark index raising the most in four years and yes, led by the nikkei. China. Been set by it is going more than 1. 9 . The index getting all 3 . We have speculation authorities are trying to prop up markets. Goldman sachs saying authorities have been spending more than 236 billion trying to top off the markets which is causing momentum. It is rising 2. 3 . Australia gaining 1. 6 despite some disappointing data showing that Consumer Confidence actually plunged in september. Not to mention some new home loans growing at a slower pace than expected. New zealand rising more than 1 . We have the meeting tomorrow and they are expected to cut the key rate by 25 basis points. Lets take a look at the nikkei because there is a surge across the board. All stocks rising today except for toshiba which has the accounting scandal going on. Today they said they will hold an extraordinary general meeting at the end of the month. After seeing this surge the nikkei lost all of this years gains yesterday. Probably a little bit of bargain hunting, but also being helped by weaker yen. We are seeing the yen declining because of this gaining of three consecutive weeks. We have the japanese yen will actually gain on an annual basis. It is now doubling for the past month. But, we have seen some weakness this week and that is probably helping stocks. It is making the japanese yen less of a safe haven. The australian dollar, we are seeing a different story, gaining for three consecutive sessions. It fell for the past month, even below the . 70 mark, but now gaining momentum, backup 4 10 of 1 . The image right now in asia a rally across the board. That to you. Guy thank you. Shery ahn joining us from hong kong. Stay with kong countdown. Swiss this list should W Engineering bay giving out the performance. They are concerning their guidance for the Second Quarter but going into the details, they are cutting back their guidance on revenues. They are cutting their targets to 2020 average annual Revenue Growth to 3. 26 . Just a small downgrade. But the reasoning behind it, some slowing Industrial Production growth which is lower than forecasted. All the conversations they had been having. Guy especially on the oil sector. Two things we have been seeing as of late. We will talk to them later on. Obviously competing with Companies LikeGeneral Electric and in europe. Ceo will bes joining us later in the program. Anna the European Commission president will give the state of the European European Union address today. Troops tois deploying with water. Its water its border. Hans nichols is in berlin with the latest. Fill us in with the latest in the last 24 hours. Hans it seems as though denmark has become a flashpoint. Overnight, there were reports that some trains from germany were not making it through to denmark and officials and denmark are saying they want to register refugees and or migrants because if they do not theyll will have to deport them, but some people do not want to be fingerprinted because the ultimate goal is sweden and they dont want to become potentially in the applicant process. From angela merkel, we heard strong rhetoric from her. Her government attempting the cost could be 10 billion euros. A couple of days ago, it was 6 billion euros which they set aside for 2016. Hungary has deployed some 4000 and are planning to deploy 4000 troops to the border to accelerate the building of the fence. Officials are calling the situation extremely grave. The High Commissioner for refugees says the commissioner of situation is manageable but they say response has been extremely disorganized. Clear that this is a serious crisis, but to me, it is also clear if europe would be probably organized, it would be manageable. Im talking about 4000 to 5000 people. In a union that has 508 Million People. We have thousands crossing the mediterranean which is less than 1000 of the european population. Hans among the things that stay, free travel within the area. That is really what could be potentially endanger. You look at what happened in denmark over the last 24 hours and you have the Danish People party which is the conservative right wing party they are in coalition with the Prime Minister. They feel is the way promise was made by their Prime Minister to the German Government to take just 100 of these refugees of the 4000 in hungary and they say that plan was never run by them. Here is the issue in the last 24 hours, 800 potential refugees have come through denmark. The promise they are upset about is quickly overtaken by them. Guys . Guy hans, thank you very much. Hans nichols, ahead of the state of the union speech. Anna apple posts its annual s splash in San Francisco. It is expected to unveil its iphone. The head of digital is here. Nate, good morning. What should we be looking for . Apple is still very much about the iphone, isnt it . Nate a pretty safe bet we will have a new iphone. What is quite interesting about the rumor mill talking about is this phone will incorporate a new type of technology that will allow the screen to know how hard you are pressing it which may not sound as impressive as it actually probably is. This is technology they have had in the recent laptops. But it allows the third i mentioned of interact third dimension of interactivity. This is something that produced with the apple watch. That is something they are looking out for. This is the thing we are going towards the direction where it is onebutton. This, you know, only talk about the direction, they are going towards the direction where there arent any more guy . What about the software . 9 is the next version. It is more of a refinement of the existing look and feel of things. It is not a major update. There are a lot of tweaks. Next the phone run a bit faster. The real emphasis is on the iphone hardware. The real elephant in the room will be apple tv, we expect, which is expected to take something of center stage. Guy a hobby project . Nate for quite a while, but it will be become less of a hobby and morbid focus more of a focus. Apps for apple tv which is something that has never happened before. It will allow apple to go against the console makers sony, microsoft. They have had a very nice time being underneath peoples televisions. Apple has been in the background doing nice things with television and videos. While we are talking about singing were expected, what room what we are going to see siri activated, command interface. We are also talking about will have much more integration with the games companies, software makers, a massive new direction. Anna talking about games and television and innovation on both fronts. That is something the whole tv project is trying to convince tv companies to make it. Thingst is one of these that apple is generally targeting region by region because of this incredibly complex nature of tv rights. Apple is in a good position from the outset worldwide is unleash the app store product platform on apple tv. It is expected the system will run very Similar Software to what is in the iphone and ipad which means developers are pretty used to making programs for the apple tv. Small tweaks could open up this entire world of applications. Guy this becomes a home hub. You look at what google is doing, devices around the home that control things. You plug it into your network and off it goes. You can do laps that apps that control things. Nate that is what apple has been doing on the phone side. That is the platform for everything from certain my lights on, please, do everything you mentioned. There are lots and lots of companies that are investing in this, not just apple. Samsung was showing off last week its smart thing platform which is a rival to home kit. These support platforms from somebody different companies, honeywell all the companies you would expect in the home market these companies are saying come to us, we will support you. Anna we are speaking later to abb, and they unveiled a voice activated system. Guy thank you, nate. There was appeased this morning saying apple was in talks. How much is the right . Ent . Apparently 12 Million Euros a year. Anna 40 minutes past 6 00. We will be live in San Francisco which kicks off at 6 p. M. In u. K . Time. Guy markets in asia rallying hard. The trickiest he has ever come across. I think it is probably the most difficult investment landscape in my lifetime. What that means is in terms of private equity there is opportunities. The opportunities are quite shortterm. You really have to grab them to execute them quickly. Guy we have more from that interview a little later on. Anna a conversation with Warren Buffett in all the stories you need to know when we come back. I think it is unlikely it has slowdown but it always can. You look at history and has not been a straight line. But, when i look at is five or 20 years out and there is no way that america will not make progress, china will not make progress, europe one not make progress over that time. Guy that was Warren Buffett talking to bloomberg about why he is not worried about the longterm outlook. Interesting. Anna 18 minutes past 6 00 in london. Here are the stories you need to know. Plans to deal with the on president in wave of refugees. The plan to resettle 120,000 people will be announced in the state of the union speech. We will bring you breaking news which starts at 8 a. M. U. K. Time. Anna passengers were rushed to safety after a jet caught fire at the las vegas airport. And billowing flames and billowing clouds went into the air. All passengers and crew members were safely evacuated from the plane. Only two minor injuries were reported, from Mccarran International airport. Guy staying in the aviation arena pilots of a german carrier are striking for the second day after a call to block action. More than 1000 flights have been canceled over half were canceled yesterday. Anna earlier, we told you about the world banks latest warning for the fed. A rate hike could cause panic in emerging markets after the chief economist. Lets get a view from the markets. We are joined by peter from swiss banks where he is head of market strategies. That weyou make of this could see turmoil in the markets and some panic and turmoil in emerging markets . Is that obvious or is that a story . Peter it is a story that continues weve all. Raisesa that if the fed 25 basis points, all of a sudden, everyone will start panicking and selling off their emerging markets currencies. I think that is a little bit overstating because that is not the type of panic or crisis were seeing unfolding in emerging markets. We are actually seeing a relatively slow, you know, tidal wave of concern in emerging markets. You look at ever since bernanke made mention of raising rates tantrum weve seen a steady depreciation of the asian emergingmarket currencies. 10 , 15 which is slowly eroding confidence in emerging markets. We are seeing that repayment increasing. So, the type of crisis we are seeing is much different than a panic 19971998. Guy this is the most telegraphed fed rate hike in history, ever. Peter i thought it would be coming out that it. You are right. 25 basis points, we are not talking about 50 or 100. Maybe not. You are right. It is the most telegraphed it reminds me of austin powers were the guys getting run over by the slow and you screaming for five minutes. That is the emerging market panic we are seeing. It is not going to be 25 and all of a sudden people realize, but it is a slow evolution of depreciation of emerging market currency which is very real and i think is becoming a real problem. Ratio seeing debt to gdp at the highest market highs level since the 1990s. It seems to be the structure, the condition seen to push to further weakness in the emerging markets. There is a real concern these spiral into some kind of crisis. Anna september then or december . Peter yeah, yeah. I think the data supports a december hike. Anna even with inflation . Peter yes. I think there is a need for the fed to begin preparing for other even to allow the and have even ttualities. Anna is that a weird argument, because it seems you should hike to cut . Peter it is. I believe you have to have in your toolbox in order to defend yourself from the market wa forces. It lends itself to how the inability of Central Banks really to drive policy at this point. When people are so concerned about 25 and using it as it excuse to cause market panic and volatility and stopping you are policy decision, i think that is a new type of debate that needs to be had. Guy thats what the monetary side over there and talk about the fiscal side. China overnight coming out with a bunch of lies about what it is going to do. One of the things was it will carry out stronger proactive fiscal policy. Are we going to see a authority in fiscal policy . Peter i think so. It will start in china and spread. We recently guy even with the debt . Peter even with it. Japan just cuts Corporate Tax rates as well so it is getting this money back into the system. It is great way of doing it and it is quick and direct. I think the problem with the china situation is that other types of structural changes are drawn out and what china needs now is a stopgap today. Things like fiscal yes, exactly. Something in there to get the fire going and things like fiscal spending goes readily to that. Anna you said it will spread, so where . What is causing this frenzy for fiscal stimulus . Earlier,ke you said you have the g20 communication where fiscal bank policy will not be used for fiscal currency. Fiscal banks will have to look to other places in japan is one of the key areas where fiscal spent enormously, but they will have to do that, because it is doing more monetary easing. It seems to be the driver that will help ergonomics continue to push forward the story of recovery in japan. Guy what does that mean for my investment . Peter it depends on what you were invested in. Guy lets start with a blank piece of paper. 100 now peter despite the turbulence in china, the overall sort of easing monetary conditions mean that the equity market story is relatively intact. Perhaps you will not get the bump you saw over the last six years instead of the amazing rally, but we still think we will continue to see improvement in developed country marketing equity markets and europe will be a primary mover. Equity markets in europe will continue to improve as ecb moves towards easing bias and continues to stimulate monetary policy. I think equities are still a good bet. Even if the fed raises, the rate of increase wills will be such a slow slope that it will not have such a profound effect especially inequities, when they returned somewhat higher than bonds that is. Anna thank you for joining us. Peter, head of market strategy. Guy coming up, the most recent wave of immigrants in the u k as not only affected the british economy all but also the treasury of billions of dollars, according to our next guest. The refugee crisis and crunching the numbers when we return. This is counting down to the market open and counting down to the start of the speech later on. Anna welcome back. Sihere are the stories and need to know. Guy the plan to deal with the unprecedented waves of refugees. He plans to settle 120,000 people will be announced in the speechwriter. We will bring you the latest news. 8 00, u. K. Time. Is expected to unveil the newest incarnation of its most important product. Iphone, ipadl the and new operation system. Guy alibaba hasnt tripped of the crown of asias biggest internet company. Despite 140 billion of the stock value. Australia will assemble 12,000 refugees from syria and thiraq. Tony abbott has pledged 30 million to aid agencies in the middle east after being criticized the u. N. The australian airport has been authorized to expand its bombing operations in iraq and syria. Israel is the biggest beneficiary of this deal in the region. And i think he knows what he is talking about. Caroline asia is continuing to do so today. Lets look at the nikkei. Best rally we have seen in japanese stocks in four years, up more than 5 on the day throughout more than 4 over the course of the last three days this bite the selloff we saw yesterday which signifies the gains. Suddenly, back on risk appetite. We are seeing the rally we saw yesterday. Hundredand the us but the s p 500 had the secondbest day. It is all of the optimism that the Chinese Government will be able to stabilize the financial market. That is what is kickstarting the surge that is continuing. On the flipside, lets look at how the volatility is falling. Vix, the fear index, down significantly. Dropped 10 yesterday. We can see the heady days back in august when we saw the significant selloff in china riffling through the world market. Now we see a deterioration and a callinming. We are seeing a selloff of u. S. Treasuries. You are seeing the emerging markets, the us trailing dollar, the currency starting to gain. Werehe commodities seeing it across asset classes. Will trading is higher. Copper is high which is currently trading at the highest in seven weeks. The biggest surge in two years. Quite a rally. Guy thank you very much indeed. A little bit later. Anna lets turn our attention to the migration crisis that has been gripping europe. International leaders, europe plans to resettle refugees. Australia announced it will take in 12,000 more people from syria. Professorned with christian document. Uffman. Peter is still with us. Professor, thank you for joining us. Of course, there is a lot of humanitarian decision surrounding the current fleeing of these refugees of syria who are trying to seek a life in europe. The humanitarian question and the economic implications whenever it happens. Give us the benefit of your insight as to what you are experiencing. Magnitude,to this europe has well, particularly, germany and austria have seen a very large number of refugees. This crisis is likely to be larger in 92 and it is very challenging for europe in magnitude and very challenging for europe. Problemvery serious which we are seeing in the mediterranean countries which is the first stage of the journey for these refugees. But, also in countries like germany, austria, which at the moment are receiving the vast majority of refugees, these sources need to be made available and there was a large effort. View nomics point of should we be welcoming these people . Purely economic point of view, what does your research tell you about adding or subtracting to the economic story . Christian we are not analyzed data, not so that magnitude. The Economic Impact will always depend on the particular composition of the immigrants. It is very likely that what we are seeing at the moment are individuals that are welltrained, young, skilled and if they had some point insert the labor markets of some Northern European countries, then it is likely they will make a contribution. But it is very difficult to talk about that at this stage were be dont even know who are those people. Anna it seems germany, from a european perspective in terms of the numbers they have been talking about, excepting and encouraging the European Countries. They have the humanitarian case but what is likely to have penny in economic to have Economic Impact, the signs of them plus were talking about . Christian we dont know how many people will arrive at the end of the year. They welcomed very large numbers of germany accepting of two 800,000 asylum citizens. Not everybody will be granted asylum. Germany is a very big country. It has been economy that is flourishing. It has an aging population which kind of is an issue in itself, a problem in itself. A large number of young, hopefully, welleducated immigrants is not something which is necessarily harmful. I would rather think the opposite. Guy your research i was interested to reading your in talking your research, about the u. K. And arrivals from the eu have arrivals from outside the eu which has negative effects. Is the nature of your arrival into a country significant to the Economic Contribution you will make . If you are coming to the u. K. From the eu, you dont seem to have the same barriers, i. E. , an employer can look at you and straightaway. Does that have a meaningful longterm impact . Christian of course. If you want to be productive in any european country, you have to have the skills needed. One important skill is language. Surgery iftrained in you dont speak the englishlanguage, you will not be very useful. The same is true for other professions. Language and many skills which are very specific to the labor market of the country where immigrants lives a very important, to turn their productivity into productivity which is useful for the country. That will clearly be a challenge, in particular for countries which beat languages that are other than language, particularly germany. It is unlikely a large part of the Syrian Refugees in germany speak the german language, but there was a big effort to train them in Language Centers and make them more useful for german labor markets. Clearly, the composition, the lls and anna the arrangement is under the microscope at the moment as a result of this falling out. Do you think it lives through this . How does this crisis affect it . Christian it is wonderful. It has decreased action costs of traveling across borders quite dramatically. And it is the first challenge for the particular arrangement. I dont think it will go down with the crisis. I think it will live on. But clearly, we have to adjus institution and does not make a difference. What has been interesting is watching the Financial Markets over the last month access obsess over china. In europe, it seems to have very little resonance in the Financial Markets. Does that surprise you. . Christian a little bit. Er the potential spending on governments by europe. The one thing we have seen in the last gdp is Government Spending in europe has decreased. This could be one of those situations where you can get a significant stimulus boost by 1 20,000 refugees and the cost of integrating into society. That is something the market is not particularly pricing in. That could be a significant stimulus. I was going to ask our guest host what he thought about this. Number two, as you said, the allowinghenzhen and this effortless crossing is a real tension point for eu members. This only exacerbates the concern of how much is how much code integration should there be from europe. Going in, talking about greek exit, these are one of the primary reasons that those countries are looking sort of not to much greek, but britain is looking to separate the eu. It increases the possibility. Guy the cost of this is your research can you throw out any numbers for us . Are you talking about the german efforts to improve Language Skills . How much money will europe have to spend you obviously will caveat very heavily because we dont know these people can you give us an idea, history, any kind of comparable figures . Christian i think on the large budgetf money on the on the government side, this is pretty insignificant. On the other hand, the potential benefits of having welleducated people who are, well, integrate well into our liver markets are some potential. In particular, for countries, many European Countries and the situation, decreasing populations. I dont see in the longterm as an economic burden. I see it as an economic opportunity. Anna thank you so much for joining us. The director of research and analysis at ucl. Peter will stay with us. Prius withg up, the r a new look. Will it win back customers . We will talk about this. We will show you the pictures when we come back. Guy it is 6 45 a. M. In london. We will tell you the stories need to know about. Anna the European Commission president will present his plans to do with the unprecedented wave of refugees. The plan to resettle the people will be announced at the state of the union speech. We will bring you all of the breaking news from that speech at 8 00 u. K. Time. Guy apple is expected to unveil the latest incarnation of its most in part most important product a new iphone. There will be a new apple tv, bigger ipad and an updated operating system. British Airways Passengers were being rushed to safety after a jet caught fire in las vegas airport. All 159 passengers and 13 crewmembers were evacuated safely from the boeing 777. Only two minor injuries were reported, according to a statement from the airport. Guy rollsroyce has launched a new convertible aimed to the ultrarich driver. It is called the don. Tagarries a 335,000 price and will be available in the First Quarter of 2015 but the bmw brand is taking a different not at aveiling it car show. Totook to the web leeward different customers lure different customers. You see more and more online happening. You see blogging. You see the demand for information and for streaming information quickly into the world. It is raising and raising and raising. We have been catering to these demands. Number two, you also see our clients who are getting younger and younger as well over the years are also very much used to what i would call modern devices , online media and all that stuff. We are catering basically for a new niche in the market. I car show is great, but it is for the future to make the big noise among the unveil of a car. Anna unveiling cars online has become something of a trend. Toyotas prius is getting a makeover in the sporty looking hybrid made its debut on webcast this morning. Were joined from tokyo. The prius is famous red shape was synonymous with the hybrid. Why such a substantial Design Change . We will show a picture. Guest exactly. It was a very substantial makeover for the car. The company had little choice but to depart at little bit from the way the previous as looked prius has looked for the last seven years. Toyota in the previous generation before the last redesign in 2009 really, you know, the change did not really happen. When you talk to customers who were waiting for this redesign talk about the buyers being a most loyal. Aey said, i dont want to buy car that looks the same for going on 7, 8, 10 years now because all the previous as had such success, it has had the web shape. It is a car that is much more sleek and less stubby then prius has been known for for more than a decade now. Guy how does what toyota is doing with the previous compared to what is happening at tesla . This is in some ways not a comparable product, but how do the to sit buy sit sidebyside . Craig you do hear people make the comparison between prius and tesla because prius paved the way for any cars that had alternative powertrains whether it was electric or plugin hybrid or fully electric like tesla is pushing. Any people talk about electric car now, they talk about a model s or model s challenger. With prius, that is what you heard about any new price hybrid. You heard the prius fighter. No alternative powertrain vehicle has been able to touch the kind of volume that prius has managed. In 2010, when the car was at its peak, did more than 500,000 sales. To give you perspective to how that compares with what tesla is doing, the goal for the entire lineup for the end of the decade. Gives you a sense of how successful the prius has been. Anna this seems to be a trend towards unveiling cars through webcasts. Honda, rollsroyce and now toyota unveiling this, now waiting for the many tradeshows. What is behind a trend . Craig the frankfurt were show motor show is around the corner. What youre seeing is these shows are able to attract every carmaker in the world. You see dozens and dozens of new cars coming out at the shows. Unless you have the model that really can kind of rise above the rest, it has been a trend where you have seen Companies Pull ahead launches and reveals before the auto shows, but this is different from a perspective that this is the kind of model that would be the kind that would really turn some heads and is significant to a company. Youll also have the tokyo motor show coming up in a few weeks. Interesting to see toyota going this route, but this also gives them an opportunity to put more details about this very andificant car for them frankfurt coming up and tokyo following after that. Anna thank you, craig, joining us from tokyo. Guy lets go from hybrid to someone else who recently took a new vehicle into her stable. I used stable advisedly im talking about the queen of england. Today, she becomes the longest reigning monarch weve ever seen in britain. Queen victoria has been overtaken. This is front and center on the website, i hope. This is a staunch royal subject. Yes. Colleagues decided to take a look at what exactly is she worth. What is interesting is she has reigned over an unprecedented Wealth Creation in this country over decades. They came up with a figure of 425 Million Pounds as the valuation for her personal fortune. Anna the piece shows actually not that risk compared to others. Absolutely right. The richest person in europe was 32 billion euros. She does have a big stamp collection. 75 Million Pounds. Guy all stands are hers i would imagine. Tim it includes things like buckingham palace. That is held in a trust and not her personal property, is not something she owns. If she were to sell it, it is 2 billion pounds. Guy what kind of revenuegenerating possibilities that she have . If you look at the Balance Sheet of the u. K. , if she a net asset . Tim absolutely. The royal family is a brand. There is a figure in the story about what is the value of the royal family and it is in the billions of pounds. What does it generate in the economy in terms of the royal baby and all the things that are associated with it sales. Anna i am trying to think how this plays in your world, peter. I am sure she likes a strong pound. Peter all canadians. Anna she wants to bring the dollar down. She might have to take a loan from her greatgreatgrandchildren because they are doing quite well. I dont have much. Anna what about the pound . Tim this is one of our outlier calls. We think the cat is ready count is ready for a reversal. The data in the u. K. Has proven that a rate hike has to be coming around the corner. A divergence with the china situation, volatility, has moved people away from seeing the shortterm hike pushing it down the line. We think the Economic Data coming in today, it has injured us youll and economic industrial and economic production. We will continue to see the uks moving in the right direction and repricing of a rate hike in early 2016, excuse me anna five years. Ptim should give the sterling and boost. Guy ok. The queen is a fascinating. The pound, the queen, the whole u. K. Story i am curious whether you think you good the u. K. In a historical point of view and look abundant at where it sits in the world, what is the queen presiding over . How does the u. K. Perceived from an economic point of view i am just wondering. Tim im not sure my confusion is really where the queen comes into play, because as you said earlier, what she actually does is a difficult one for me as an american to fathom. Guy we had issues. Anna many britons are trying to get out. Seem to like the queen. Tim there are people that it says about a lot of we are things in america. Im not sure what those outliers really push on. I think that is really the beauty of america, sort of what happens in the tales and not the center. Who actually likes the queen in the u. S. Is debatable, but i think from a standpoint of london being an economic powerhouse anna thank you. We have to speak about this later. Guy we will take a break. Peter is staying with us. Back in a moment. Guy asia rising, than a kite jumps than a kite jumps over five the nikeekei rises over 5 . Raising its Profit Guidance by 25 . Guy welcome to count down. Anna welcome to the program. We start what is happening with markets. Strengtheen some real and showing what is happening in asia sections up more than 7 in the nikkei. Guy early indication of what we think europe futures will look like. It was like a positive start. We are homing into what we will see. The u. S. Is gaining traction. This is what we are looking at in terms of the european expected outlook. It is up over 2 . 1. 4 . 1. 9 . The dak is up over 2 . It looks like we will have a very positive start here in the european section. Anna the moves we are seeing in asia quite significant. More than 7 . As is picking up to where we were in the u. S. And china yesterday. It seems the china moves yesterday seemed to put a sore on things. The markets ability to digest at the same way. Guy the last hour of asia trades and into the european session it seems the momentum is building. We have this life and the ministry finance, talking about carrying out stronger, proactive fiscal policy. May be more of a push on the fiscal side by the chinese with his adding more by the asian section. Anna emerging markets have been tough in many ways. As we look ahead at what the fed is going to do, increasing, interesting commentary by the world bank chief economist and the possibility of panic and turmoil if the fed hikes rates. We are asking that question today. If you want to have your say, do you think this potential rate hike in the fed and there will be panic and turmoil in markets . Guy tell us what you think on twitter. Japan is feeding into the story. Breaking news out of Europe Ryanair has had a solid summer. We spoke to the cmo who thought august was going very well and now Caroline Hyde has the details. Caroline they said it will be the top end of the forecast and today they say they will smash it. Forecast. E in the you will not see profits into 1. 225ont anywhere from billion euros. Could be made because traffic when up. Fares a re rising. They also seeing some general positives winds blowing the direction come on hedged fuel, prices being lower. It is as if they did not want to be outdone by their number two competitor who just last week lost gave its own for your focus. Forecast. It gave its forecast because of the strength of july and august and because of the sheer scale of the upgrade is what they say actually formally enough we are getting humbleness. Is also say it is not just policies working, it is also what is helping with the rest of the industry. He says the bad weather in Northern Europe helps everybody to get out on holiday. He was just talking about the strength of the sterling. Sterling is encouraging more u. K. Families to go on holiday. Goodays reasonably capacity and oil has boosted ryanairs profitability. He says it is our own work where we are working, always Getting Better. That is what the Customer Experience program is and the actually want to be a better provider. That is bringing in more people traveling with ryanair and paying slightly higher fares. There is a caveat the wind gusts flows will not stick around for other. Then dont expect favorable conditions to persist. They see yields this winter. Quick check we are close to a record high when it comes to ryanair stocks. I think today could push it over the edge. Back to you. Guy thank you. We will talk to the cfo later. We hope you will join us. We get his take on the business and how tough the winter will be. Anna we have talked about how strong the equity markets have been performing. Lets go to hong kong for the latest. We are seeing strong gains across the board. Shery ahn has the details. Shery good morning. We have not seen such a rally in asian stocks in six years and nikkei is leading the gain and closing 7. 7 higher. Such gaint seen since october 2 dozen eight, the aftermath of the collapse of lehman brothers. Is fueling optimism in asia after surging yesterday, surging again today one hour to the close in china. The shanghai composite rising 1. 6 . More than 3 . The asx 200, 1. 8 . New zealand stocks raising 1 which is ahead of the policy meeting tomorrow where the central bank is expected to cut the rate by 25 basis points. It is all about the nikkei today. Rising across the board. All in green and we have seen this positive momentum after shares plunged yesterday to erase all of this years gains. Some are saying that lunch yesterday was excessive and now we are seeing some bargain hunting today. Some say investors are closing or they closed short position and speculation that the spec central bank will do more to stimulate the economy after chinas week traded at. Also, stocks being held helped by a weaker yen. Gainingafter green for three consecutive weeks. Emerging markets are a different story for them. They are gaining on optimism that we will see china able to stabilize financial market. Rate climbing to gain half of a percent today. Back to you. Anna thank you, shery ahn. Commission president delivered his state of the Union Address in about 60 minutes. The refugee crisis is dominating. Germany converting to house new arrivals. Denmark now becoming the center of the story as well. Issues about people passing through the country. Hans nichols is in this country. A critical day in this story. What are we going to learn and what does it fit into the last 24 hours . Hans we will learn how far apart the eu numbers are from the reality on the ground. Even the most generous counting as 160,000 refugees resettlement within the european union. Every day in berlin, these are the named latest figures, 1000 refugees are arriving in berlin everyday. It looks like authorities are wanting to register some of these migrants, but they actually do not want to be registered because they think that will hurt their chances to make it to sweden. Merkel is doubling down. Latest we havehe of how much theyre willing to spend. At a same time, all morning, we heard from federal and state president saying simply is not going to be enough money. For 2016, 3 billion going to the state is not going to be enough. What we are hearing from the yuan High Commission on human rights and while yes, you have a disorganized response, the crisis is still manageable. I think it is clear that this is a serious crisis, but to me, it is clear europe would be properly organized and imaginable crisis. On talking about four or 5000 people a day. In a union that has 580 Million People. 300,000 that now crossed the mediterranean which is less than 1000 of the population. Numberust to give you a some of the tension in the number, they were upset about a promise of taking 100 refugees over hungary. It turns out 800 come in. Even though they are upset about the numbers, it is eightfold. Nichols,nk you, hans with the latest on the refugee crisis. Guy lets turn the conversation surrounding the markets. Head is still us. Peter, the nikkei is up 7 . Give us your sense of how real this rally is. I think it is as much real as the last six years of full rallies in equity markets are. It is based on stimulus and the artificialness of this type of, you know, type of rally. Cut thehe would Corporate Tax rate. This is part of his economics. The markets celebrated by, you know, conditions will continue in what do we see . We see a rally in asia, japan and across asia. This is very much what we have seen for the last six years and this type of quantitative easing coming this type of easing policy allows equities to continue to balloon. As long as you believe that story his impact, equity markets should continue to improve. Anna we have stories coming across asia for the last 24 hours. The hong kong dollar, lets talk about that because in your fx background, there have been a lot of questions about currencies and whether they will last. The current diverse policies we see exercise by the fed and under the pd ooc have the Hong Kong Monetary authorities. Peter the one currency that is really trapped between a rock and a hard place. It is holding the dollar and the fed to policy. It is throwing the kitchen sink at the situation. The problem that it is. Dont believe it will be we think it has a lot of sense to have the stability of the dollarhong kong peg. With think it has the reserves to supported despite the recent drawdown and in china. At this point, we dont see any reason why they should be a decoupling. Anna do all the pegs go . at all think the stress is there yet. We are getting closer. The gulf countries are the most at, you know, sort of at risk at this point between the oil prices being significantly low and the fact the fed is against raising rates. I think they are the ones that are potentially at risk. Guy you bring up the fed. Peter eventually, we had to guy the chief economist of the world bank saying that it could cause panic and turmoil when this happens and the emerging markets. Dramatic words. Quite a well trailer graft well telegraphed rate hike. Peter it is over the top. For anybody to panic, when the fed raises 25 basis points, considering the rest of the world is getting looser, i think it is a little bit over the top. Theink as you said earlier rolling crisis that we have seen in emerging markets is one that has been going on for almost, well, may 2013. 25 basis point hike is not going to all of a sudden open the floodgates for exits, but it will continue this rolling crisis we are seeing in emerging markets. Anna thank you, peter, head of market strategies. Guy great to have them along for the ride. We will talk to the ryanair cfo after the Company Raised its profit forecast by 25 . Ryanair, up shortly, on countdown. Anna welcome back. 17 minutes past 7 00 in london. Here are the stories he need to know. Guy presenting the plans to deal with the unprecedented wave of refugees. The plan to resettle 120,000 people will be talked about. We will bring you breaking news which starts in about three minutes 40 minutes. Anna ryanair has raised its forecast to one point three 5 billion euros. 5 billion euros. Guy apple is expected to unveil its newest incarnation of his most important product a new iphone. That is what were looking forward to later on. A bigger ipad and new operating mobile operating system which will have more capabilities. Lets talk about how the European Equity market story is developing. 42 and its the go until until we go into trading. A quick heads up on what is higher, 2. 2 2. 5 for the euro stocks. The dax is up. The fair value peculation we can give you. The calculation is up. 7 . Nikkei is up by spectacular. Anna outside of the japanese authorities, even outside of that, it is coming through in asia. Guy the iphone have to feel little outdated today. Apple is unveiling it in San Francisco today. Lets talk to nate who is here with more. Fashion andlower of a need to have my latest iphone, what will i get today . Nate hopefully, a gold one if you are following fashion. Anna they have done that . Nate they have. We are really looking for two new iphone models, improvements on what is out there today. It is kind of what apple tends to do. Have a big release and next year to have the next product. This is an s year. What we are expecting is, in particular, a screen that allows you to actually press and hold, like this green 10 how hard you are pressing it which allows it a third dimension of interactivity. It is not two fingers, it could be that plus pressing. This is Technology Apple brought in with the apple watch, called force touch. This sort of stealthy, more buttons eventually. Guy there will be less . Guest i think the years and numbers for the ones. This green will not work but the button on the bottom will work. The home button. That is the big anticipation. As you mentioned, the apple tv, this will feel like the elephant in the room because this has been apples hobby product. We are expecting this will be a much bigger deal for apple with a whole new interface on the platform, an app store, bigger emphasis on television and gaming. This is big news for anyone that is making iphone and ios software because they will get another platform potentially to unleash their apps on which is good news. Anna we get news around the iphone tv, the new ipad, something that lots some and to watch for. Thank you. Guy right. We will be live at the apple event. It kicks off at 6 p. M. U. K. Time. Plenty of coverage coming on on bloomberg tv. Guy lets be to the ceo. Anna his first interview of the day. He joins us. Great to see you. Thank you for joining us. Tell us how you see the world in the trading environment because i understand your concerns your guidance for the Second Quarter but uf cut at but you have cut out your revenue concerns. How week are there emerging markets of the moment . Guest the Second Quarter, at the moment, it is saving. We have perspectives on the global gdp growth. We have china really slowing down. We have the contraction of the spending driven by the upside. This is driving a more subdued outlook. The margins have an ambition to market. Basically the key is the ambition. It is slow to the growth target. Guy how much certainty to you have about what the next year brings . We have we heard from the world bank chief economist talking about panic when the fed raises rates. How much visibility do you have about the markets for your business . Ulrich look at the moment it faces. There is uncertainty and the outcome is the further you go out, the harder it is to go in. Your controlling the company. You are managing the cost for the growth and the growth for the best. A focus program, increasing the Structural Program and ensuring it comes into it very difficult environment and transforming ourselves to become more focused to really ensure there is profits of growth that is out there that is in a difficult environment. Anna you talk about transforming the company. How is the decisionmaking being made around that because you announced you are cutting, you are going to cut 1 billion in cost . You have been under a lot of pressure and activists, shareholders have been hope calling for change. Have they had an influence in the decisionmaking mike process you are announcing today . Ulrich not all. At all. Goinge explained we are and we have articulated two points. Point number one, it is a Great Company and i agree. Abb has substantial opportunity to unlock value. The board of directors and management is involved in an exciting plan in transforming abb. We are looking forward to saving it. Why does does this this company Stay Together . There is ongoing speculation around abb whether or not some of the parts are greater, etc. , etc. What the you say to people that believe there should be a separation . Ulrich i think it is very important when you look at our portfolio, the divisional realignment we are announcing today are getting closer to our customers. They are bringing together our newly shaped power grid. It brings power in solutions to the customers in the grid. We are clearly number one. We have the leading position. The realignment of the other positions, which we are cutting from five to four, we are shifting it to a much Stronger Customer company. Insteadexternal purpose of being externally focused. Altogether, we are setting ourselves up for driving really a leading performance. On the power grids division, we are conducting a strategic for poorly a review to assess the appropriate way ford for the division. Before to maked sure we had the right longterm perspective. Anna do you see any opportunities for the mna . What about doing deals to decide to billion dollars to 3 billion . Is a look more attractive . Ulrich if you look at the history, it has been executed very well. We also stray from deals in 2010 because we did not find the value. This is the pattern you will also see going forward. Last year, it put my decisions because we needed to look at it. It is done in now we are ready. The Balance Sheet is strong. That does not mean we will not do anything that is not value creating. Our cofortis our core focus is to do meaningful anna thank you. Ulrich, we will take a short break. We will be right back. Guy 7 30 here in london. 8 30 in frankfurt. 30 minutes to go until the european markets open. Ly this morning, europeans ryanair raised its profit goal. Lets talk to cfo. Anna congratulation on these numbers. Neal, you must be very pleased. He suggest that the driver behind this upgrade is higher fares. How much higher than expected have these theres been . Neal very pleased with the profit of great. We upgraded i25 percent from previous range of 940 29 70 million. 1. 2250 yeah. Very pleased 1. 22 5 billion. Very pleased with that outcome. It brought more customers to us. We flew with 95 load factors. Of 10 millioness passengers. People inlearly the u. K. With the stronger sterling. People are traveling more in the eurozone. See a 2 uptick in the first half of the year. Guy isnt there a tailwind that carries you into the summer . Are the two completely disconnected . Neil they tend to be very disconnected. Always Getting Better and adding more primary airports. Enhancing the schedule for this is customers. About 30 of our bookings are in place for christmas. 50 nticipate we will carry increase in passengers this year over the same quarter last year. Actually 24 Million People in the quarter. Fares will be broadly flat. March, growing by 20 in passenger numbers, to just under 22 Million People. The affairs will be marginally down. It is the weakest time of year. The time of year when a lot of theirrs are going to see field surcharges coming off. This could lead to a fair war. Im sure ryanair will be a winner in any fair war. Down minus two to minus four. A 40 a 40 increase on net profit. The europeann on economy right now. Where d. C. Point of weakness . Points of strength . Where do you see points of weakness . And points of strength . Strong weseeing are seeing strong booking patterns. Airline touropean carry in excess of 10 million customers. Sentiment is pretty good. Down inbeen discounting greece, to keep the greek people flying. That will improve over time. Will grow rapidly in germany over the winter we will grow rapidly in germany over the winter. Strong acrossly the field for us. Guy your operation, it looks like you had a fairly strong summer. Talking about translation through the business into winter, is that something that has been fortuitous . Or is this something you guys are doing internally which means operationally you are improving . L we did have the french airstrike the french air Traffic Controller strike i can the summer. Strike back in the summer. Seating. Ocated the enhanced schedule for business and leisure passengers. We did clearly benefit from the poor weather in Northern Europe where people took holidays. We have been in beneficiary of the strong sterling war. We will like to think the agb, it the always Getting Better program has been a key driver as well. Nextad factor is line anna you believe that they always get the investor program. Do you believe dusty sometimes do you sometimes sit there is a group and wonder why you did not do this earlier . Il its took a long time to get the network to where it was. Ryanair has always been an innovator. We have online checkin we were the first to do a number of different things. Our timing was right. The time was right to move forward with the Getting Better plan. We were the price leaders. We were clearly number one when it came to cost discipline. We have fallen marginally behind. It was only right that we addressed that. We are only halfway through agb. It will run for many more years to come. The benefits have been welcomed by the traveling public here it traveling public. Guy neal, when kenny comes to see you at talks about he has plans for the next six months, how many of that can you band into your numbers . The auxiliaryof stuff that he has planned . Is the momentum that is building . Neil we are excited about the website that is going to be launched later on. We havent put figures out there yet. What that might mean. We think it will open up a lot of different ways to enhance the Product Offering that we put in front of people. It will enhance the bottom line for the group. Guy nice to hear from you. Congratulations on the number. Joining us for his first interview of the day. Anna here are the stories you need to know. Guy Jeanclaude Juncker is to present his plan of the unprecedented wave of refugees. Announced in be his state of the union speech in stratford. It starts in 20 minutes time. Anna apple is expected to unveil the newest incarnation of its most important product. The company will introduce the new iphone. And a new ipad operating system. Guy passengers have been arrested to safety after a london bound jet caught fire at las vegass airport. Passengers and crew members were evacuated safely. Two minor injuries were reported according to a statement from the airport. Anna lets get an update to where markets are trading. Shery ahn is live in hong kong did shery hong kong. Shery the nikkei led gains. 7. 7 . Now we have china setting the tone with the shanghai composite rising again i more than 2 . Advancing for a second consecutive day. We have authorities are trying to prop up markets. We have positive sentiment in the business sector as we heard from the finance saying there want to try to step up efforts to reduce the tax burden on companies. Eight shares gaining for seven consecutive days. That is after losing for more than a month. Gaining 3 . Dex the most in rising almost six years. I wanted take you through some of the movers in hong kong. Sink on him for structure rising 4. 3 . They are now offering 16 point 11. 6 billion dollars in stock. In order to buy the Sister Company hong kong electric. Rising 6. 21 . C. K. Hutchinson rising more than 5 . Is staffingurge demand for a safer haven. The yen weakening again this week for the third consecutive session after gaining more than three weeks. We are seeing a trade of wanted to 20 spots. Seeing a trade of 120 spots. Rising. 5 an ringgit there. We have some optimism that chinas market is starting to stabilize. Malaysia reagan Malaysian Ringgit gaining today. Guy shery ahn, thank you very much indeed. Anna asian stocks searching for a second day. Confident desktop list returning to the markets. Joined ing where we are joined by Mislav Matejka. How do you contextualize this . Up 7. 7 in the nikkei in one day. More broadly, there is a big rally in asia. Does any of that makes sense . If you have seen the way the markets have been behaving the last six weeks, the markets myned to be oversold, view is the fed event next week, it doesnt matter what the fed does, what we need to see is moving behind us. The markets have to get more confidence. Not as a correction and start to a downturn. Guy the world bank chief economist has warmed has warned the risk of triggering panic in turmoil in the emerging markets. Izzy overstating the case is he overstating the case tackle the case . The emerging market currency is collapsing. Hat created the spiral my thinking is as if the fed event comes through, people are going to get more calm. At the end of the day, 25 basis points maybe and be very gradual. Theyre going to lower the dollar. The market needs to be shown love. Markets need to know that they are still on their side. Say we are very gradual, we understand the market concerns. Anna that sounds very positive in your view. I know you are concerned about u. S. Equities. Mislav in terms of the global location, we already moved u. S. Equities. The story we have is if youre is wheree u. S. Market youre going to make your performance in japan. The problem they have in the u. S. Is the market is maxed out. If you think about the essie if you think about the s p 500 tripling over the net last the s p 500 tripling over the last six years. The credit market was externally strong. That is done. Profit margins are going to the roof. Where is your further upside gecko if the u. S. Market does not go down, it is going to go slightly up. Guy 20 more to count 20 more to talk about. A heads up on what is happening. Asia really on a turned this morning. We are seeing tokyo up very sharply. 2. 5 did ftses up up 1. 7 . Firming. Ures are up nearly 1 as well here it as well. Looks like we are going to have a positive open when we start trading here in europe. Anna will be back in two minutes. Guy it is 7 47 in london. 8 47 in paris. Let me to you but stories we need to know about. Anna juncker is to present his plan to refugees entering. The plan to resettle one of 20,000 people will be announced in his state of the union speech in stratford. Well bring you all of the breaking news at 8 00 u. K. Time. Ryanair has raised its profit forecast by 20 . 1. 225 billionto euros. Toa apple is expected and could new iphone give us news around the apple tv, and new ipad and up and an updated mobile system. Guy germany today. We will talk about that now. Enjoyd he is ready to more strike action by his pilots. Costcutting which the airline says it needs to do to compete. Nna lets go live a thousand flights have been canceled. It sounds like a lot. Richard he asked for it and he got it. Company f is a big lufthansa is a big company. It may not be reflected in their market capitalization, but they are an industry heavyweight. 1000 Flights Canceled during the course of earlier this week. That is adding to the pile. This is been going on since april last year. There have been a dozen separate strikes, some lasting several days. Flights, all of those it is topping 10,000. Weve seen worse. Guy when are we going to get a solution . This is been going on for a long time. The longer it goes on, the most disinclined passengers are for booking a ticket days down the road on lufthansa. That is one of the big problems in trying to assess the damage. They may say eventually given to the union demands. We dont know. Last year, over 200 million. The union has said they may do piecemeal strikes again and again and tell about christmas. If you apply the rule of thumb, the strike will cost 25 Million Euros a day. At another eight days of strike s. You get to a halfMillion Euros. This is a strategic decision, earlys not about retirement pay. It is about something else. It is about lufthansa creating europes thirdlargest discount carrier with euro rings with euro wings. The industry is booming and with lufthansa once a piece of that. The union says this is going to be out of reach if the airplanes are stationed outside of germany. In some areas, we have no say, so we object to that. It is a fine line to what the unions can do and what they are objecting. Hearing. We had a lufthansa had to lufthansa try to stop the strike last minute. At the moment, the union is on the safe side. Anna richard, thank you. Guy Mislav Matejka is still with us. We are willing to see what is going to happen with the European Equity markets this morning. We have a conversation about u. S. Equities, maybe going sideways. European equities are going relatively reasonably today. When i look at the macro picture, im going to lose my gains that a make outset of the u. S. Because the dollar is on to strengthen because the fed is raising rates . Euro, iff you look at you think about second half of last year when Inflation Expectations were collapsing. Or in 2011 when europe was going to allegedly breakup, the euro was going down. Recovery in the economy is coming through, so there is no reason why the euro needs to be weakening much from here. Not,ther side, the fed is the side of the size of the Balance Sheet are going to cancel. The euro is slightly weaker, so the global investor, i dont think this is a story where all the gains are going to be lost. Anna are you buying european equities . Are they saying things dear to the recovery of the economy gecko economy . Mislav there could be some trouble as the feds happen. [indiscernible] market rightequity now at the record low in the last 30 years to the Broader Market . [indiscernible] nine times pe when the oil price is on its knees. Cut earnings could be anna by china. Yes. V it is all about how terrible china is good the equities already have the equities are d. Ready have already halve anna we are six minutes away from the start of European Equity trade today. Jon ferro is up next. Dont go looking out jonathan looking out for that juncker speech that is coming up. But market, were looking at japan with a ridiculous move on the nikkei. You cant really explain a move. Here is one reason maybe. Shortselling. Overnight,re seeing and the morning. Japanese stocks just a monster short squeeze. We look ahead to the apple launch event. Investors would love profit. A ryanair type a big elephant in the room, it is named after a ticker here it after a ticker. Guy you can find out what it is doing on your new mobile. On the move next. Anna that is it for countdown. Is reallyse market doing well. Nikkei rising the most the client guy guy john will take you through it. Countdown is done. Jonathan good morning. Im jonathan ferro, joining you live from bloombergs European Headquarters right here in the city of london. Just moments away from the start of european trading. It is time for your european brief. The nikkei surging over 7 in todays session. Oneday gain the biggest oneday gain since 2008. Budget Airline Ryanair raising its private guidelines like its the guidelines by 20 . Europes response to the refugee crisis is set to dominate john carter dominic Jeanclaude Junckers speech. Ahead of the open now 60 seconds away. I have futures high. Monster 223s up a points. We will break out the european open. We will tell you what is happening in japan as well. Right now it is Caroline Hyde. Caroline we are writing that wave that is come swelling over from asia into the united states. Were carrying it for an european trading. Where writing the rally. We are writing the rally. China might be there to stabilize its market. The markets continuing to crescendo over in asia. Japan, the best day in four years. Asian doing the best in four years. Asia doing the best in four years. Metals getting a pop higher on the back of china. Copper driv h