Quarter since 2011. Others are repricing the risk. This trace on an earnings ratio of 15. 3 times their earnings. Lower than the United States. The dollar is strong. On their overall industrial production. China missed on purchasing management index. Retail sales are higher in a germany. We are waiting on cpi. To give him or be a drug he reprised from having to do more. To give a mario draghi reprise from having to do more. He needs something much more like qe heavy. Or it will continue according to our guests this morning. A flavor of what is going on. Rbs. You begin to understand and the data versus reality. Theyaid this morning intend to outperform the number they has set aside. But because of the irish property market. They have seen Property Value rise. The bank is able to release money. That is fantastic. Theyer, what i was say, are going to get into why prices are being manipulated. The agency where it love the bad stocks was coming from, are they real price rises . I will leave that for you. Third Quarter Sales is being cut. They save sales are up i 6 . A to would be 10 . It was warm in august. As they said it would be 10 . If the warm weather continues, they made me to we approach their private target they gave. We will wait and see how it plays out. And tord stock and next the rolodex. There is one more stock i think tells a very interesting story. Over 4 . Rio tinto. London up 0. 3 . Why . Look at iron ore. One of the worst quarters for iron ore. And 70 for iron ore. The worst quarter on record. Back to 100. The ceo said, yes. Toggle the oversupply, an oversupply of almost 300 . A tricky problem. It is called supply and demand. Dollars en. 33 is where we are. Dollar yen. It has the best quarter since 2008. Bank of america has moved of their view on yen. 115 by the Third Quarter of next year. Nothing to do with a japan yet but a weakness of dollar strength. That is the view from a then. Bank of america move on their dollar. Inflation data out, as you know. Bank of america, caught exert target. Caught their target. The story asth is all part as opposed to euro weakness. Some perspective and bring and lucy mcdonald, chief Investment Officer and europe. Welcome to the show. Nice a gains across the board in equities. Man is talking about a week en weaanus talking about eight k yen. The one really bright spot, you can get a little bit upside from the weaker euro. This year, europe has been the weakest and earnings and will see disappointment in the consumer area, cars. Some of that is because of the openness of the markets and the companies here. A weakness from asia, emerging markets. Helped by the weaker euro. Ufc a stabilization of those negative earnings revisions. That is what we would like to see. And possibly getting to recover if we get a little bit more growth in europe. How crucial is it to get their Earnings Growth . Manus cranny is talking about the japanese yen. Of thee the impact weaker currency. When is the crucial mark, the Crucial Point pressure mark absolutely right. It is not going to give you an on going. However, it can give a boost. And a bit of growth coming into the real economy and that will help the overall numbers. The governments need to do more and corporate lease to generate serious money and everybody looking to the ecb to do more. When a mario draghi cons out, expand when a mario draghi comes out, will expand, how will he do this . We know what the constraints are on him and he is doing as much as he can. He is really doing everything apart from buying government in the primary market. By theis constrained overall fiscal situation. We know that. However, well so have the a qr to get it through and we are waiting to see how things work and for capitalization of banks and taking some of the bad loans of the sector will help. Underlying, it solidifies there are some very flickers of life in europe. They are flickers. It does look like a reason for more optimism. Will be watching that. A big question. Lucy mcdonald. A look at one stock on the move. Equities opened higher and a london. Rbs opened a much higher. Equities opened higher in london. Goodis good news for rbs a news for the stock as a wall. We will talk europe after the break. Europe wants to make apple pay. Andhat is good news for rba good news for the stock as well. Stay with us. On the move is back in 2. A welcome back. We are looking at asian stocks and the hang seng. Protests student led flared up again. For the latest on the ground, let us bring in rockland che rosalind chen. We can see thousands of people lining the highway in hong kong. It is one of the key highways into the financial district. Standing,ll sitting, millon around. They are taking over the entire highway. And preventing many businesses from opening today. Some banks and jewelers. People are wearing black with yellow ribbons to show solidarity to because. The numbers are growing and growing as the day goes on. People are generally [indiscernible] coming in from individual businesses and some people who paid out of their own profits. The current chief executive of hong kong [indiscernible] impact of occupy will not to be a few days and the cost on hong kongs reputation could be huge. Tomorrow is a national holiday. China marker the establishment of the peoples republic of china. Theesters said they want expectations for the crowd to grow. The chief of hong kong want this to him and a your best wants this to end a your friends leaking to program and you have been speaking to prominent members and they have said what . The chairman of a next media, it is a on several publications essay on a several publications, they own several publications. Said they are discussing with people and a are trying to work with them. This. S not been doing [indiscernible] assess planst to for the leadership out here in 2017. That is what some of the people are saying. They said that will be here as long as it takes to get their voices out. [indiscernible] universal suffrage. He should be working for hong kong people instead. He is against hong kong people. He has to be get rid of. China, it poses a huge challenge. China has said Hong Kong Affairs are internal affairs. A gathering in hong kong. [indiscernible] preserve people should what to they have here. Rosalind, thank you for joining us. Rosalind chin, thank you. Still with us is losing mcdonald for more perspective is lucille mcdonald. You see the story. Is it just a retail, property, travel kind of story in your mind . The economic impact, yes. We see the duration and intensity of the protests. Of course, all retail sales in hong kong are watches and jewelry. Fast scenario has already been we go because of corruption and the crackdown and a fall in mainland about 20 this year. That is already week. If you have an extended period of early closures are not open at all, its willis says even more. Visitors will be put off, too. The property issue is more than the rule of law. It is more a substantial. Looking at the practical of what is on the ground. On,did the longer it goes the less impact it will have. It could be political noise but a distraction for what is happening in mainland china. How concerned are you about that . We think is political and if it an important issue. And could be slightly more. China is the on in slow down. Slowdown and a week property market. The bad debts rising. That has been a concern which is been in the background and out of the foreground and probably come back again. Really looks toward inflation. The consensus seems to be an appreciate for china to handle this. There is no historical prece dence for a historical boom this big to play out. It has been a big concern for the credit markets and i can probably, back. It is messy. Some of the loans are taken off of the books. Managed and that is fine. They are doing it anyway that is quite tricky. I think probably the focus will come back on again. Of moving from china and we will talk tech. Thatu mission will unveil apple may have cut an illegal deal. Hans nichols joins us for more. Talk to me about what is at stake here for apple. Well, potentially back taxes. Is out for has found they they maywith europe, have to pay millions, potentially billions in our rears and back taxes to the irish finance ministry. Aid under eu treaties. That is to say you cannot cut a deal to give a company and unfair advantage. Ireland finance Ministry Said they have not done this but when you look at some of the deals, the outcomes of what ireland and apples test relation is, it is clear apple is not paying that many taxes. In some cases, zero. Look at the subsidiary. According to a Senate Report 30 may 2013, they had billion in net income and the tax bill on that was zero dollars. A deal like that, if it was a deal, we do not know is apple exploded a potential weakness and ireland tax law or whether they cut a separate deal and that is at the core of what to the inquiry will get to. At his arrangements like that have led folks and a conservative party to Start Talking about Corporate Tax invaders. Listen to what he said yesterday. Companies goology through extraordinary lengths to pay little or no tax here. If you abuse our tax system, you abuse the trust of the british people will. My message to these copies are clear we will put a stop to it. What we are expecting from the in you today will be read acted but a redacted letter i just apple and against apple and ireland. They said nothing on toward had happened. Expecting more details on potential cases against starbucks in the netherlands. Jon . Some of the headlines broke in the last 20 minutes. Apples irish ruling according to the eu. They said they can signal recovery of irish aid to apple. I am guessing for you, a lot of this was well leaked. Not a big surprise to you . Theactual number number that is come out of the eu, we will have a closer look. Numbers how come out and will be looking to see hot out will reacts later in the day. This is the preliminary process. The beginning. Dylan with the eu can take a long time. Google is trying to resolve their 2010 antitrust issues with the eu and they are not there. This is pressure on apple and we will be watching the share prices. For the it puts pressure on them but they have a good news out of china today . And they will build to sell their iphone 6. A huge a deal for them and that it to the Chinese Market for big Holiday Shopping weekends coming up. They made a minor physical security. A great work. Thank you very much. Lets bring in a losing mcdonald. You,uestion i need to ask theyre kobe some of fines, what does it mean for the bottom line . For apple specifically . I thinke specifically, that does not to the issue. They issue is of tax policy generally. Moving to be a strategic issue and has connotations to it. If a company could damage his ,eputation by is tax policy its probably needs to think again. Webster not only in tech sector haveealth care and we seen and not only in the tech sector but health care. Do you want to the company to minimize the tax deal . And giving a better overall reputation to be stakeholders. Google is a company you like and wrapped up the same issue that apple is a right now. Why do you like google . A because of the growth of Online Advertising and is growing doubledigit in a world where we are talking about europe, struggling to find anything that is growing and single digits. It has great, great potential. It has high margins. It can do what it wants to do with the margins. What it wants to do is develop. It has been an extraordinary market. Microsoft was a similar story and the 1990s. It have what would be called a monopoly. And the market soft the problem out. Do see google head the same way . It is there. A natural monopoly in research. What microsoft made for self was more constructive i feel. Search, very different for others to enter. Microsoft was doing but its very difficult. However, it is what you do. Search in itself is not necessarily going to be a strong business. You need Online Advertising. They are competing. Advertising not necessarily. Lucy mcdonald and europe. Thank you for joining us. A quick check on the markets. Equities opened a higher. Attackay higher on the 400. London, a bit slower. As we head into the break, crossover to European Business correspondent. Live in paris. A big interview coming up for us. I do. As a tough life for retailers, isnt it . Having to talk about the weather. Feeling the pressure. Of austeritiesll of how do they navigated things that they can face . Things like online. We have a wealth of information from michael gold. We are getting his experience on how to navigate in retail. Back to you. Lufthansa strikes again. Pilots walked off. 17 . Tock is down more than stay with us. Welcome back to on the move. Im Jonathan Ferro at bloombergs European Headquarters in the city of london. Were 30 minutes into your trading day. This is the picture of the markets now. Ftse is now a 10th lower. The dax retrieved only soft earlier combains in the market. Big data drop when we get numbers. What is the biggest gain in the stoxx 600 . The stateowned u. K. Learned. Previous formed a target by about a billion pounds. Biggest gain for r. B. S. Biggest fall in next shares in two years. It is blaming the warm weather. Mountain the cold weather. Not leaves. It may need to reduce its fullyear profit forecast if unseasonably warm weather persists and continues to deter shoppers from updating their autumn wardrobe. Have you started updating your autumn wardrobe . I havent since 1976. Im a little bit behind. Ian torrance is leaving. They are searching for a replacement. Market conditions remain challenging. Revenue for the half year remain 10 lower. When is the last time you changed your winter wardrobe . Every year. Every year. I never buy the blame the weather strategy. I know it matters but mark barton style weighing in on stock this morning. Here are the top headlines at loomberg this morning. Pro democracy protests block roads in the central part of the city. Hang seng raised its gains for 2014. Protesters are demanding the resignation of hong kongs chief executive. Mainland china, hsbc p. M. I. For september was at 50. 2 lower than the preliminary figure of 50. 5. Industrial profits, factory output show a deteriorating outlook which has led some economists to cut this years g. D. P. Growth. Spain issued a suspension of catalonias plans to hold a vote on independence. They called for a vote on november 9. As a nonbinding consultation on independence for the region but the Prime Minister rajoy called the vote unconstitutional. That story has legs. Some of the biggest names in retail are gathering in paris today. E spoke exclusively with ian cheshire who sees Major Concerns in europe. Particularly in france. Take a listen. The danger at the moment is that markets are flat lining. Actually that creates a double effect. Cant e the government address the deficit. They makes customers more worried and they think will there be more cuts . For the moment, french consumers say i have money in the bank but i dont want to spend it because i dont know what next year is going to be like. European Business CorrespondentCaroline Hyde is standing by. Over to you. Probably one of the most experienced out of the entire industry whenette comes to Running Department stores. From blooming dales. Blooming dales. Michael gould. Were talking at the moment about what you have to navigate. Austerity. The move to online, to digital. What would you say is the main challenge for retailers . I always believed the greatest challenge was finding great people. I think the opportunities in the retail world and particularly in the United States and particularly Department Stores is unbelievable. It is unlimited. I n i left bloomingdales if was starting today as a trainee, opportunities have never been bigger. The biggest challenge is not the online business. It is not the customer. It is again, finding, creating, building and educated great talent. If you have great talent in your stores able to serve those how do the quickest, you set your retailer apart . Everyone is talking about digital, mobile. What did you install . The first thing you i install is culture. The culture of trying to be the best. Culture that the customer comes first. Associates come first. Those two things come first hand in hand. The opportunity to grow the business is unlimited. People keep talking about all of the onshrine going to destroy brick and mortar. I dont believe that. Brick and mortar has been there since the time of the greeks. People went to the village. People went to the market. People want to come to a store for the relationship. Otherwise may as well stay home and do everything on the machine. Stay home vapid dinner and never go out. Stay home and wait one week and whatever movie came out, it is on r online or on netflix. The fact of the matter is online is about 6 of the retail business. Neen the wildest forecast, four years, five years, maybe it is 10 of the business. Where is the other 94 , 90 of the business . It is in the stores. The stores that will be successful will create that relationship, that environment, that has excitement to it and energy to it and creates relationships for the customer. You helped foster relationships by empowering them. I understand you made them all read a certain book. What is it . Required to read any book. Mandelas way. The writer wrote the long walk to freedom with mandela. He wrote this book about 15 lessons he learned from mandela. I read it, it was an epiphany. We gave it out to the management committee, all Vice President s around the country. Store managers. About 110 people. Then it took a life of its own. People bought the book for their own people. Then we bought it for every executive in the company. I have given it to c. E. O. S of fortune 500 companies and heads of universities and for summer internships. But what it says and what some psychologists tell me when i ask why of this whole organization, other people become so enamored by this book. The comment was people have a yearning for a physical, for an mrble, for a spiritual and intellectual connection and a connection with other things and other people. It is a book about life. There is no right or wrong in the bong. Book. We never sent out a note. There was never required reading. The salespeople would say to me my managers read the book. Can i have a copy . Bloomingdales has already it was 0 copies but never mandatory. R how do you think blooming dales navigated the economic downturn. If you could go back, would you done something differently . You would always do something differently but wrnk when we look at what our numbers were during this economic downturn, i think we did better than everyone else. Suffered ttle we the least. We suffered the least because the one thing we did not change, cut any budget from was our leadership program, our education programs, our training program. That is the life blood of any company. We knew we were going to come out of that downturn. We knew business would start coming back in 2010. It did. We came back stronger because our people were stronger. Do you feel that you are growth and Consumer Sentiment . I think growth has been a little throvers last year or two and this year was a softer year. We have all seen the numbers. That is a long game. One of the chapters mandel talks about it. It is a long game. Remember, this is a man that spent 27 years in jail and didnt come out with any anger. It is a long game. It is a long game. I think you to have an end purpose. One of the other important points in that book are what are the core values . You to do things on a individual basis, on a daily basis. I think Department Stores have a great future. Particularly upstale Department Stores have a great future. Michael gould, the chairman and chief executive of bloomingdales. It seems to be all about the people. London, jon. U in thank you, caroline. Dont miss our coverage from paris this morning. Caroline will speak to the c. E. O. Of Dominos Pizza on the pulse. Pilot protests will grab much of the airlines long core flights as they walk out over benefits. This has been going on for weeks. Lets get to the core of the issue. What do they want . Luff transa s is retirement benefits. The issue in the dispute is if you retire at 55, lufftansa will pay up to 66 of your salary until government pensions kick in. Most pilots dont retire until 58. They want to lift that average retirement age to 61. It is about nair owing the period of time that they have to pay out. This is about reducing costs. They are trying to develop ways to trim the staff costs. I, i would love to retire at a. , i would love to retire at 58, b. , with pension burdens, what is the future for these guys . It is a tough situation. It can be done. Youre seeing the c. E. O. Of i. A. G. , the Parent Company of british air ways in iberia pushed through really tough packages at iberia and now the costs are among the lowest of the legacy carriers so it can be done but it needs to be done in a, you know they need to be focusing on this and doing it in relatively swift fashion. They have been having pushing into france, expanding and winning new customers. Then you have emirates who are happy to pick up passengers. About ansa, talk to me what today means for the business traveler. If youre flying long haul from frankfurt, they are going to have 30 flights they have managed to fly. Check the website. Make sure your flight is going to be going somewhere. These are the main ones. The jumbos. Thank you very much. Aviation reporter here at bloomberg news. As we heads to break lets quickly check in on equities. We had a higher session at the ohm. Stay lower on the ftse. The character and dax are in positive territory. The cac and the dax are in positive territory. The Regional Party leaders say they are city still planning to be ready on november 9. Were live in ma with the details after the break. Stay with us. Welcome back. Im Jonathan Ferro live from london. This is on the move. It is time to talk about spain. Rajoy said the catalonia separation employ violates the constitution. Catalonia leaders plan to be ready for a november 9 vote. Lets find out whats going on here live from madrid. Were joined by esteban. This is probably good news for people that hold spanish bonds. Tell me what can we expect after the courts decision last night from both sides . Hi. Well, basically the first step whether the Central Government considers the catalonian government is respecting the that is a big issue because the catalonian president said the court can block the vote but not the whole they are advertising in the Regional Division and there are other activities going on there. The deputy Prime Minister talks about it a. M. At some point. Later today Prime Minister rajoy will speak in the senate. How does this develop as we go forward . Does this debate get refocused . Does it move away from outright independence . How does this play out . Front olitical the tely is, you know, catalonian president is challenging the interpretation of the Central Government is it is unlikely that rajoy will put any proposal on the table. The most important thing is whats happening in you may remember the demonstrations earlier this month in barcelona. Pro independence leaders have mobilized the society in the last month. They need some kind of easy to understand explanation. Move from full independence to that is not clear yet. It is it is not very redictable what it could be. They will have to move something around the elections or some kind of compromise. Thank you very much for joining us this morning, esteban. Esteban duarte in madrid. The 10year, 2. 2 . The pulse is coming up at the top of the hour. Guy johnson joins us from the news room with a look ahead. Whats at the top . Lets talk about hong kong. That is still the big story dominating the global agenda. What is going to happen there . What course will china plot . Well talk about implications of the Financial Markets as well. Zeman. Peak with adam well also talk about direct trading between the won and the euro today. That starts a big move in terms of it continues a big move in terms of the r. N. B. Well talk about that. Well talk about the apple tax case. That is something we need to focus on. Really made u. S. Tech companies the big focus and also because were going to be builds up towards lunchtime during the pulse, well be speaking with the c. E. O. Of Dominos Pizza u. K. We have all the angles covered. Got the pulse covered. Lets bring you up to date with some customers on the nufe morning. King fisher may be in the market for more acquisitions. Weak markets in europe provide doesnt opportunity for a deal. Were going to complete, we hope the acquisition last year in france. That should happen finally in january, march time when get all the work done. That was one of the factors in timing. There is always opportunities i it is clearly rkets are makes its big screen debut with a sequel to crouching tiger, hidden dragon. And lufthansa pilots resume strikes today as they push to keep retirement benefits. Only 26 of the scheduled flights from frankfurt will fly. They have shaved about 100 Million Euros off profit so far this year. German unemployment crosses in a few minutes. Well bring you that as it crosses the terminal. Well have that and more on move move. Were back in two. Welcome back. Lets get you straight to some breaking german unemployment news this morning. It comes in at 6. 7 . That is in line with expectations. The eurozone is 11. 5 . So it is way below that but this is also a record low for german unemployment since unionification of germany. You look at spain, 24 . Greece, 27 . Really 6. 7 is nothing. When you look at it, it is up by 12,000 for september. The estimate was for it to drop by 2,000 so that is somewhat of a disappointment. Lets check out the reaction in the euro. Euro dollar was trading pretty flat into this number at 1. 2686. Quickly check out german bundes. Spain lower down by two basis points. Socgen. You want to talk about that, follow me on twitter. Im at ferro tv. For any more data to drop through the day, 10 00 u. K. Time. Eurozone unemployment. That is it from me. The pulse is up next. Stay with us on bloomberg. Were back in two. Standing their ground. Protesters say they are not going anywhere until hong kongs leader steps down. Were live in the city with the latest. R. B. S. Rallies. The bank says losses from bad loans will be significantly lower than expected. And europe looks to take a bite out of apple. The e. U. Says it can seek the recoveries of the tech giants. That dates back to 2003