Anna we have yearnings earnings to get through. Guy this is not sexist. Let me make that crystalclear. Anna it is a music reference. Guy the Australian Dollar, absolutely searching. Surging. Men at work, this is a reference to the numbers that came out from employment. Anna questions being raised, particularly in the last two months how we can rely on that data. Lets get to the breaking news of germany. Monthe the giants, as the , 2. 4 6 billionns euros is the Fourth Quarter industrial business profit. The estimate was just 2. 3 billion. , up to 3 big headline billion euro Share Buyback over the next 36 months. That was something analysts were looking for going into this. Lets get to hans nichols. He has more of the back story. Pathway ns the last buyback was about 4 billion. Dividendig headline, a increase, they are increasing the dividends to three point 3. 5 euros a share. It was that 320 it was a 320. Overall margins are flat down. This year for the last year it was 11. 3 . That margin issue which is one of the closely watched one come it looks like siemens is declining. We seem to be having the industrial productions look good. We seem to have a play for time. They have laid off 13,000 employees. He wants to be more lean and tram trim. What he does have is a play for time with this stock buyback. Let me do a couple more numbers. When we do the geographical take , 32 does come from the Industrial Power equipment. We have medical equipment at 16 . Industrial equipment at 26 . Siemens is well positioned to deliver on the plans ahead. Anna thank you. Guy anticipate further softening in the macroeconomic environment. I think he is talking about china. Anna we will be talking to joe time. , 6 45 u. K. We are getting numbers. The ninemonth adjusted net income 545 million euros. That is shy of the estimate. They say they are confirming the forecast. Theyve may reach the full year adjustment. They are confirming their 2015 forecast. Only just perhaps. Guy we have talked about what is happening with the employment story down under. Lets find out what it what is happening down under in asia. Shery ahn chinese stocks are rising. Behind thing index of 1. 3 . Hunting index is up 1. 3 . Thatical indicators show it may be in overbought territory. Tech shares are taking a hit. Is between gains and losses all morning. The nikkei investors were weighing on earnings reports from Companies Like mcdonalds and game developer, dna. They should be closed, that they started trading an hour later to reduce traffic for those kids in college. It is down 2 10 of a percent after the central bank. [no audio] guy as you can tell, we lost shery ahn. In the meantime, we need to talk about what is happening what comes to Central Banks. Anna investors will be looking out for more clues as to when the ecb will expand stimulus and president mario draghi appears in the parliament later. Speeding at the bank of england yesterday, he gave little away. He did say european markets need governments to operate freely. Went draghi the more we borders to be open wants orders to be open, the more we recognize the potential of integrated market to produce financial contagion, spillovers, and in some cases financial instability, the more we need to have global or regional institutions regulate those markets. For markets to be truly free, therefore they need governance. Guy later on we will go live to the european parliament. That will be from 8 30. Mario draghi will be there this morning. He will be taking questions on the ecb Monetary Policy. Anna we take a moment to reflect on the past. Mainly, may of 1994. Janet yellen was teaching at a university and mario draghi was a civil servant. The ecb and the euro did not exist. Europes benchmark rate was set by germany. That month, they set it at 3. 5 . This was postunification. What we go back to the 90s this december. Lets bring our guest, Lena Komileva. O, 1994. Guy far too young for that. Around. Was anna you are witnessing this divergence in transatlantic policy. And the fed doing something different, are we in for a repeat . Ena with the development of global finance, Central Banks have had to become more active. Sensitivity the Central Banks have to look at what is happening beyond the borders. Think the last three months of an interesting. September was all about market discounting. The fed delayed a rate hike. Ctober was about using easing. The bank of england signaling they will not be rushing. Inflation has picked up and Employment Conditions have been tight enough to prepare the market for expecting a beginning of normalization and the next 12 months. Versus the disinflation area story in asia and the eurozone. Guy take a step back. Yes, we will get divergence. Will probably hear the fed has raised rates and the ecb further delaying. What happens after that . Siemens it has further softening in a macro this morning. Is the fed going to go further . Will the ecb go further . Post this initial story, where do we go . Element is i one am in the glass halffull camp. We have had a lot of bad news. ,here is more bad news especially in the political story in europe. That is another story. I think when it comes to growth, while of course china is slowing down, we have to recognize there is this divergence between manufacturing and Service Within china. Growth model is rebalancing. It is rebalancing faster than authorities would want. When you look at the statistics, yes we had a week inflation number. We also did have doubledigit retail sales growth. The fact that china is moving on. The doubledigit pace of investment in gdp which we saw on the back of Government Investment programs. That. Needs more than in the short term, the stimulus will push up gdp. Whatm interested in will happen in it next five years. We will see slower growth, but better quality growth. You look at the Global Growth feature and you realize, there is an element of china in everyones gdp. Between the pmi and manufacturing, it shows that domestic demand is stronger than the overall suggestion. Anna if you do take that glass ss Glass Half Full of rich approach, maybe the fed is leading the way. The divergence we might see in december, despite that, we might see the other Central Banks try to catch up with the fed. Lena komileva if anything the fed rate hike will be helping. Ultimately we have had a disconnect between Global Growth. Medical is not helped by the distortions and financial markets. The negative yields in europe are not helping. With the fed moving ahead think what we will say is some reflation happening. See some return to sub dominant investment planning. Theother part of this is negative affects on a cpa are about to start. Guy website about inflation. Goldman sachs are signaling that this is the tenure break even. Basically the markets are underestimating were inflation will go. Do you agree . Lena komileva i think so. Unless you are prepared to forecast multiyear deflation. This point is historic, but it will probably not last. The major impact, which is the declining oil prices, is now economist st guy you get a base effect. Why is siemens, the biggest Industrial Company on the planet, saying we see a further softening in the Macro Economic environment. I am listening to Central Banks in the market, and very senior guys out of industry, they are all telling me to for things. Different things. Lena komileva the markets are discounting global liquidity. The doubledigit growth in earnings which we saw will not last. Anna we might not be in the right bits of the story. there is the macro story of global equity, bubble growth in china which will not last indefinitely. There is the micro story, siemens is in overcapacity. It is the fight for market share. It will continue as Global Demand dynamics shift. With china balancing and europe and the u. S. And the u. K. Trying to find that elusive Sustainable Growth level. Interesting line of questions for the management of siemens. Thank you very much. Guy what are we keeping an eye on. The india Prime Minister talks with David Cameron during a visit to london. We look forward to that later on. Regional cover asian issues, climate change, all of those things on the docket. Anna the organization of Petroleum Exporting countries, otherwise known as opec publishes its Monthly Oil Market report. Very topical given the conversation we were just having over the oil price in the collation there a story deflationary story. Central banks are talking. Janet yellen is talking. About the have Charles Evans speaking at 3 15. Anna up next, 1. 5 billion in sales in just 12 minutes. We will asked in this success is enough to stop the fight flight in alibaba shares. Anna welcome back, youre watching countdown. Siemens has raised their dividends and announced a 3 billion euro Share Buyback plan. Quartertimates there profits he estimates. Beat estimates. Profitse said their meet their annual earnings forecast. Is germanys largest power producer. Guy the Australian Dollar has jumped after and implement fell belows percent. The low 6 . Below 6 . That is almost four times the estimate that most economists figured. Australia already has record low interest loans right. Rates. Anna bloomberg set down with the companys chairman and he told us the goal is for half of alibabas sales to come outside of china. Jack every thing we do has a 10 year plan. We started in 2003. Lead judge how much we should do, what we should do to realize our dream and 10 years. Our plan is into years we will reach 50 of the revenues and money and sales from outside china. Guy lets get more from our tech editor, edwin. Are very focused on china. It was a big number they delivered. Can we call it success . Shares about moving much. Did not move very much. Edwin they actually dropped a little. Large the single day accounts for a small percentage of the annual value. In terms of impact on top or bottom line, it is minimal. The second thing, which is a broader concern is uncertainty around chinas economy. And how alibaba will perform in a. D. Celebrating economy decelerating economy. And we heard check mark jack ma talking about how they want to move away from just being a Chinese Business and be more international. And when you is he talked about the tenyear horizon. He is right, alibaba thinks longterm. Right now it is hard to see how they will get their. There. They get 9 10 of their ecommerce sales from within china. Alibaba has had some success in emerging countries like russia and brazil. A bargain shopping platform. In terms of going abroad, their strategy is more focused on introducing foreign brands and the largest retailers to chinese consumers. They are very reliant on the strength of the chinese economy. Guy and you for the update. Thank you for the update. Fascinating stuff. Is stilla komileva with us. About the chinese growth story and the impact of these deflationary forces. Deeper intoffer the ecb. We got that strong jobs report from the u. S. On friday. Everyone rethought their expectations around that policy. We saw expectations of a rate rise go up. What did it do about the expectations for the ecb . Lena komileva there are important factors that will feed into this. Comments have prepare the markets. They will be aware of having to come up with the announcement. Marketsseen the becoming more constructive. Moving to a territory where they can take a balanced view on what to gone out announced in december. The fed decision which is coming after the ecb meeting. Suggest thatrate the ecb will not have to do a breakup in a shortterm. Is just below that rate, we will move to close to 1 by the end of the. That means end of next year. That means real Interest Rates are falling. Perhaps they can go for a soft qe expansion in terms of extending the duration, without necessarily doing the basis cut. Guy fiscal policy is not doing enough at the ecb headquarters. Youe all awful lot have an awful lot of good things happening in europe. You have headwinds from what is happening with the ecb. There is a lot of good things happening. What is it going to take to get that recovery of the gear. Of a gear. It is really going to be what you just described . Or is it actually going to be the possibility of fiscal expansion and a restarting of that story . Lena komileva we should not discount the success that the ecb has had. Six consecutive quarters of improving improvement in the eurozone. I think what is important is the fact that we have easing credit conditions. We have improving credit demand. Cash usedded the new in the ecb quantitative easing. Everything is working. If that is working, it will be a useful thing. And that is necessary for the ecb to reach their inflationary goal, absolutely not. Anna does that make it hard to persuade the germans, and others whove expressed concern about quantitative easing that it is necessary. Lena komileva it is. We can not ignore that a year ago, the eurozone was heading deeply into deflation territory. The eurozone has been through its deepest recession. Stimulus whichnd comes from credit and stronger investments coming off of the ,ack which we are seeing particularly in a service pmi, that has momentum that has to be sustained. That is why Mario Draghis speech was important. He was saying there is a presentation in the market. Presentation in the market. Which means that our hands are tied. It will not be enough. Guy fiscal policy is needed. Structural reform and fiscal policy are the missing link. Lena komileva yes. Anna thank you. Next, 18,000 jobs, we will talk about that when we come back. Guy 6 30 in london. These are the stories you need to know. Anna investors will look out for more clues as to whether the ecb will extend stimulus when mario draghi appears in parliament. Speaking at the bank of england yesterday, mario draghi gave no away in the prospect of little quantitative easing. Guy the Australian Dollar jumped. Adding thousands of jobs in october, four times the estimates of most economist. The biggest corporate loan ever, 75 billion to back acquisition of sab miller. Industry watchers say it shows that banks are still willing to support top class bar west borrowers. Company istruction in a deal with 406 million. It seeks to expand in north america. We are joined by the company ceo , pietro salini. Good morning. You are buying in the United States. Is that an indication where you see the growth . Pietro salini yes, of course. This is one of the most important markets in the world for construction. We think we will expand in that market. That will be the issue for the next year. That the industry fits the portfolio. We will ajit against the risk we face every day. And a girl you operate in some 50 countries in 50you operate countries. You are interested in looking at assets from austria, for example. Pietro salini we are dealing in over 50 countries. What is thrilling is the fact that the u. S. Market is booming. There are in or miss quantity of work to be done. Enormous quantities of work to be done. Congress passed a bill of three and a 25 billion in the next five years on innovation. We should be there, being a Global Player in the industry. Guy you happen have in the past, operated and been successful in the gcc. How is the low oil prices impacting it . we were making a celebration for the breakthrough of one of the stations that we are building. They are continuing to expand their plan in terms of new entered its new construction. Either it will be a cooling down of some problems. In the meantime, the main project we will go ahead. The market is still very important. You have a wideranging business from dams to hydroelectric plants, to Nuclear Power stations. On the subject of dams, this has been tragic over the last few weeks. We saw that tragic accident in brazil. Do you think there will be more control around that industry . Or monitoring of the Structural Integrity . the damlini Construction Industry is always a sensible area for ecological reasons. Think through examination of ecological impact into the study ine bring that project also a way to produce the energy they can deliver. The water for the population. Future water is the number one problem for the future. Energy, a need for new clean energy. Guy can i ask you, how much are you paying your staff . How what kind of inflation rates geography are you saying geographically are you seeing . Is their Wage Inflation creeping in . Pietro salini it is normally covered by the contract we do. Ands part of the revision sign any contract. Inside any contract. Of course the differences in the countries, the way you pay wages, and the way they are linked to inflation, this is not a problem. It is my problem for the government or client. I am curious because we focused on what is happening with the Central Banks. Are the governments or clients in the u. S. Having to pay the guys definitely more significant more . Significantly more . Is that something you expect to see carrying on . That evenini i think that part of the industry should keep the pace with increased wealth that is everywhere. This is an important issue that everyone should take into account. All of the people that work obtain iter to would be an issue for the future. Anna thank you. The ceo joining us from italy. Unicredit plans to cut 18,000 jobs by 2018. They seek to improve returns and expands capital. Anna that news came as the bank lowered their profit target, and set a higher capital target. Speaking to bloomberg tv, the ceo, fred ricco could sony said he was not concerned. I am not worried at all. Even though we dont know yet the content. We have done a lot to improve. Liquiditys is excellent. The quality of the asset is very good. It is improving. I am very confident. He also spoke about the prospects of qe expansion, which he expects to happen next month. He says that while there might be some negative shortterm effects, they should be fully manageable. I was expecting a soundbite. It turns that we set it for him. Said it for him. Lena komileva is still with us. What do you think about the currencies . The people think that dollars strength story goes , others say it might for a little while. Lena komileva we are still in a world of disinflation. The market diversions has not materialized. It has been a bizarre here for currencies year for currencies. The fed is in emergency policy mode. Europe is struggling with risk. The problems that we have in terms of global disinflation have probably been contained. The other thing of course, it means that for any central bank that once you break away wa nts to break away, there is limited room to go higher without suffering. We are still in the global liquidity club. That tells me we are in a crisis. What we have had here is now close to 15 years of a global liquidity overhang. That has been depressing real Interest Rates across the board. That really means that we cannot really talk about the truth of the decoupling. The price of leveraging has been huge. Tell me where the real structural up reissues appreciation forces will come from. Asking, question i keep how much are you paying people . Are you starting to see people pull people will need more money . Some companies are saying they will. The bulk of them are not saying that. Lena komileva labor cost are two thirds of the cpi. Thathas happened so far is any recovery in the last six years, it has happened by absorbing more people in the labor market. The employment rates have dropped, instead of wages coming up. Unemploymentpeek rates in the u k, u. S. , and some , germany,he eurozone even though the industrial sector is in turmoil, that means we will probably get guy it still works. This is a secular weakness, it tells me we have come to a point where companies will have to pay more. Or you will have to get more productive. Saying we saw Hourly Earnings above trend. Maybe some higher wages on the horizon. Lets talk about siemens. The engineering giant announces a 3 billion euros Share Buyback plan. Fourth quarter profits beat estimates. Is there bad news . Hans nichols the bad news might be on the profit margin in the industrial unit. They say that will be 10 11 for the year. It was 11. 3 last year. It has come down a little bit. Ont of the focus will be what theyre doing with their share of buybacks. They have announced of three years of buybacks. This could be a play for moore and time. More time. The dividend was increased to 350. Highestay, 350 is the for a dividend for siemens for some time. Mostly these are positive numbers. We have to dig in a little bit to see how the market reacts. One thing not positive was the sales jumped up to 23. 7 billion. That is on the upside, but we did have industrial profit margin declining. Overall profit from industrial operations, up 8. 8 to 2. 5 billion euros. The estimate was for 2. 3 billion euros. We have a few questions they are and what is motivating this Share Buyback. Anna thank you very much. Up next, we will speaking to the ceo of siemens about this mornings result. All of that coming up next. Anna welcome back you are watching countdown. Guy Lena Komileva is still with us. Lets talk about a story that we are about to talk about, siemens and their narrative around germany. I will try to tie everything together. Germany seems to have a lot of reasons to spend more money right now. A have an economy that needs it. May have a migrant crisis that would help. I think merkel could do with a poll boost. Will we see fiscal expansion in europe . Is anomileva it important that a debate of Economic Policy shifted away from the ecb. Monetary policy has been all it could. What is clear is that the last five years, actually further, the last decade has seen a blockbuster of Global Economic governance. Through the euro crisis of 2010, 2012, and now to the emerging market crisis, which is giving negative feedback and investment drag. This is not working. Financial repression has not helped. Hastightening we have seen moved banking activities into the shadow banking. It is to strengthen capacity in the traditional banking sector. Fiscal policy has to pick it up. Idea, make fiscal policy responsible for economic structural growth policy. Make Monetary Policy responsible for both capital and real inflation. I think there is too much talk about cpi. Theres too little talk about the real problem is not global inflation, but a huge gap between high capital inflation and low labor inflation. That is creating policy feeding the political instability. Anna thank you very much for joining us. Lena komileva joining us. You said we would talk about german engineering. Guy we are. Siemens has announced a 3 billion euros Share Buyback plan. Joins us now from berlin. You promised this year would be a year of transition, have you delivered . let the market decide on whether this is true or not. You will see will be share price does and get the feedback. This is to the shareholders, not the much management. It was to management i would say , we delivered what we promised. We have been one of the few companies in the space who has been keeping their guidance all the way through a what i would say deteriorating economic environment. I think as a company we stand well. In the end the shareholders will decide. Anna can you tell us what you mean by further softening of the macro environment. How much and where . all eyes are on china, an important market to siemens. We have seen the industrial output of china declining to a level below 6 . What weabout the levels have seen at the peak of the financial crisis in 2009. That is a signal that methods will hit more south than anywhere else in the shortterm. That is something we need to deal with. We have a Good Standing and market share in china. The same of course is true if you look into the infrastructure business. Confidence in the United States has been slow. Direction us in the that we could expect slowdown and the industrial and infrastructure space in the United States. The economies that matter, if you look at europe there is a so to talk about qe speak, if you listen to the ecb comments as of yesterday. There is an environment that does not support growth is a tale and. Tailwind. As we look at opportunities and sweet spots where we can grow, we have done a lot in terms of refocusing our company to markets that we are good at. Two businesses we have a strong footprint in. That is why we are reasonably confident we can perform. , weou look at our guidance actually say that revenues will grow. The profits will grow faster. I think that is a strong forecast and guidance for a year which may be challenging in the Overall Economic and merriment. Environment. If you look to the geopolitical environment, it is not help either. Helpful either. Guy if you had five minutes of janet yellen, which you advise her to raise rates. I just heard a reasonably positive outlook about the u. S. You are not exactly singing its praises. i have enough work with my own company. Making advice to other smart people. Obviously if i had to, i would lets move on. This in and out debate if it is going to happen or not, and why, it is not exactly helpful for Business Leaders to make longterm decisions about how to move and develop their company. Her to make a clear statement, get it done, and move on. Anna can i asked you about the ask you about the Share Buyback . Did you feel that you had to do this for shareholders to persuade them to give you more time to turn the business around . All, if youfirst of resultsthe fiscal q4 and the outlook for 2016, that is a clear sign we believe that the turnaround is in full development. It is full speed. We have been improving our numbers. We have had a strong showing in bookings in q4. 15 up in august which i believe is second to none at least in the close competitive space. It has been looking good in terms of development. Course ifer hand of we look at consistency, it is an important matter. We just finished our Share Buyback program we announced two years ago. We have been buying back 4 billion worth of shares. We delivered what we said we would. Of of consistency and out our capital structure we believe we can continue to buy back at a bit of a slow the pace. It is what we want to give as a reassurance. Some general comments about shareholders versus other stakeholders, we have a company to run in a job to do. The company only exist if it has customers. Good people. And if it contributes to society. Direct our decisions and actions to shortterm orientation and a specific space. A wanted to provide consistent approach to the business and the markets. That is exactly what we have done. Guy can you give me a little bit of help with your pml. I am struggling. Basically you are saying you will increase your bottom line by more than 14 in 2016. Themiddle of the pml, profit margin from industrial operations will decline. Revenue growth of the top of the moderate will be moderate. I cannot make that work. What is going on, joe . Joe kaeser i would be happy to give you a little life into that. Fiscal 2016 in our guidance, it says we will increase our revenues in a moderate pace. It will grow 14 to a range between 590 and 620. If revenues do not help in terms of arjun expansion, there has to be some efficiency. That is exactly what our program. In 2014been initiating and 2015. Cost efficiency goes up, even though we expect moderate revenue growth. We also expect stronger bookings growth. For cost efficiency, innovation, that drives our eps improvement up to 40 to about 14 to about 20 . That is the range were working on. Believe me it can happen. Anna thank you very much. We really appreciate your time. Guy coming up next on , burberry, and the British Fashion brand will be checked out. Apparently it is nice in london. They live shot. A notion to pass. The fed and ecb appeared to go their separate ways. We are going to hear from mario draghi and janet yellen. Anna engineering a buyback. Limits raises its dividends and announces the plans to return 3 billion euros. 2015pects no growth in the margin. Unimpressed. Nts, welcome to count down. I am guy johnson. Anna i am anna edwards. Were getting breaking news. Did thater in spain number from this oil business. The net profits come in and line with estimates. Against 1. 4 profits 4 billion. Indeed the spanish refining margins. Guy sabmiller, somewhat of a takeover target right now. Out with numbers. 1. 02. Lets find out what is going on and in. Ryan chilcote has the details. Ryan we checking the numbers right now. Is the netric here producer revenue number. That is the metric for revenue. It came in at 12. 9 million. We dont have an estimate from analysts. Most of the banks are working on the deal and they are restricted. I can to you when youre go that number was 14 billion. That is a decline in that very important metric number. The other important one is the interim dividend coming in at 28. 20 five cents. That is one metric that we have an estimate for. It comes in and line with expectation. The interim dividend coming at 28. 25 for sabmiller. These numbers were preannounced on october 9, because that is when we got the tentative announcement that we would see a deal. That is when we got the tentative offer from ab inbev for sabmiller. They came out with some of these numbers then. Interesting to watch the share price on the back of this. The decline in revenue but also investors still chewing on yesterdays announcement and what it means for the share price Christie Miller which pounds. T about 40. 5 interesting to see what happens today. Anna ryan, thank you so much. Joined by nara. What are the details . The market they are referring to is china. Fromts 30 of its revenue chinese consumers. It is seeing a slowdown there as of those consumers move to japan and europe, profiting from those weaker currencies. For the headline number, it is first half adjusted pretax profits. That is coming as a beat. 50 Million Pounds the interim dividend also coming in at a beat at 2. 2 pence per share. Share. 0. 2 pence per burberry issued a profit warning. We saw a sales drop as well. The company leading for the ceo Christopher Bailey having his pay cut. Now burberry is going to be focusing on cutting costs. It is going to consolidate its products under one label. With thatgrappling slowing luxury demand in china. Ask you. Anna back to you. Guy merck finish its day up. A 17 billion acquisition. We are joined by the companys cfo, marcus kuhnert. Good morning to you. The future appears to be in a different direction for your company. Give made this acquisition. Yesterday to integrated into your guidance. The guidance looks very strong. Are we seeing a seat change at the company . Marcus good morning. Definitely our division in the future will gain importance behind this important and transformative or a step that we have ahead of us. We believe we will be able to finally close the acquisition on november 18. With that move, we are creating one of the leading companies in the Life Sciences industry. We will be able to cover every step in the value change of our customers. With the Product Portfolio of 300,000 products. Andg able to utilize orders worldclass ecommerce to sell and market our products. For theat is next business . Is the focus going to be on reducing your debt levels . Or doing more imminent . The firstfinitely one. After the closing of sigmaaldrich, we will be strongly leveraged. We will have 13 billion euro financial debt on the balance sheet. That points directly to the First Priority over the next two to three years which is swift and quick delivery deleveraging to regain issa flex ability going forward. Achieve aswe need to soon as possible a ratio below two again. Guy when does the new business get consolidated . November 18. We would start immediately thereafter with reintegration. Anna can you talk a little bit about how some of your portfolio is performing . A partnership with pfizer is getting quite of attention is getting quite a lot of attention is getting quite a lot of attention. Marcus the partnership is going well. Progressing according to plan. 2015 be entering in this year and up to 20 Clinical Development programs, there are five to six registration studies. Here we are, we are well on track. The other two businesses are performing very well. That is the reason why we have ebitda with q3 numbers. Guy can i ask you a slightly different question . You got a lot of drugs coming through. It got a lot of prospects in the future. When i start to talk to people in the Pharma Industry about how they think drug discoveries is going to be funded. They begin to talk about different models emerging. When you look 10 years forward, do you think we are going to be in a different paradigm . Imagine thered will be some changes going for it, because i think we need to find a way on the one hand to offer proper incentives for Companies Like merck and others who really you do really cost intensive researches. It is clean hand, and neat to have a Health System which can be financed and is based on a sustainable longterm Business Model here it i can imagine there will be some changes and i think we will be a part of the discussions going forward. We will be heard when the solution will be prompt. Anna away from the drug space market, you also have a business and performance materials. Liquid crystals. Can you tell us anything about any slowdown you are seeing in the Smartphone Market . It is something we talk about a lot. You have a big share of this market, providing some of the materials. What are you seeing their . Marcus this is an extreme ebusiness for us. We are commanding a market share of more than 60 . It is one of the backbones of our company. What we see is the longterm growth, trends in that business, still very intact. That means we believe in the next couple of years liquid crystals will be that dominating technology in this place. However, obviously what we are seeing is it that at the moment prices in china are coming down. China is one of the most important markets for us and worldwide. Remained on pretty high inventory levels which have built up during the course of this year. We expect a correction here over the next three to six months. Said, the longterm Growth Trends are intact and the liquid crystals technology or the opportunity for the liquid are far nothnology yet exhausted. Screens,mplications on im talking about completely applications. Anna marcus, thank you for joining us. Marcus kuhnert, the cfo of merck. Guy numbers out of rollsroyce. I were to start here with the headline saying 2015 profit is going to be at the lower end of previous guidance. Were talking about the secondbiggest maker in the world of jet engines, rollsroyce. Lower end of previous guidance of 2015 profits. It is going to start a Major Program to simplify its organizational model. They are saying in 2016 profits headwinds are going to increase to around 650 Million Pounds. The outlook reflecting sharply 2016. Demand in rollsroyce this a recently in been the profits have affected by the lower oil price. Industrythe wider benchmark of the stoxx 600. If i can so that back to you, the headline here, 2015 profit at the lower end. Anna it has been an amazing year and not in a good way. ,uy in some way a good way because of the orders for the 380. The blood talking about being over the peak on the sales cycle. And people talking about being over the peak of the sales cycle. Anna they are saying profits would be adversely impacted because of the oil prices. They seem to be under pressure to deliver. This under new management as well. They proceed they perceived a real structural shift. There has been a whole load of feedback off that program into the business as well. It has been a tough time. If the cycle starts to roll over , a chance to get even greater. Anna wherever be fixing on the macro a little bit later. We are going live to the european parliament. Mario draghi is going to be speaking. He will be taking questions on the ecb Monetary Policy. Speaking on lack of Monetary Policy in washington. Janet yellen makes a welcoming remarks. The fed policy conference. Charles evans speaks on the economy and policy that goes with it. He is doing that in chicago. Anna up next, 1. 5 billion in 12 minutes. Successk if single day is enough to slide in alibabas shares. Anna welcome back. Youre watching countdown. These are the stories you need to know. Engineeringrman giant has raised its dividends and announced a 3 billion euro buyback plan. It beats estimates. Expects nosays he growth in 2016. Germanys largest power producer has this warning. Missing analyst estimates. Guy the Australian Dollar jumped up. Inpanies adding 59,000 jobs october. That is almost four times the estimate. Lets check in on the asian market story. Shery ahn is standing by. Morning. At chinese stocks in Hong Kong Rose for the first time in five days. The hung sing index getting more than 2 the hang seng index gaining more than 2 . ,he rally in japanese markets they stalled. The nikkei finishing unchanged. Banks fell ahead of posting results. The sf 200 also finished unchanged after reporting employment and numbers. The best year of jobs growth since one to 10. The Australian Dollar spiked right after the data. It is currently rising more than a percent. Authorities in china again eight the yuan for consecutive days. The longest run since 2008. Back to you. Afterhery ahn, joining us joining us out of hong kong. Anna lets stick with the asia region. A record 14. 3 billion during a record day yesterday. We sat down with the companys chairman, jack ma. Haveld us his goal is to half his sales come from outside of china. Jack we have a 10 year plan. , we over just how much we should do to realize our dream in 10 years. In 10 years we will reach 50 of the revenues and money from outside china. Guy jack ma of course. As a day delivered their stunning sales figure. Jeopardy forot others. Another Chinese Company is set to default on its debt today. Analysts predict it will not be the last. In paults bring gruenwald who is at standard poors. Paul, great to have you on. That thehat example chinese meant business as an example of the ongoing exact ongoing concern might not be debts. Pay its what is your perception of these types of businesses in china . Paul i think there is some silver lining. We have been arguing that credit has not been allocated properly in china. If were going to go into a period where we have a few more defaults from firms that are not be able that are not able to , maybe thatlls signals Higher Quality growth. I would not take this as a negative. It will be a shock to the system in china because we do not see many of these things. These sorts of things have to happen. The going to be fixed though. The number is still too low. How is it reality of what we understand what is happening in the chinese economy . Versus the reality of what is happening in the chinese economy . The six is an old number to me. Considering the policy story we had. Paul there are two views. There is the official view that the economy is growing at 6. 9. I think too many people would bet the ranch on that one. View is neither of those bit we think the authorities take the growth rate seriously. Theyre going to try and do as much as possible to get there. We got to step up in government lending. Banksrance on the part of rolling over. They are trying to prop the growth rate of. Rate up. Growth so thelity downside scenario for china is hard lending in the near term. Authorities propping up the growth rate too high over the next fears, creating more stuff in the financial sector. That means the risk is pushed out a while. That is why we want slower, Higher Quality growth. Li ching came up as we can say the growth rate is 6. 5. We want to dethrone the growth rates. It the outcome of firms and households and not a soviet style target. It should be lower. Maybe six over the next five years. If we get more trade and productivity growth, maybe we get the highend. Manistee growth expectation. Anna since were asking the questions, do we ever get to a place where they dont set the target . Paul it would be sort of a normal government the central bank would have its target. They would just policy. They would adjust policy. People want to know what the growth target is. As we move more toward a market economy, hopefully we are going to dethrone the goat rate the growth rate. Guy what to be the take away for your business . Seeman about siemens. It is a story that is consistent across most company ceos. Is that the message for the u. S. , dont focus on china . Paul it depends. We are on the china story. An australian exporter importer how china is doing . I was on a panel with a gentleman in the pharmaceutical industry, and that industry is booming in china. If youre in the new china where we have the sector going to do well,esk going pretty that isn the space grown. Whether countries or companies can make the transition, that is going to be key. As a singles day product. Poco the mainlanders can buy. Paul the mainlanders can buy. Anna what about the chinese currency . I read a report that we are talking about a big evaluation in the yuan to come. The chinese authorities have guided us away from thinking that, have they . And gloom when authorities did the Exchange Rate back in august. They do not handle it very well. As they open up the capital theynt, loosen the reins, have got to let the currency is just as well. Currency and just as well. That was not communicated as well. My friends at the mf were surprised that well. Damion lee starting heading they immediately started heading hitting the top of their bend. We only moved 3 since that initial action in early august. Theyre good to go very slowly, cautiously. Guy back at home, life is getting tough politically. The revisions they were hoping to make, the economy is slowing down. Paul there is growing frustration. The bigs supposed to be asia growth story putting up a percent growth. There were concerns putting up 8 growth. There were concerns. The bigticket Structural Reforms are not happening. We need land reform in order to get the emphasize and the investment story going. We need to reduce red tape. I think if these things dont come to fruition, your could see the growth forecast come down in india. Anna good to have you on the program. Paul gruenwald. Talknext we are going to tech. How they are boosting growth from some old friends. That story next on countdown. European markets. We will take a break. We will see you in a moment. Guy it is 7 30 in london. Care of the stories you need to know. On thenvestors will be lookout former clues as to whether the ecb is about to expand the stimulus. When president mario draghi appears this morning. Speaking at the bank of englands open form yesterday, he gave little away on the prospects of more quantitative easing. Brewer is being bought by ab inbev. Operating numbers of 2. 92 billion around 5 . Anna bloomberg sources say a group of traders are planning to start a nude hedge fund. Scheduled to start training at the end of the month. That aroundplans 18,000 jobs by 2018. It seeks to return that news came as the bank lowered its profit target and set a capital target. Bloomberg teamwork, co frederico is more concerned about the stress test next year. Yetven know we dont know desk even though we dont know yet. [indiscernible] , the quality of the asset is very good. Confident [indiscernible] guy a lot of stocks are reporting numbers this morning. A negativecting story to emerge this morning. This is a fair value consolation here. Red because it is down about. 3 . A softer story. A negative start to european equities. Anna list of slightly sluggish start for your lets talk about texas u. K. Launches a new initiative today. Helpedn for numerous businesses to boost growth. My simon, apologies for referring to you as a veteran. Is inound his business your business back in. Think it happens really well. People have been operating as entrepreneurs, using their experience to help the next people coming through. You have to run an holy stage business. One thing they seem to understand in Silicon Valley is need to scale these is is is up quickly. Thats a these businesses up thesey scale businesses up quickly. In europe, it is getting better. A much moreiving longer runway of cash to help grow their this is. Grow their business. You have a larger market that you can grow quickly. You can use that to roll out geographically. In the u. K. , you have to do things a slightly different way. And adapt as you go along. Having the same investors around the table and having a good strong follow along. What is happened is but dont to 20 e cash to put 10 of their portfolio to work. That is why ive gotten involved. Were launching 60 billion pounds a year into the u. K. Only tech startup. We can follow along. Anna you think there are more and more funds coming along in the u. K. There are new funds focusing on the first see type of environment. Friends and families help in. That is gaining some traction now. What you will see is a lot more collaboration of coinvestment between those types of funds. That gap is closing. Athink there is still a get that early stage investment level. Guy if you could fill it in with money, what would the success rate coming out of the other end be like . Operate a typical operation, you would expect a large percent of those companies not to make it through. That is because you have already done your triage. I think on average if you look across the u. K. , there is about 3000 companies to get early stage investment. The i. S. Type level. When it comes to the next stage, there is only four to 500. Only 400 to 500. Youve got to back them. You got to support them, even the hell coming through this type of initiative. Given the help coming through this type of initiative. Anna what is the attitude around talent . Does this play into the integration debate in the u. K. . The availability of the talent with the right skill . Simon i think is important. If you think about the u. K. , then 70 of gdp will come from service type industries. They are based on people and talent. Besteed absolutely the possible talent you can. London in particular. The u. K. As a whole is a great magnet for attracting that talent. If we can have flexible structures or we can get that talent, it is good to help us. If we are inhibited, then they will go elsewhere and we lose that. Guy the problem these companies have. Come through, we have talked a little about lack of cash. Isnt that top of the list . Talent acquisition top of the list . s premise top of the list . Is premise top of the list . Is ink the key thing simon i think the key thing is it is about finding the right team in order to scale what they do. It is about building that team. As you get more scale, it is about growth. Have you manage those different functional areas . You ensure you get maximum return . It is about brand building and getting scale that way. You go through these different phases. You got to make sure youve got cash to do it. Anna what are the lessons you talking about with the founders of businesses . You think i wish i have known that when i first started out . About is howe talk is the Organization Going to scale . Where are you going to get the right people to do the right work from . The other challenge is if you see opportunities and you dont do as much as you do do, the execution and delivery. It is all about perspiration and not inspiration is true. You deliver what customers expect and your product. Youre constantly in touch with the customers as you grow. Anna simon, thank you for joining us. Guy siemens has raised its dividends here it that came dividends. They came as the Company Announced is fourthquarter profits. He had this take on his earnings. Let the market decide on whether this is true or not. We will get the feedback on whether the market believes are not. It is up to shareholders and not to management. We did exactly that. We delivered what we promised. We have been one of the very few companies who have who has been keeping their guidance all the way through what i would say a deteriorating economic environment. Company has done well but in the end the shareholders will decide. , what is your takeaway . It comes fromke is notial operations going to improve. The mark the Profit Margins were in the 10 to 11 range. Joe kaser could not point to any specifics in the macroeconomy which give him reason. He said their bookings will be up, not as much as their revenues. He took about the Macro Economic time it being troubling. Macro economic climate being troubling. He wants a quick decision. He doesnt like the uncertainty. He is fine with a rate increase as long as it provides some certainty. Their second biggest Share Buyback program. That may give them some breathing room. As we heard, he doesnt quite intend or pretend how the market is going to react. Guy he doesnt. He made it really clear that it was. Go hans he is interested to see how the market takes this reaction. This one is a smaller overall number. They are doing it over 36 months. He said in the interview, he said that this is a signal to their investors. They are serious about their strategy. They are confident in their strategy. They want to let them know theyre going to continue Share Buybacks. This one is going to start. Were looking at a five year period where they have Share Buybacks close to 7 billion euros. Anna we got two very different takes on the Optimism Level of the infrastructure story in the u. S. Next line u. S. We got ziemanns talking about weve had numbers out of other dividends today. Profit was 29 decrease on net profit. It was not as bad as the figures we had yesterday from e. On. E. On had a multimillion dollar loss. From rwe, we see how utilities are being squeezed. They are not able to get the same profit at a coal and gas. They have access to the grid. Price hitting as low. Also prices are down. All utilities are being squeezed. You look at what e. On reported yesterday. They were the third worst performing third worst performer on the dax. Guise . Guy hands, nice work. Ceo chris for bailey warns of a challenging environment. How has the china slowdown affected this luxury rant . We will luxury brand . We will break down the numbers. This experience was an example of what appropriate governments means. Having regulations that have sufficiently set to preserve the integrity of the market but not so taxing as to be suffocated. That is why i said free markets stipulate not just the right to take part but also the need to protect the freedom. Draghiat was mario speaking at the bank of englands open forum yesterday. We will be hearing from him again today. He is speaking at the european parliament. A 30 is when we think he will start. 8 30 is when we think you will start. Anna the austrian dollar fell below 6 with Companies Adding 59,000 jobs in october. Four times the estimate them were on the cards for economist. Australia ank of record low. Has raised its dividends and announced a buyback plan. The fourthquarter profits beat estimates. He expects no growth in 2016 Profit Margins. Anna Rollsroyce Holdings says profits will be on the lower end of the range forecast. It beat weaker demands for next year. This faces additional headwinds. Lets check out burglary. Nejra firsthalf profits beat estimates. This affords comes after burglary this of course comes after burglary issued warnings weaker spending by chinese consumers. We saw the share price dropped the most in three years. Better than expected earnings to date seem to come off the back of cost cuts. Christopher bailey is cutting bonuses. Consolidating products under one label. All of this to try and fight the slowing demand for luxury goods in china. The idea that all of the product being under one label will simplify things for shoppers. Make things more efficient and perhaps boost sales. Is in thechallenge china story. Nejra the external environment remains challenging and uncertain. It mentioned key markets. One of those for burberry is china. It is any weaker position than some of its peers in the luxury market, because it gets 30 of its revenue on chinese consumers. The problem is those consumers are starting to spend more in japan and europe. This is a weaker euro and weaker yen. Theyre trying to benefit from that. In europe, burglary gets about 40 of its sales burglary gets about 40 of its sales in the u. K. China remains a concern. Asia in general is a concern for the wider luxury market. Because of concerns in asia, they are expected to have its slowest growth since 2009. Guy lets go from burglary to beer lets go from burglary to beer. Ab inbev and investors will be encouraged by sabmiller results. It wasnt for the hit that sabmiller incurred on the back of the dollar, this would increase profits globally. Particularly, exciting for ab inbev, pretax profit in africa group and ask a group by 11 . One of the reasons why ab inbev is interested in acquiring sabmiller is africa. There is a promise that the afghan continent can be for in the for ab inbev. Latin america up. If theres anything to complain about is the profit margin coming in at 20 . That is coming in at 23 . Ab inbev is referred to as the rottweilers of costcutting. They will want that to be improved. There is nothing that we have learned from these results that changes either sabmillers view or ab inbev view about this deal. It confirms the business logic. They are try to work out how all of this is going to be paid for. We know the size of the corporate that rate. Ryan where does all of the money come from . 75 billion come from the banks. The biggest ever corporate loan. There 20 banks and are 20 banks involved. Many many other companies. Its based to the fact that there is plenty of liquidity out there. The banks are still leading. I think what is interesting if you look at ab inbevs earnings and combined entity, effectively for ab inbev right now, there that margin is 2. 5 times earnings. This will tick them up to 4. 5 times earnings. It is like they are buying a house in getting a bit more aggressive. Buy afferences when we house, we dont get to go to the bond market. 55 billion, they will use that to pay back the banks. They can to take the 12 billion that is to be miller is going to get from selling their stake in their joint venture in the u. S. Theres 20 of money coming in. That is how they are going to fund this deal. In a matter of weeks, you can youect enough banks to loan 75 billion to finance the deal. Ive got to learn something from them. [laughter] guy right. Thanks ryan. One of the stories we will be focusing on. What else is happening echo manus cranny in for jonathan ferro. Is what caught my eye manus what caught my eye is the live in the report from burberry. This is a ceo which is using words which is a bit of a an anathema. He is talking about productivity. He is talking about taking cost out of the business good looking at those in looking at bonuses. Yes, theyve got jack reed to deal with. Econd Quarter Sales decline 4 is the weakest since 2011. I know where i am going to buy burberry from. Im going to go to japan. That is where everybodys going. My pound will buy anymore. That has been one of the greatest challenges. Mario draghi, he is interfering with my schedule for today. He starts to speak. I know people want to listen to him a little bit more than me. A 30. We are going to take thats 8 30. Were going to take that speech from brussels. The divisions are clear on the ecb. Thebeen brock away decision isnt taken. Confirmed the debate is open. Be wary out there. Short euro traders who believe in goldman sachs, parity by the end of the year. Rollsroyce is going to be the stock of the day. Not for good reasons though. Warning about profitability. Back to you, anna, guy here it anna put your feet up guy. Anna put your feet up. Guy i know the london futures is showing you a positive sign. Going to open up slightly softer on european markets. I dont know why it is not read today. Anna willype of be had by manager 90 million headwinds. One stock on the move. Guy london looks lovely this morning. It might be sunny for a change. We will take a break. Bloomberg tv continues. Manus good morning and welcome to on the move. Im manus cranny, in for jonathan ferro. Before the start of the european trading day. Lets get straight to your morning brief. A rough ride ahead for rollsroyce. The engine maker lowers its outlook for 2015 and warns of 2016 headwinds. Engineering growth. A beak and buyback at siemens as it raises dividends. Mario draghi speaks in brussels as ecb boards suggested divisions over more stimulus at next months meeting. Thats what we are watching this morning. 8 30 will be mario draghi. European markets are just getting underway. Lets get across to nejra. We saw theerday biggest rebound in two weeks are we going to see that again today . We have mario draghi stealing thunder, speaking in brussels later on in the show. All eyes will be on this trade, the eurodollar, at the moment trading flat, but we know the power that this man has, and recently a survey by barclays showed this was the most the ecb was more important to it then the fed policy. We could see the two Central Banks diverging on Monetary Policy, a key thing to watch. Lets see hoe