Transcripts For BLOOMBERG Countdown 20150910

Anna welcome to the program, you are watching countdown live from london. Lets put into context everything we have seen over the last 24 hours. We have seen a move back into the perceived safe haven place, although i should say the yen is bouncing around this morning in the session. That is nervousness around the u. S. Session yesterday. Lets reach out to where the u. S. Session took us. That came from what could be a good place, from the data. On the jobs front we got the survey in the u. S. Yesterday that shows that openings have increased the most since the year 2000. But that got investors wondering how quickly the Federal Reserve is therefore going to increase Interest Rates. That to the edge off the rest trading day yesterday. That would pick up in the asian sessions, and we see weakness coming in the session. All of that concern about the higher Interest Rates to me at a time where we increasingly see signs of slowdown, in part of the global economy. We had a number of clues today. The factory gate inflation coming through with the biggest drop in some six years. Brazil receiving a downgrade for his Credit Rating, as we said in the headline. S p. To junk by the and in new zealand, i have a chart on the dollar this is a threeday chart that shows how the dollar has moved lower as a result of the rate cut. That we have seen coming through the central bank in new zealand. That is partly a china story, we returned that no doubt in a moment. Plenty of threats to weave together today in our conversations around the markets. Lets get straight to hong kong where shery ahn is standing by. We have disappointing chinese data. Morning, filtering through the economy here in asia, we feel the impact of that. Of course, the shanghai composite down 9 10 of a percent. More than 2 with the Producer Price slumping the most in six years. Factory deflation has been a concern for quite some time now. The pdi declining for over 40 months, we are seeing more challenges for policymakers here. And i growth concern over the chinese economy, we saw through 3 aftermy, more than the historic rally yesterday. Today, we of course had some disappointing data out of japan, as well. Pdi machine orders and coming in at low expectations. The afx falling more than 2 , after some more positive data out of the economy there, employers adding more jobs and jobs to we 100,000 were expecting only 5000. The jobless rate easing there. Looking like that record low Interest Rate and also, you know, falling currency in australia, actually working for the economy. In new zealand, stocks unchanged at the moment. That is after the central bank caused Interest Rates by 25 basis points, to 2. 75 . We are not seeing much of a reaction in the equity markets. We are seeing it in the kiwi dollar, which is tumbling right now in trading. 2 , it was gaining for the last two session. We are seeing a drop. Actuallyyen, though, reversing earlier gains and weakening slightly trading on 120 spots. Back to you. Anna thank you very much. The latest on the markets there in hong kong. Lets stick with the asia thing, because the chinese premier leader still has the tools to deal with the growth. He announced that china will open up on shore currency markets to other countries. He spoke at the World Economic forum. We are integrating ourselves into the wider world. And china will open up even more. Our policy of investing abroad will remain unchanged. The specific policies will continue to encourage more Foreign Investment in china. And they will expand access to markets. Anna now the chinese premier spoke as china reported Consumer Prices rose at their fastest pace in a year. Compounding the challenges facing policymakers at a time when factory gate inflation is very weak, we have a live report from hong kong. Did he map out any plan to map out the economy . He talked about it operating at a reasonable rate, wasnt he . Yes he was. Good morning. He was at the summer version of davos. He had two big speeches to speak up the economy. Need a that if they steeper slowdown, interestingly, he was very direct on the yuan. He says theyre not looking to start a currency war. They dont what to damage the economy. He says theyre not looking to depreciate the one further. Comments by the premier pretty he willt, given that visit washington later this month. Anna very important in the context of august 11. The figure we got overnight, it shows factory gate deflation has deepened months and months of that story. Leaving the gap between Consumer Prices, and is factory prices the whitest in some 20 years, how can Central Banks and authorities get out of that . Enda it is really a horrible combination. You have in real terms higher borrowing costs for the factories, because inflation is going up. On the other hand, we see a bit of a spike in consumer pricing because of the impact on higher port prices. But they will look through the price of pork, and the Bigger Picture for them remains what economists say are plenty of rooms and options to take other targeted easy measures to try and get credit flowing through the economy. I would imagine the authorities would continue to focus on that side, practiced oak demand in the real economy getting things going. Rather than worrying about the spike. Anna good to see you. Thank you very much for your perspective. And for joining us there from hong kong. Lets turn to technology, apples annual Product Technology took place in San Francisco yesterday. New offerings include revamped iphone, ipad, apple tv. Our head of digital joins us now for more. Good morning to you. Lets put all of this and contact. The buildup to the holiday season, it gets a lot of attention. Understandably. What were the important reveals . Was it all about the iphone . People report to it as the event in september. This was an event where the iphone was the least focused on at the event, in comparison with a couple of the other investments. Because it physically looks the same, it has interesting features in terms of the screen being able to tell how hard your pressing it. Which opens up a whole new anna we talk about this yesterday. 3d touch. It has advanced from the watch into the phone. I think the most important thing we saw yesterday was the announcement of the ipad appropriate this is an entirely size 12 inches across. Anna you could say it is just another size of ipad. But it is crucially aging at a business market. Nate it is aimed at a more professional market, as well. One of the key difference is about this is that contrary to everything apple has done the past, it has a stylus accessory with it. This is something we did not expect from apple. A stylus with an ipad. To be fair, it is not included. It is an optional extra. But what it allows you to do is use the tablet is more graphics tablet. It has the force sensitivity, see you can use it for more creative means that you can on the ipad which you would you still use a finger on. Some upgrades, processor improvements, all of the things we expect from apple. The ipad is definitely want to be a big focus. Anna their tv product, as well. In attempt to make up for lost time perhaps . Hobby project . Nate the word hobby was not mentioned. Anna hobby no longer. A serious endeavor. Nate we expected this renewed focus, and on the apps. That is it what we got. I Huge Investment now in trying to build up the apple tv as it next big apps platform. It will have a store, developers are Getting Software to build the apps. Will have support from fashion, thes browsing closlo stores the app. App nate, good interview. What apple has been saying over the last one for hours. Coming up on the program, position day of the bank of england. No rate changes expected. But will the minutes show employeesark carneys are as stagnant about china as he has been recently . We look ahead to that. But first, a rate cut from a central bank in new zealand. It slams the kiwi while the aussie dollar has a big strengthening on strong job numbers not economy. We will have a look at those numbers, after a short break. Anna welcome back, youre watching countdown. It is now 6 14 in london. Here are the stories you need to know. Apple has unveiled a wideranging lineup of new products, including updated iphones, revamped tv, and a new ipad. Ceo tim cook showcased the products and San Francisco. Leader told the World Economic forum that he is confident the economy will hit its target this year. And he sees more opportunity for challenges. He says the situation is stabilizing, and urges people to have more confidence in the worlds recovery. He said that china has no interest in a currency war, having much more to lose than gain by it. Says thatinstitution u. K. House prices will rise twice as fast as it previously anticipated this year. That is a shortage of property widened the balance between supply and demand. Values will increase 6 in 2015, up from 3 addicted at the start of the a. The monthly house price index rose to a 50month high of 53 in august, from 44 the previous month. Brazil has been cut to junk. Latin americas largest economy lost the investmentgrade it enjoyed for seven years, after Standard Poors cut its rating. It highlights the economic challenges facing the country. And the trouble plaguing many of the emerging markets. Here with more on the rate change, caroline hyde. Good morning, how are the bricks come rolling . Caroline russia previously cut by Standard Poors. And the other one in focus, brazil the leader of the brakes in terms of which one comes at the beginning of bric. Cut by just one rating, sending it into junk. And also worrying, a negative outlook. Ment, moodys and fitch still at it investmentgrade. Anna the challenges the country faces, s p worried about the fiscal challenges in particular the Government Faces . Caroline the list is quite phenomenal. But we are in the midst of a recession, the deepest in a quarter of a century. But the growing budget deficit, you are right, this is something that Standard Poors really signals out. Effectiveness of been downgraded not once but twice july and august. Six weeks, and Standard Poors highlights the 2 surplus. Expecting the white corruption charges that are engulfing this entire country. The politics is also something that Standard Poors has really highlighted. The probe of course embroiling the president. The president herself while she whichairman of petrobras, is of course the state owned oil company, she is within the probe. Her popularity at a record low. Going forward, just a fracturing of the overall collision. Clearly, these are things being cited. Economic woes are there to be seen. The currency really slumping more than will the shows 60 over the past 12 months. This is the dollar gaining, the brazilian reout slumping. That showing of course we are in a recession. And the bond market, showing the risk that is escalating borrowing costs and yields a record highs. For local bonds and for credit, the cost of insuring your brazilian debt, that too at a sixyear be. Anna where other reforms . They have been much promised. Caroline a technocrat was brought in as finance minister in january. He has not been able to get the reforms through. His mandate was to shore up the finances, but he failed to do. Hasnt he . Conga as has been fighting him, because of in popularity, they have been rebelling against the austerity plans that is voting down just this week the delayed vote on bills to increase revenue brought in from incentivizing resilience to repatriate money, allegedly part illegally abroad. They have been fighting back with vetoes. But rebels try to put in salary boosts for federal workers, trying to lift the retirement payouts. That is very antiausterity. But that is what we have to get through, get the austerity drive going. He made a major email statement yesterday when he said that brazil will take late assertive action to boost efficiency and productivity to spur growth. The question still remains, will he get through . Back to you. Anna caroline on result. Let us turn to new zealand, the central bank there has cut Interest Rates for the first time in three months. Lets go to Ian Macdonald in sydney, ian, it was only a year ago they were raising rates. Now they had to cut them three times in three months. What be disingenuous to suggest they get it wrong . Or would that be the benefit of hindsight . Ian hindsight is a good thing, isnt it . Last year, the central bank in new zealand look ahead and saw soaring gary prices, construction was extremely strong. They had Housing Market that was really turning into a bit of a bubble. And so they hiked quite aggressively, 12 months on, we know the dairy price and prices in general celso sharply and completely blindsided the reserve bank of new zealand. So it turned up to be quite different than what it expected. So they are hurrying to cut rates and obviously we had three cuts now. They are seeing a much weaker growth outlook, they cut one percentage point off their growth forecast for this year, from just over 3 to just over 2 . That gives you an idea of just how quickly things are changing your. Anna and how much longer do you think rates will go . There are some hints that this is not the last in the cycle more there . Ian the central bank here every ee months is a forecast for Interest Rate. Is an indication of the benchmark growth. It suggest one more cut, and escrow bank has basically said that the Global Outlook turns out to be weaker than expected. They expect they could go even further. And this incoming governor said they are plenty of ammunition, we have remember their cash rate is still, even after three cuts, is a 2. 75 . Still well above the main Interest Rate of most other developed nation. Anna lets talk about austria. We had jobs data out there. Ian that is right. We were thinking there was a possibility that implement rate could rise a bit because the government had changed some of the Social Security programs, which is when to push more people onto the jobless cues. But that did not turn to be the case. And what economists are saying, the rate in august, 6. 2 looks to have stabilized. Now with an Unemployment Rate roughly around 6 , maybe that is where it will stay. One of the things that is helping keeping a lid on the jobless rate, despite the fact that Economic Growth year is not that strong, around 2 , is that wage growth here is incredible low. It is basically recession levels. Workers are not able to get any kind of pain increase out of their bosses. That is helping to keep more people in work, keeping the jobless rate from going much higher. Anna ian, thank you very much. Joining us there from sydney. Let us continue our conversation about what is happening to interestrate, all things macro, lets talk to peter. He is Commonwealth Bank of australias senior currency strategist. Thank you for coming in. You seem wellplaced to comment about what were seeing coming out of both his economies, whatever the data or the Interest Rate is. Dealing with the china situation in some way or other. China, itisnt just is the emerging world. So they greeks in particular, theyte 30 of global gdp, contributed 60 of the growth since 2011. We are seeing a slow down there, obviously brazil iin recession. Russia is slowing. This is coming at a time when supply and Commodity Markets has been ramped up. And that is obsolete putting downward pressure on commodity prices. And that is affecting the terms of trade and were seeing the currencies with those producers fall. Anna you dont see that changing. No turn in the commodity cycle. Ist yesterday, you downgraded think it was your forecast for the new Zealand Dollar. Peter that is right. We downgraded our views on china yesterday. It all feeds into one another. We are expecting that commodity story to remain in place for a while. That will keep kiwi and obviously the aussie under pressure. But the fed in the background coming through. We are probably in the minority, were not expecting a rate hike next week. We think they will look at the current state of play and the global backdrop and sit back and assess things. And wait until the end of the year before they raise rates. But ultimately, it is still a story of when. They dont like being at zero. But that will see yield spreads compressed. We are cutting rates again today, we expect more from them. They are on hold for the for seeable future. The spreads are going to compress, and more down more pressure. Anna you mentioned the economic recovery in china, since a summer, we have in wrestling with just how quickly is the economy slowing . How much growth can they eek out . Give us your forecast. 7 , now there are questions were the number is going to land. But it matters materially, whether it lands at 6. 5 or something more like 5 . Many people are not distinguishing between the two. Peter the official numbers will come close to 7 00. They seem to make the target. It does show a material slowdown. That shows us the underlying aggregate demand is not going to be increasing. At best, we will see sterilization coming through. But when you have a large rampup in supply and Commodity Markets, the increase in demand is not to be enough to offset that. That will keep the commodity complex under pressure. Anna we should be surprised that china is slowing. Because of the structural changes, should they be going more slowly question mark you think with that global Wishful Thinking . Peter i think the Market Sentiment is slumping. And the reality is another thing. The chinese growth at 7 is still phenomenal growth, given the size of the chinese economy now. Anna the premier said there was nothing in it to have a currency war. We should not interpret the actions of august 11 as any kind of salvo in the currency war. You see it that way . You see is going that direction . Peter i think currencies are becoming more important for Central Banks. Growth, inflation, look at the ecb recently. They made the mention that the euro is stronger, the inflation backdrop is going to come into play once again. So it does come into a lot of the central bank thinking. Anna peter, thank you much. The to have you. Senior currency strategist. Coming up, the china factor. We look ahead to the bank of england and how prominently it will have features the subject of china in the bank of england decision. Stay with us. This is a great place to work. Not because they have yoga meetings and a juice bar. Because theyre getting comcast business internet. Comcast business offers convenient installation appointments that work around your schedule. And it takes done. About an hour. Get reliable internet thats up to five times faster than dsl from the phone company. Call 8005016000 to switch today. Perks are nice. But the best thing you can give your business is comcast business. Comcast business. Built for business. Anna welcome back, youre watching countdown. 6 30 in london. Here are the stories need to know. Apple has unveiled a f newranging line up o products, iphones, tv boxes, and a bigger ipad. Chief executive officer tim cook exhibited the product and San Francisco. Stocks are lower 2 . The chinese premier leader is announced it will open for Exchange Markets overseas banks. The noodle make it easier for other nations to hold you on assets. As it pushes for the currency to win reserve status of the imf. New Zealands Central Bank has lowered Interest Rates for the first time in three months. Cut to 2. 75 . Was the governor said there is potential for further easing if needed. And he is looking very carefully at data coming from china. The new Zealand Dollar fell more than 2 on the news. Markets,work into the over the last 24 hours, lets get the caroline hyde. She has details. Caroline and last but 33 hours. The rally that was once there is over. Have a look at u. S. Stocks yesterday. The is the s p 500, why, data was too good . Saw aayed up, we suddenly record numbers, and the volatility that we have seen sparked so often back in vouge. Gue. Does this mean that the job market is too strong for janet yellen to delay the rate hike we also see the asian contingent selloff. That is despite the yen weakening on the more stimulus. Stock selling off despite the weakening, that is not always lead to the selloff. The index is currently down. Getting back half of the gains we saw yesterday, clawing back into negative overall. And we of courts have marketseing slumping for the 42nd straight month. Producer prices have fallem n, underlying the weakness of this particular comic. Adding to the woes, brazil comes along, and we see Standard Poors cut their debt rating. This is what is happened to the brazilian currency, slumping versus the dollar. This is the dollar rising, the brazilian currency losing value to the tune of 60 on the dollar. And emergingmarket back in focus. We you see the stimulus, have seen expectations driving the yen lower. Pushing the kiwi, the new Zealand Dollar lower as well. By some 2 . The question is, will we see any hints of stimulus or indeed to stay holding of fire from the bank of england little bit later . Im pretty sure it might be a down day for european markets. That you. England willk of probably leave its key Interest Rate unchanged when minutes are laced later today. We are joined by jamie murray, let us welcome our guest host for the next hour, bob. Have you on the program. Thank you for joining us. Jaime, thank you as well. Let to be init terms of those on the mpc voting for rate hike . Jaime 8 to 1. Anna 8 to keep it on hold. Jamie exactly. We dont think that he has changed his mind. We dont also think everything will be right for the government, no reason for him to change his mind on either. And at this juncture anna any indication about how concerned the mpc, members are about whats going on in china the slowdown and turmoil in Global Markets . Mark has been fairly relaxed. Barelyim expecting a nuanced argument. Effects, the Global Demand is lower. But also the effects are external demand for export. Working opposite directions, lower oil will boost demand. Isaverage, on balance, it not clear whether it is positive or negative for the u. K. And i think that is why mark mark is relaxing. Anna bob, what would you look for the bank of england to consider in relation to china . The volatility and a slower growth, will that stay the hand on the rate . Bob it is possible. It is a good excuse. Alternately, i dont think there is any real inflation in the system anyway. I do not see i do not see a clamor for the china story. That gives central bankers another excuse to pass. Deep within their soul, they know there is no inflation out there. Come because some guests on and talk about early signs of inflation bubbling under the surface. Looking at wages in particular in the first quarter. Bob i have been on the show a few times. I have been told rates have normalized, inflation is here. It has not really happen. I think the china story is important because it tells you about Global Demand. That tells you about that also global capacity, there is too much. When you have accommodation anna jamie, what is the expectation in the u. K. . Jaime we are actually slightly less optimistic than inflation will stay low than bob is. But i think it is different now to previous years, wage growth is picking up. We are seeing it come through. To the extent that that is this rate we expect increase in early 16. Anna jamie murray, bloombergs chief economist. Bob, talk about the bank of england. China quickly rears its head. We heard from the premier today, he talked about the grocery. He has urged people to have more confidence in the global economy. Would you agree with the sentiments . Bob i guess if youre on a 50year timeframe, that is fine. On a shorter timeframe, if you are looking at the president next year in the u. S. , it may be more issue. I think ultimately, the reasons behind chinas i guess woes at the moment, theyre not shortterm. They will just go away. Ultimately, china is at the very sharp and of the problem we have got, insufficient Global Demands versus the amount of capacity that goes out there. Anna it was a fastening day trading in the u. S. History. Ofbought home some trends, course that meant that equity was sold off. People worried about how quickly Interest Rates might go out. But at a time when there are increasing signs of global slowdown in some places, we have this china data on factory prices overnight. It takes a total of 42 months, i think, we have the new zealand centralbank moving on rates again. Brazil being downgraded. How gloomy are you, then, on the Global Growth story . Be i think it used to precrisis at 4 per anunum. Theink were headed toward kind of number i thought we would end up at, the mid2s. That me to develop markets kind of stabilize. The u. S. A stabilizing at a trend of around two. Europe is probably at one. But the emerging economies are converging down to our kind of levels. So i think what we are really witnessing is a convergence of Global Growth. Anna is a very longterm story . Or do we get another kick start a Global Growth from another region, for example africa . Of thethink the bet investor base, india is that kind of next story. I demographically speaking, they will introduce 300 million workers into the labor marker in the next 2030 years. India should be the next big story. But what is fascinating, is that people are so desperate to downplay china. As a kind of Global Growth fromr, what people forget, 2009 onwards, these sorts of Global Demand growth was china. China undertook three quarters of a trillion dollars, multiply that with many debt, that was a thing that major many grow very strongly in 20102011. That was a stuffed up with brazilian growth and record levels, swedish growth at record levels. The longterm story for chinese, and growth generally, is converging down to a more normal level. Down to 6 comes next year, that kind of area . Another one of those guests who tells you the official gdp number and there is a real gdp number. I personally and im not the house view on this. The firm has a smart bunch of guys looking at this, but i personally look at china and see growth is probably sub4 . I think in real terms. And i think the trend is lower. Anna bob, thank you much. He stays with us for the rest, 50 minutes. Us turn to tech. The turns to tech on upgrades and features on the iphone last night. Remember that old iphone 6 or six plus you brought . That is outmoded. Apple has introduced the new six asked. The design is unchanged from year ago. But under the hood, theres a new engine. The handset is running 70 faster. An apple is heavily touting a new feature called 3d touch. Map as usual, but perform a deep touch, something new happens. Like right clicking on a mouse, you get a series of shortcuts. Press hard on the mail app, you see options like right an email or inbox. It does other things, as well. Press hard on a photo, a gives you a glimpse of video. Apple calls it live photo. The iphone cameras are getting upgrade, the back facing one is now 12 megapixels up from a. Record video and a high quality. And the selfie generation can rejoice, is getting a highpitched boost. The come in silver, a, and gold. They call it rose gold, melissa greeted his pain. It starts at 199 for 16 gigabytes at a twoyear contract. Sale andlus goes on 50 countries. Anna coming up, the chinese equity market rout is just the first stage. That is a message from billionaire oleg, the president of the worlds biggest aluminum producer. We get his view, next. Ann welcome backaa welcome bac. Apple hasveiled unveiled an updated iphone, a tv box, and a bigger ipad. Seo tim cook showcased the new products and San Francisco yesterday. The market was generally weaker. New Zealands Central Bank as lowered Interest Rates for third time in months the benchmark rates would cut basis points to 2. 75 . The governor Graham Wheeler said further easing is neater. He is looking very carefully at data coming from china. The new Zealand Dollar fell more than 2 on the news. Brazils Credit Rating has been cut back to junk status, the s p to double beating plus. Warning that another cut is possible. It has been hit with a worsening Economic Outlook and stability politically. China will open its domestic foreign Exchange Markets to Central Banks. It will make it easier for other nations to hold assets, as economyiggest Research Status at imf. The first data the drama unleashed by the august 11 evaluation. The is a message from oleg, president of the worlds biggest aluminum producer. He says the real risk comes from the debt market. He spoke to stephen at the World Economic forum. The first phase of the drama in the equity market collapse. Because of the sentiment, risk, among the hedge funds and now we quicker thanelp their competitors. Problem,nk the main what is the debt Market Reaction . If you have so many industries, and the companies here, how the vehicle to serve the debt . What is the Interest Rate if this waser or later, a fundamental question, they give the literature to everyone. That is why you can see so many new capacity bills pushing the pricing down. Sooner or later, it will be in crisis. They ran out of money. This is a key issue how is the debt market want to deal with the overcapacity and the fall in prices . Anna still with us, senior independent client advisor bob. The equity market selloff that we saw postaugust the 11th, the first stage of the debt market. Is it something you agree with . Underwent ak china i massive fixed asset boom as a response to the Global Financial crisis. That was her way of getting out. It was largely debtfunded. I think the bigger issue is the amount of foreigncurrency debt in the system. Debt borrowed by chinese corporations. I think that is one of the issues that see aif he were to further weakening of chinese currency, this debt will become more offensive to service. Singh china does everything to gain from a currency war. Bob i think theres more to come. The first thing to get across, i think, we sat there believing that central bankers globally are ahead of the curve. I think they are reactive. What we saw in china this year was kind of very disappointing. Playbook the greenspan and tried to play a precisely, pump up the equity market with margin. Hopefully, that creates a wealth affect and consumer spending. It did not work. So we are now kind of, i think, i dont want to say the last chance but the last really viable option for the chinese was to the link the currency from the dollar. We are globally and a kind of fx war. No one wants to admit it, everyone downplays it. That is the reality. We will see china go again. We see it go again in exactly the same way . Maybe not. Anna you think it was attempt to boost exports. Or was a part of this more strategic move to be seen as part of the global currency market in the imf. Bob i think the imf debate is interesting. I come on the other side, i think the response of the chinese to the imf saying no not yet, they are saying if youre not going to let us into the club, we are going to disrupt it. Is that theue currency was so underwater, or the equity was under margined, they need a lot of cash to pay that margin. How they raise cash . They dumped goods. The have a lot of dumped on the west. What else and do that . A weaker currency. This is the beginning, i agree, of something. There is more to go. Of that accommodation coming out of china, Consumer Prices going up but factory prices looking weak continually weak for 42 months. That makes things tougher for chinese businesses. Issue isink the cpi more around food, then anything else. Policymakers in the west and to ignore food. Food is a much bigger part of the battle. I think thehina, big you for me is that the Growth Strategy Going Forward in the short term, and that is the next few years, has to involve exports again. Domestic consumption, is it going to take us out of the slowdown . Bob thank you very much. For something entirely different, lets bring in pete norman from bloomberg. Com. A story with a very different flavor. What is that flavor . Im still trying to work it out. I apologize if people are eating breakfast. Edible insects. Pete it is a cross between bacon and prawns. Entrepreneurs getting off the for not new food source only europe but around the world. It is insect farming. Bush,this is a real life tucker, child. Pete i guess at some level, prawns are just big insects. Anna there are big environmental reasons to be excited. Pete estimates of global population of 9 billion, livestock is incredibly inefficient. Global fish stocks are declining. An alternative sources can be flour, protein, insects. And the Conversion Rate is 12 times more efficient than it is with livestock. Anna and how big a business is this at the moment . Pete it sounds small at the moment. But for your around 2020, they expect around 73 million. It is going in several decades, there expect a lot. It is more advanced in startups with america, theyre putting the insects and snack bars. A lot greateris, potential for to spread. Anna one way to add crunch, i suppose. Thank you very much. I will tweet that story out this morning. Thank you very much. Et us turn to technology, return to the story of apple the tech giant unveiled a new ipad and San Francisco on september the ninth. Redstone has a handson look at the new device. Last year, apple went big with the iphone 6. This year, bulking up the ipad with a jumbo sized tablet called the ipad pro. Shift ins a big direction, it is big. Screen. H it also has a stylus, and accessory to steve jobs was ridiculing as a necessary. You can open one app and then split the screen, accessing all your other apps. The tablet is running a chip that apple says is faster than 80 of the affordable pcs a chip. There are four speakers would automatically recover the sound depending on how you hold it. Apple islimeters thin, also taking a page from the Microsoft Surface with a keyboard accessory. It connects with three magnetic circles called the smart connector, which transmit data and power. The ipad pro is aimed primarily at corporate customers and run specially tabled software. It starts at 799, and an additional 99 for the stylus. It goes on sale in november, and apple is hoping the pro can give a boost to his tablet sales. At the consumer electronic story, lets talk to bob about what he is interested in. Are you interested in the longterm trend . Bob im too old for that. Anna not too old, not too weird. Bob the deflationary impact of technology, it is a wonderful thing that is made us more equal, but it is very deflationary. Focusing away from apple in the consumer stuff, one is health care and how we use technology to improve those costs significantly. The second is energy. Nuclear fusion. Anna bob stays with us for another half hour. Lets take another short break. As we head to the break, we had to asia for an update on trading. He stills premier says has the policy towards the deal was slowing growth. We get an update from the asian equities session. We will see what that means for europe, as well. Plenty going on at the World Economic forum there. That man you just saw, centerstage. More on him, in a moment. Anna the concern about Slower Economy has set the stage in six years. How the brics kabul. Standard poors cap brazils junk as latin americas largest economy faces its deepest recession in 25 years. For the first time in three month, the Central Bank Governors signals another cut could come as growth slows. Apple means business. The tech giant unveiled updated iphones and revamped tv sets. A bigger ipad. Anna countdown. Welcome back. Anna back. Ing you are watching countdown. Moves into some of those safe haven currencies. It started with the u. S. Yesterday. It started what it started from what couldve been a good place. A jobssurvey survey. Producing the biggest increase since 2000. It got everybody wondering about where the fed is going to increase Interest Rates. Weve got these uncertain scenes around the world. Chinese pti numbers. Result receiving a downgrade to its Credit Rating. New zealand, ive got a chart here. New zealand centralbank cutting its rate for the third time in three months. Falling more than 2 in the aftermath of that. That macro uncertainty around what the fed is doing. Lets put that in perspective. Lets get to the latest in the asian training day, sherry and a standing by. We had that disappointing chinese data. Factory prices. Shery good morning, anna. Those that the pointing data being that disappointing data and felt through the asian markets. Eversing two days of gains the nikkei leading those declines, falling 2. 5 . We had disappointing data out of japan with machine orders and pti data, falling below expectations. For the fourth time, were seeing japanese stocks are wider than chinese stocks. Jumping to the highest since 2011 earthquake. In china, after that bpi data came out, shanghai composite losing. Ang seng down commodity stocks are taking a hit in china, where those ppi for more than 40 months and tumbling the most in a six years. Analysts saying we are seeing profittaking, after the recent gangs recent gains in hong kong. We are being told that sources brokerages have been asked to jump into the market. Sessiona finished the , after we had better than expected jobs data with the economy adding 17,000 new jobs. We are expecting them to add 5000. New zealand is bucking the trend, finishing unchanged. Was is after the key rates cut by 25 basis points. Percent. We do not see any real change in the equity markets. Plunge. Eeing the dollar coming down 1. 7 and the trading cents trading at 6287 u. S. Cents. Back to you, anna. Anna shery, thank you. Shery ahn joining us there. Has debtsg says china dealing with the companys pressure. It will open its offshore currency market. Market. The. China will open up even more our policy of investing abroad will remain unchanged. These specific ologies will continue to encourage more Foreign Investors and they will expend aspects access to market. Fastestey rose at the price fastest pace in years. Enda curran joins us live from hong kong. Any plans to jumpstart the economy . A lot of people talking about some of the weak days. Enda he talked of the economy and its fundamentals. No chance of a hard landing, whether or not that would convince the markets remains to be seen. He made direct commentary on the yuan. He said china is not interested in the currency war. Market will not weaken much further from here. He said that china is rolling out stimulus. They are cutting Interest Rates here it there rates. Though he is talking up the economies fundamentals, at the same time, they are putting a lot of money into it. The figure between chinas Consumer Prices and factory gate prices is at the widest in 20 years. What needs to be addressed here . Eden it is a pretty nasty split. The deflation that the factory gave. Even while Consumer Prices are going up, that means the real cost of borrowing is going higher. Expand. T to invest and this is something that they would have to look through. They will need to do something it willalleviate mean more Interest Rates to go for. Perhaps more targeted lending measures for the central bank. They try to get the economy revved up as we head into the years and. Usa enda curran joining from hong kong. Where getting breaking news from the u. K. We are getting breaking news from the u. K. Anna yesterday caroline focusing on supermarkets. 10 year. S into the we get the first earnings from the new chief executive. It is not looking too pretty. We are seeing first half at 17ed pretax, coming in Million Pounds. The dividends also missing expectation. A myriad of mrs. When it comes to morrisons. Closing 11 further supermarkets. Weve heard from many analysts saying he is no shanking violent no shrinking violet, this new david potts to the home here it home. And 87 Million Pound and provision on contracts. He is exposing assets to the tune of 81 Million Pounds. That is raking in the profits. The turnaround that Olson Phillips had been 18 months into, he is having to turn around again, taking town with sustained investment. Selling 140 of them m locals, because it would take too much investment. They are going to be sticking with online presence, another area that more since is very slow to get into. More since missing out on estimates. We got one of the biggest closing retailers coming up with numbers and it rather different picture they have painted. We are seeing a better first half. They say their brand sales were up. Profit before taxes up 7. 1 . The margins will improve as well. The second half will be in line with last year. The interim dividend is coming in at 53 per share. That is slightly missing forecasts. Sales back in line, 1. 9 billion pounds. Next, meeting the mark and slightly surpassing it when it comes to Profit Margins missing the marks on most of the areas. Potentially, it could see improvement in the second half of the year. Anna caroline, thank you. Bob, lets talk about the fed. We referenced it in passing. We have not dealt with it head on. Last time you came in, you talked about there is no need for a fed rate hike. You still feel that way i assume . , i gete focus on jobs it. The reality is look at the overall economy. There is no inflation in the system. I think the reason the fed wants to hike is now pretty clear, it is not about inflation, it is about having some tools and ammunition in the policy toolkit. Anna what you think about the argument . Bob i think the fed, when we talk about policy options in china, i am not convinced there are many. I think they seem kind of week. U. S. Is ther the same. They are going to have a recession at some point. Still atst rates are zero, what can the fed do . Anna in that sense, you have some sums the woodyard meant that they need to normalize whatever that means . Bunko there are a bunch bob there are a bunch of factors at play. There is a reason why the fed is keen. Reservey, the federal would admit that qe has helped speculative activity and markets. It hasnt done a whole heap for the real economy. They would rather get away from there. The risks are the idea that we can raise rates that can give people a bit more comfort. Anna i did hear that argument yesterday. Bunko i dont think its a great argument. Anna people say that if you raise rates, people take the prospect of raise rates was seriously and go and invest in something. Heard from the bank chief economist, costing the fed. Cautioning the fed. Is that something you think is a real risk . Bob in the shortterm, i think we are going to get volatility anyway. Equities, based on where the u. S. Close, is humbly a 10 downside in the shortterm. If the fed doesnt hike, i think the market will say the economy is that weak that we cant handle a bit of volatility in china . I think the market will use that as an excuse. Anna is a realworld when we say is it a weird world when see the 70s market up will we see the japanese market up one day less liquid bob and less efficient. [indiscernible] that plus accommodation of little liquidity. Bob janjuah stays with us a little bit longer. Coming up, it is decision day at the bank of england. No rate change is expected, that as mark carneys colleagues a sanguine on china as he is. Apples new gadgets failed to impress investors. Stocks went down 2 after the big reveal last night in San Francisco. The market is generally weaker across u. S. Equities. We take a look at the new products. Anna looking back. You are watching countdown. Here are the stories you need to know. And advisor to japanese Prime Minister says the bank of japan should expand its qe program. He says the boj should it is the program by 83 billion. He says the bank policy would be a good opportunity. Have as rates australias jobless rates have dropped. That suggests record low Interest Rates for falling currency and weak wage growth are encouraging hiring. The new york Credit Rating has brazil enjoyed an investment for seven years but has been hit with a worsening Economic Outlook. Apples annual Product Launch took place in San Francisco last night, new offerings including versions of iphone, ipad and apple tv. Shares down 2 after the big reveal. The market was weaker. The 12 inch ipad pro was revealed by a new digital stylus. Apple said back things about the stylus in the past. In 2007, they talked about the stylus ring a bad idea. A lot of commentary about whether that is still the case. This is seen as an optional additional product. The ipad pro is aimed at businesses and design. The stylus didnt come with the device. It does push apple into a new direction it direction. They start they charge extra for the stylus . They do charge extra for the stylus. If that is case, because it is another thing. Here is an interesting anna here is an interesting friend me relationship. Mean for mikehat soft owned for microsoft owned type of business . Nate bill gates appeared looming over the crowd as an apple keynote. This means apple is putting the ipad pro into the eyes of businesses and microsoft is already in the eyes of this assist. It is a new direction for microsoft. Torosoft knows if it wants keep generating revenue from businesses, it needs to be open. The direction that this is want to go, to buy more tablets. Mike soft needs to be where they are going. This is one of the ways they can do that. Anna where we and Corporate Investment cycles . Are we primed for corporates to go out there and spend cash piles on large amount of new technology . Bob that is been going on anyway. Productivity from is already in the markets. It is played out. It is been a incremental thing. 3d printing, once we perfected that, that could be a significant game changer in the production process. Jumpnk in terms of a big to Corporate Investment, i dont see this is a major factor. Anna apple tv has been a hobby no longer. Nate it was referred to as a hobby. It set the stage in the middle part of the presentation. The idea is now apple giving the tv platform its own app store. Developers need to make new software for apples ecosystem. It is a step forward for television. Definitely a step ford for apple. Definitely a step forward for apple. Anna thank you very much. All things apple. Lets take a look at a few of the top stories. China, the s p downgrade to brazils rating. New zealands rate cut. All of that playing into the mix. Still with us is bob janjuah from nomura. We are going to be speaking to steven major, head of Global Fixed Income research. Stephen, just getting comfortable. Good morning to you. Great to have you on the program. Lets talk about the Interest Rate environment more broadly. It seems people took the good chance jobs report, as a to question how could rates go up in the united states. You dont see the fed moving in september. Steven whether they move are , there are many moving parts. Be this ideao theyre getting better, but im not at all convinced. The data dependency traps the fed. Inflation on with the verge of a negative print. The gdp much less than what they forecast a year ago. None of it makes sense. Then there is the international backdrop. Five or six weeks ago, it was clear that things were deteriorating in asia. Worse. Got much the rate cut in new zealand, the downgrade in brazil, japans data, challenges all of this. Other countries are feeling the pressure from the china slowdown. Is it the right time to hike . Absolutely no. If they did some thing, maybe they could mitigate the rates by indicating what general value might be. Anna what will that mean . Steven it is saying more about the path, because were talking about this path. ,f you know what the destiny is then you could draw a line between zero and two and figure out the pace. Bob their hiking rates without trying to have an impact. They are trying to hike rates without having an impact. Anna think things do you think things are deteriorating . Steven when it comes to the treasury market, the domestic data is mixed. , because of the impact of china, are quite conflicting. There is a private sector flow out of the country. You can see the reserve numbers going down very sharply did does it mean they are selling off treasuries . No. There may be some evidence of it. Some of the spread moves at the front end. I guess, the flows are going somewhere. When the money comes out of the country, it has to go somewhere. Like it is all going to manhattan real estate. It seems there is a private i heardlow here it bob the selling of treasuries is going on. As and when the corporate sector who has wrote the cash cannot refund, the domestic dollars there. The rrr rate is cut. That money has to come from somewhere. Anna if were good to see any stimulus from china, it will be a cut from the travel are a cut from the rrr. Steven that is a very hot and very e. M. Kind of rate. Anna how much are you concerned about japan . And whether they need to see more . The bank will go again. They may go again this year. Im not sure whether the qe is an answer to any of these problems. Athink if we are looking alternative options, i dont see many in japan. Think credit will have to go again. I think kuroda will have to go again. Steven i think this is one of the ones that doesnt work. Hsbc,steven major from head of fixed income research. Bob janjuah, thank you for spending the last hour with us. Great to have you on the program. Coming up next, it is decision they for bank of england. What to watch in the minutes. Of much is this view, lack . We will have much more on that next. Anna look him back. It is 7 30 here in london here it here of the stories you need to know. And advisor to japanese Prime Minister says the bank of japan should expand its qe program. Reduce the boj should the program by 83 83 billion. Almost 1 akened against the dollar after yamamotos comments. Australias jobless rate dropped. That suggests record low Interest Rates, a week wage growth, all encouraging hiring. New Zealand Central Bank has lowered Interest Rates for the third time in three months. The benchmark rate was cut by 25 basis points. Governor Graham Wheeler says the potential is needed. He is looking at data coming from china. The new Zealand Dollar fell 2 . Brazils Credit Rating has been cut to junk. Another cut is possible. Brazil enjoyed an investment rate for seven years. It is been hit by a weakening by worsening outlook. Shery ahn is with us. The runthrough of the latest in the trading day. Shery thanks anna. Commodity producers in china taking a beating today. Stocks falling across the board after producers prices tumbled the most. We are seeing the hang seng in the following. More than 2 there. We are seeing hang seng index falling across the board as well. Analysts saying we are seeing profittaking after those recent gains. Of course in hong kong, we are seeing encourages tumbling. We have sources telling us they were asked to add 15 billion to that market rescue that authorities are trying to implement here in chinese markets. Securities down more than 3. 5 . Quote i do not down 3. 2 . Today it was all about currencies. We are seeing the Australian Dollar falling. The Australian Dollar, although trading above 70 u. S. Cents. It is gaining unchanged at the moment. At 930 when we had jobs data out of austria showing the economy, the Australian Dollar spiked. Currently reversing those losses that we saw earlier in the day. The kiwi dollar though is weakening, falling 4. 1 . We are seeing an interesting move with the japanese yen as you mentioned with Economic Policy adviser to the Prime Minister saying the october 30 meeting would be a good time to ease the yen. We saw the yen weakening there. 102. 69. Ading at anna think you very much. All of that building into the european session with seven minutes away of European Equity trading. Lets see what is happening on the futures. Weaker across this european start of the trading day. No surprise when you look at what happened at the u. S. That ripple being taken as well. Not a payroll report. Job openings report. It is seen as a good number but that raises questions about how quickly the fed would increase the Interest Rate. Been a fairly weak session over in asia. On the back of that, increasing ongoing battle of the economy. Joined bye, were jamie murray. He is with us on set. Jamie, what unchanged,. That is no surprise. What will be interesting is the split. How many people voted. Dissenter. One person arguing for a rate hike. Jimmy theyre not expecting any change. It is possible that could be jeremy , they are not expecting any change. The important thing is to focus on the language. The way they describe the events in the emerging markets, particularly. We are expecting a nuanced description of those developments. A bit like the ecb recently as well. We expect them to say china is slowing down, it is reducing demand of oil did it boosts incomes. It lists the mods. China is a small share of the u. K. s why anna do you think that is right . Do think the bank of england has a reason to be relaxed . Steven it is bad news. The exports are relatively low. Compared to germany. Our performance is quite weak. There is a silver lining. The exposure is less. Maybe mr. Carney is onto something. Immune to what is going on in the rest of the world. Policy across the globe is being affected. Be quitet would dangerous to say the policy is not affected at all. The u. K. Is not going to move dependently of the u. S. It is possible for the u. K. To hike rates at any time. International developments are pretty important. Anna windy expect the bank of england to increase interest . Jamie it depends on the fed. They look at the mystic factors they look at the mystic factors. Domesticook at factors. We think wage pressure will continue to build. Anna what you think . If you think theyre not going clue as would that be a to what is happening in china and the slowdown . There is one central bank that is not going to hike, it is the ecb. They are still making baby steps on the easing path. Countries like the u. K. , and poland, denmark, sweden, all on the periphery of the eurozone, there is just no way that can be a tightening. It is the main trade block. Im confident there is no change in u. K. Rates or a long time. Anna a long time. It well into next year. Jamie, thank you very much for joining us. Stephen, lets carry on, talking about emerging markets. Analysis on how they have fallen. When those falls are taking place. If you look at the brazilian right now. It is fallen 30 today. Last 10 in the has been in the last month. Steven you see the year moves, there are many currencies that have moved 20 or more. Where thea few largest move was in the last month. ,f a currency has fallen 20 and 10 has happened in the last month, it must matter. These currencies are moving so much, most of it has been recent, so they cannot know what the data impact is on the economic data. The incoming data not verify what is going on for some weeks or months here it my point is there is a dramatic change in terms of trade. The reason, commodity prices. Many of these currencies are in terms of trade change, look through the current account, many countries are not accumulating dollars anymore. There are shutting them. It is not just china. Reallyuntries are not buying dollars anymore. They could be ending the reinvestment or selling. I dont want to overplay this, but i think it matters to the u. S. Policy. Maybe we are looking at the term remy him and yield in the u. S. Being pushed upward. But the real rates in the u. S. , they are very high. The dollar is strong compared to so many other countries. Highyield credit spreads among a threeyear high in the u. S. Next line Monetary Policy have been tightened. Anna even if the fed one of the economies is very unfocused, the new zealand economy. I have a chart here. This is the chart that shows the drop more than 2 . Another rate cut coming through from new zealand. They have their own the mystic issues. They have their own domestic issues. Steven a lead indicator to what is going to happen next. Austria and new zealand are both key. This is reflecting what is happening in china and elsewhere. It would affect u. S. Policy. I find it incredible that anyone would think the fed is not watching this. Anna we spoke to morgan stanley. Hes a compared to 2008, this is a much more international fed then it was seven years ago. Seven is go, they had to be. Seven years ago, they had to be. Now they are much more mindful of what is going on internationally. Steven there are two main channels, one is through the dollar and what it does to u. S. Inflation. Depressingt has been. The other one is the bonds. Half of the u. S. Bonds are held by Central Banks around the world. That wasnt the case 20 years ago. That means other Central Banks can tie to u. S. Policy on behalf of the fed. That is what is happening. Anna stephen, thank you very much. Thank you for joining us. Steven major from hsbc. Coming up on countdown, well take a break. Alexis tsipras defends his track record ahead of elections. We break down yesterdays tv debate. We talked to great Capital Markets when we return greek Capital Markets when we return. Anna welcome back. Here are the stories you need to know. Apple has unveiled a wide range of new products, including updated iphones, revamped tv sets and a bigger ipad. Tim tim cook revealed the products yesterday. New Zealands Central Bank has lowered Interest Rates for the first time desk for the third time in three months. For the third time in three months. The governor says there is potential for easing is needed. He is looking data he is looking at data from china. Brazils Credit Rating has been cut to junk. S p lowered the nations rating to double b plus. Another cut as possible. Brazil and joint Investment Grade rating for seven years. Orsening Economic Outlook exclude go Party Leaders took part in a debate last night. Alexis tsipras revealed factors for a new term in government. He highlighted the cooperation with your. There is no doubt in this battle with asymmetrical powers outside of the country, there were choices they gave momentum in the beginning. It up lips it uplifted the spirit of the greek people. Wereind you the protests the greek flags in european capitals. There were mistakes. These mistakes were corrected. Nevertheless, at the critical moment we took the decision to put the interests of the greek people above the party interests. Contender anna the main contender who is rising s i reckon if the greek people give the order, we are the first party, i will go to the resident of the republic to form a government. It will be a government of cooperation. Tsipras does not want cooperation or see me. I come as a speaker, i was able to put together opinions to discuss three parties with a multiparty parliament and give the guaranty that altogether we can achieve the best. Nna lets get more today is the 10th annual great roadshow place here at bloomberg. It is to attract investors. Joining us now is the chairman of the Hellenic Capital convention. Politicalas the backdrop, we know much of the details. How does go of a job do you have to convince investors of the greek Investment Case . Our job is difficult. We are trying to maintain stability in the financial sector. What we are track to say to the investors is therefore conditions which are difficult, but feasible in the short term. To financial into political conditions. Government, the week after the elections. We start gaining some European International credibility. Financial conditions are very important. The Capital Market restrictions. Bank. Lization of the all of those things seem to be very technical, but they are interlinked. That is where we are heading. Anna how quickly can we get to any normal situation in regards to capital control . You have capital control in place. Theyre getting less by the week. Can you update us on when that is going to take place. Banks, are getting lighter by the week, not by the day. This is monitored by the government, but we play a role. Some control and resections restrictions on the Stock Exchange. What is happening is the greek investors are not allowed to use the money freely. They must invest in the new money. They must pump new money into the system. What we are doing is we have about lifting the Stock Exchange restrictions first. Starting to operate normal. Soon as theappen as elections. The minister knows that. He understands he is a caretaker. He is a technocrat. He knows the issue. We are pretty confident. The way that the new government the important thing is whatever happens during the election, the centerright are left just centerright or would have to impose the same program. Anna we have a shortselling down in place. Septum or. Could be extended again . Konstantinos i dont think so. A blinding to lift a completely as soon as clinical stability returns. There would not be a government in place. When we consider extending it . Anna had been briefed on plans for recapitalization . Do you know what is going to happen . Konstantinos we know about the deadlines. The way things are going to happen. Of whatow at the phase we call the a q ours the a q r. Establish what the needs of the banks are and any major decision would have to be taken soon. Thats why i said this is difficult at feasible, because the deadlines are there. Way down thea long road. Soon we will have to know on which exact technical means will capitalization take place. Then it will be finalized before the end of year. All of these pieces of the puzzle to come together is the end of the year. Anna the election is something we need to get over before. Does it matter who wins . Is a stability the most important factor . Konstantinos the most important thing is that is a government as soon as possible. We know there will be a coalition government. Is would it go grand coalition . [indiscernible] a new democracy which is centerright government. Two withe one of the small parties at center centrist parties . Yesterday the debate, whatever happens, we know the program of the government, most crucially on the economy, is already known. The last memorandum that has been signed recently by mr. Tsipras. Anna thank you for joining us. Good luck with the events today. You can follow the greek elections on bloomberg. There are going to be bring you full coverage up to election day on the 20th of september. Just minutes away from the start of the European Equity trading day on the move is next. Jon ferro is here to tell us what he is watching. Jonathan dax futures down 100 points. Talking a good game. China does not face a hard landing. If reactive growth slows anymore. Very clear when you look at brazil and new zealand, brazil we will talk about that. Well talk about markets. A 30, well ask the question who want to stylus . Steve jobs asked that laughing in 2007. Tim cook revealed a product yesterday the looks like a stylus. Most of its product line a little bit later in the show. You very much. Nk jon ferro will be here next with on the move. That would do it for countdown. Recap what is happening on Global Equity markets. Here is a picture across the u. S. Session and into the asian session. I am bringing up the futures for you now to can see the European Equity sessions looks as if it could be a weak one. Concerned about how quickly the fed raises Interest Rates. As we see these ongoing signs of a slow up, today we had weekday in china. We had a weekday in china. Plenty to digest for investors. I will see you again tomorrow. Jonathan good morning and welcome to on the move. Just moments away from the beginning of european trading. Slowing growth rate chinese game of chess. Crumble, and new zealand cuts. Lowering rates for the third time in as many months. The move is in the pipeline. Plunging up the back of that future. 20 seconds away. By 91 points. Lets get straight to the market open with caroline hyde. Caroline 33 hours and the rally falters. We follow it here. Risk of version, million of concerns about Global Growth. Game,still got a good but Consumer Prices down for the 42nd straight month. You have stimulus happening in new zealand trying to boost their economy. Good whent looking so you look at machinery. What kickstarter the rally . Doesdata, too strong, that mean we would see a rate hike . Clearly, risk aversion once again in equities. We get a bank decisio