Last press conference. Even as we get the weak eurozone data and Interest Rates remain in negative territory. Nokia plunges as the tell cocuts the 2019 outlook and warns of tough competition daimler shares hit top gear thanks to strong mefrz sales the carmaker begins to double down on cost cuts. Weve got such an exciting day coming up. A lot of earnings to go to on the stoxx 600. We just got the aggregate data the pmi number has come in at 50. 2 slightly below the expectations but higher than we were back in september at 50. 1 services pmi, we have at 51. 8, just a faction below but above where we were in september the aggregate number coming in at weaker than we had. If you look at the numbers that had already come out, france pmi came in better than expected, germany weaker than expected i want to bring in a senior european economist who will be with us the next 15 minutes or so before we talk about mr. Draghi, i want to pick up on the European Data we have coming out this morning still very much painting the case for a weak european back drop yes on the face, it is really unchanged from last month. Im not sure all the companies have had time to respond before they had the news on brexit. Maybe when they get to the final estimates. We might get improvements within the next ten days. Thats one thing no changes in germany. The Manufacturing Sector is in deep recession the outcome is better than expected maybe that is an encouraging sign going into the ecb meeting as well. Certainly take your point on france and the better than expected numbers there within the german print, i want to ask you about the Employment Data showing employment has fallen now for in the last six years. Also a slowing in the Services Sector how worrying is it that the labor market is starting to see some cracks in germany it is a big worry the spill overs have started the longer you stay in the situation in the Manufacturing Sector and Business Cycle perhaps we get to the point where bad news is good news. We know the pain threshold has not been much to go into the easing which is where the market is expected to go today. There is a strong decline and deployment and index we might need to see an increase of headline for official number of employment for the government really go one step forward frederick, thank you for weighing in. Stay with us now i want to bring you an update from the Norwegian Central Bank they have kept their rate unchanged at 1. 5 . That was in line with their expectations they said it remains the policy rate remains most likely, new indications the policy out look is little changed since the september report that is bang in line with those expectations norway relative to investment banks elsewhere have remained much more hawkish. Thats it for the Norwegian Central Bank, lets get to y joumanna the European Central bank, perhaps the market will not be so focused on the policy itself. It is draghis very last meeting. Expect him to field some questions. There has been a lot of contentious language the ftse 100 trading up. Political development very much in focus there and whether they decide to grant the uk an extension and how long that will be will set the tone for markets. The dax is up. Cac is up. 3 and ftse in italy up. 3 80 European Companies have reported we are seeing a very diverse result let me take you to one of them in auto space. Daimler up 4. 5 after posting better than expected Third Quarter results. This is also coming in higher thanks to strong sales of their passenger cars the Company Expects full year pretax earnings to be lower. Partly due to questions around diesel emissions so up 4. 5 auto is one of the best performance sectors in europe. You dont see that often nokia cut after admitting the Company Needs to save cash and save investments ahead of the 5g roll out they also cut the profit forecast for 2019 and 2020 stating large competition. So 22 bringing that average down very disappointing day for the community. Thank you very much as you mentioned, today is a huge day for the ecb legacy will be marked by whatever it takes. 2. 6 Million Euros we have reached the end of draghi as the Outgoing Central Bank president proceeds the last meeting. Run us over some highlights of his tenure if you look at his eight years, the highlight was clearly whatever it takes. He was the man who saved the euro with that one sentence, which he uttered surprisingly. It wasnt scripted yesterday, i spoke to the back then member of the governing council. He said he himself was surprised even though they had spoken about the need to do something bolder i guess mario draghi is a very courageous man, right. Interesting one man who was once a candidate to replace him but fell to the way side when Christine Lagarde got the job. You and i have been doing this for the last eight years talking about the waxes and waning of the prospect of the european economies and what needs to happen while mario draghi is giving cover when you listen back to the kind of questions we were asking, nothing has really substantially changed. We have a bit of tape here this takes us way back to 2013 or thereabouts lets have a listen and then well pick it up i would like to ask you a question whether you have been tackling the question whether germany should spend more money, use, the fiscal space. The countries that have fiscal space should use it germany does have fiscal space however, we have to be nuanced about this because germany is almost close to full employment. If there is fiscal space, it should be carefully targeted reporter i wonder if you could share the experience of the imf meeting this year and whether in the conversations you had both about europe, profitability, investment and growth, you are going to come away more or less optimistic or posse pessimistic about 2017 we see the emerging markets improving. The area that had been deteriorating in the last year and a half there is significant geopolitical risks ahead when we agree with the imf, we report on the down side. That answer could be exactly the same now there are serious geopolitical risks ahead. Risks that remain to the down side we were just discussing. As draghi has done whatever he can do, we dont have a banking union. We dont have a Deposit Protection scheme. So many things set in place to provide for the euro and the back zone for the financial plumbing that just havent been achieved in his eight years here you are right probably the pressure wasnt strong or big enough that is something the bundes bank was arguing for years now you take away the pressure for politicians to act we are in the same place as you are saying you are going to the press conference later, are you expecting to hear anything regarding Monetary Policy today given that we have that big package delivered in september i dont think so. I think hell show us again the need for that policy action which they did in september. That was very controversial. We will get arguments from that package. That is worth baring in mind, actually, the tiering aspect and purchasing of the bonds doesnt fall in place until the end of the month. Even as that Interest Rate move already announced and happened, we dont get to the other part of the package until the end of the month. That is a Holding Pattern looking forward to looking back to you guys in a couple of hours. Lets go back to the leader. Draghis predecessor used to say that is one needle in the compass. If you look back at draghis eight years, since 2013, they havent met the target once. How do you think history will judge draghi on that particular part of the mandate. That is his greatest paradox. He has been the most active, powerful Central Bank Leader yet he leaves with the worst track record with regard to inflation. You see under measures of inflation. Creeping higher towards 1. 5 or close to this level. It is not that bad, the other counter argument to this is obvious to me. That is a question draghi asked three and a half years ago what would have happened if the ecb had not done everything that they did is qe, negative rates and so on . The situation without all of this would have been much, much worse. It is still a positive challenging situation but i suspect he will leave with a message of positive confidence that is his style. One other aspect of his time is introducing all of these tools. Tools historically never used in the past people never thought they would use the ecb, negative rates, all of these are new measures. All of that can be attributed back to draghi himself and how much do you think is back to the bank in general. Some is say they even lagged a little bit implementing quantitative easing the first time around. That is an interesting point. Hes been breaking taboo after taboo. He is not alone. He was relying on his chief economist. Those four trpragmatic and very skilled central bankers did what you described. That is turning the bundesbank into the fed now the policy has become the norm we can discuss there are many diverging views of the negative rates for the future but those tools are in place they will be part of the tool kits in the future that is a great achievement. Bringing it back, there has been a lot of coverage about dividing council to what extent did they limit the abilities moving forward that is related to what we just said. One year ago, dovish of the board was much stronger than we last stood, there is this transition of a few members joining. Even the french governor turning less dovish. Also draghis style. That is very different from his style. When he is convinced he has a strong feeling about something. I think he was convinced that something needed to be done. There was a political price for this he accepted it there we are if they had not acted in september, i think we would be in a much more fragile situation. How much more do you think madam lagarde may be able to convince surplus countries to do more do you think she has more of a shot to propel than mario draghi has had . She might be, i dont think that her reputation is stronger than draghis in berlin. She will also get the help of the new joiner that just got nominated. If isabelle will be a great light to convince them that it is not ecbs fault that is the key argument he sited, you dont like negative rates, fine we would like to normalize policy as well to do this, you need to do your homework for many, many years. Fiscal space being proactive. Do all this and well be in a position to normalize the policy a big part will be helping to change the narrative why do you think so many members of the gc are feeling so emboldened now to criticize the latest package that is coming to the end of draghis term, or is this a sign of things to come . The possible candidates to succeed draghi part of the battle there in the way they expressed their disagreement, its fine to disagree in germany, those are debatable. Then youe instability relies on the cohesion of the common view of the only objective, the only needle reaching our inflation target thank you for speaking to us on this historic day the senior european economist. Also make sure you join us at 13 30 cet at ecb decision time all guesses on the final color of the tie what do you think i think blue. It has to be blue. Coming up here, hermes reports a bounce in sales following a Strong Demand from china. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to street signs. Lets get in to some of the key corporates rbs as the bank booked a charge to a miss selling protection insurance. Reporting one ratio which dropped to 15. 7 rbs banking unit had a tough quarter posting a loss of 193 Million Pounds luxury Strong Demand in china has driven numbers for hermes, cautioned that pace had slowed hermes confirmed the medium goal breaking down the positive results for hermes, even in hong kong not only they beat expectations revenues have accelerated. A great performance there. Despite protests in hong kong, which is a key place for luxury sales. Even there, they said their sales slowed down there. Contracted but for hermes it didnt, it slowed slightly sales improved that cut duties and sales tax is one thing they are saying is the top luxury they saw the slow down but the top category should be sheltered. Some of the other names are up well talk about that. Thank you for bringing us the latest because of the strongest earnings day, driving autos to the top of the pack. Discussing the car industry on both sides of the atlantic that comes up next prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Int easy. 12 hours . 20 dogs . Wheres your belly rubs . After a day of chasing dogs you shouldnt have to chase down payments. vo send invoices and accept payments to get paid twice as fast. danny its time to get yours vo quickbooks. Backing you. Welcome back to street signs. Im Joumanna Bercetche and im julianna tatelbaum. These are your headlines the dax hits a six month high. Raising alarm bells about the health of the eurozone economy ecb president mario draghi prepares to say farewell nor keya shares drop over 20 . Warning tough competition is squeezing margins. Tesla shares jump up 20 with a surprise profit and bullish outlook. Well we are looking at a sea of green in europe across the equity markets the dax currently up 0. 4 . The ftse mib outperforming the ftse 100 up 0. 6 that focus around the earnings we have a raft of earnings coming through one sector getting a boost in recent trade is up about 1. 5 a lot of this strength seems to be coming off teslas support. Much stronger than expected on the back of good news there. The key message here yes, weve got the ecb meeting taking place no major policy changes are expected we are in waiting now. The clear focus seems to be on the earnings coming through. They seem to be not as bad interesting to take note where the euro stands. On that mark flat on the day trading a little light Still Holding firmly on the 1. 29 mark. Following a positive session yesterday where all three major indices had a decent day ending in positive territory and corporate earnings continue to roll in. Very focused on what corporate had to say lets talk autos. Posting a surprise profit beat the Company Posted a bullish out look saying the new factory in shanghai is ahead of schedule. The ceo elon musk said it will be a template well build a giga factory in europe well announce the locates of that factory before the end of this year. Musk also sounded a positive note on the future growth of electric car sales when flat screens came out, there was a change in demand now getting a flat screen was better than having a small crt tv i think well see the same thing with electric vehicles they wont buy a electric car because their old car wore out but because they want a better car. Ford beat forecast but the net income was lower to 2018 ford is in the midst of an 11 billion Restructuring Plan moodys downgraded the Credit Rating to junk status in september. In europe, daimler has posted better than expected pretax profit thanks to strong sales of mercedes passenger cars but expects earnings to be lower partly due to Legal Provisions joining us around the desk, the Equity Analyst from jefferys picking up right away on daimler and the reaction we are seeing is this the case of not being as bad as feared or are investors genuinely as bad as they were. Earnings are better than expected more of the ongoing debate that it was been poor cash. We think daimler has a Balance Sheet and a debate around this that cash flow is better weve seen a huge balance in the stock price. I want to pick up on the negative cash point. It seems it is not an issue with daimler but other issues as a whole. Renault in a similar situation is that how you are distinguishing the name. Are they generating the positive cash flow. Next year will be the 11th year of the auto cycle. You expect Balance Sheets to be much stronger. That is not always the case. That is the case for bmw, renault has the worst Balance Sheet. It is an unusual situation usually at this stage, you expect to have the Balance Sheet across the stage you want to have a better Balance Sheet to cope with that. We are seeing auto stocks up about 1. 4 i cant help but think a lot of this is tied to what we see in tesla. Up 20 , there had been many concerns around tesla here do you think a lot of what we heard around that story. We had those numbers before good across the board the cash flow is solid they are telling me now the model will be early. The shanghai plan is a bitterly. That is a change in the running of the business. It seems to be operating smoother than we had been for years. You think the change has been happening faster we see concerns for everybody else joumanna had a question, now this is a notoriously volatile sector how do you think the market in europe is positioned when it comes to auto stocks most are still out of the sector so shares move a lot on the short expectation of the position it is true that most have been so negative. All of a sudden, there is some stablization of the market we look at more Interest Rates cut so that helps. So the macros are looking better i feel we cant really have a conversation about autos without looking at this looming deadline how much down side would that pose to the auto sector, particularly to the germ