To former u. S. Ambassador bar rain will join us to discuss the crisis in iraq. The joint effort between the u. S. And iran to tackle sunni extremist in the country. The Guardian Newspaper says news corp. Faces possible corporate charges related to phone hacking and bribery, according to prosecutors. Here with morris ryan chilcote. They may interview Rupert Murdoch as a suspect in the case. The u. K. Police. We also know now that prosecutors are considering corporate charges against news corp. It dealt. The fact that they are considering corporate charges is not new. In fact, it was revealed many times during the eight months trial. However, because of the u. K. Law that calls for national a doubt the groundwork for fair trials, reporters were not allowed to report until the trial ins. Rebekah brooks found not guilty, jurors are still deliberating over whether he should be convicted for bribery. We are getting a sense now is the trial wraps up where this could go. How likely is it that corporate charges will be brought against news corp. . Colson has that andy been found guilty of phone hacking makes it more likely there would be appropriate prosecution. If there is corporate likelytion, its more there would be actual charges against members of the board , the controlling officers who were supposed to be making sure this kind of thing was not going on. Cooperated,ays we we paid compensation to victims of the hacking, and we have changed our Business Practices to make sure this never happens again. About Jeanclaude Juncker. He is confident eu leaders will pick him as the next Top Executive. His candidacy is on the agenda at this weeks eu summit. That spring in hans nichols in berlin. Lets bring in hans nichols. He was speaking to a Defense Industry lobby, a very confident man, as you mentioned. When i put the question directly to him, he had a oneword answer. Give us a sense of how confident you are that you have member support. You have this in the bag . Yes. Everything is indicating that the council will take a decision next friday. All this is going to make things very difficult for David Cameron. Be opposedlled he when eu leaders meet in brussels at the end of the week . He is our man. Believeutely refuses to that the public really have a proper understanding of the grand european project. He belongs to that very Outdated School of eu thinking. He is not quite attempting to mend fences but at least he is throwing out an olive branch to skeptics. He did make one thing very clear , the stability tax will not be altered. That will be somewhat consoling to eurosceptics. He made a joke about being transgender. He clearly thinks hes going to be the next eu president. He will likely be ratified on friday. To become the number one geopolitical threat, yesterday we told you iraqs key oil refinery had fallen into the hands of insurgents. Now the army says it has retaken the facility. Confirm that the oil refinery is completely under the control of security troops. We repelled all terrorist work thehat tried to determination and persistence of our armed forces. Meanwhile john kerry is in the capital of the semiautonomous kurdish region in northern iraq. Hes trying to get the kurds to help counter isis. He said they pose a legitimate threat to baghdad. Capitalops in the iraqi are assessing the possibility of american airstrikes. Citigroup and bank of america both warning of the conflict in iraq is a bigger risk to longterm oil prices than traders anticipated. Later in the show we will hear firsthand the difficulties of managing relationships between the u. S. And the middle east when a former ambassador joins us on the set. Dont miss it. Here is our markets editor, manus cranny. One categories about equity risk and the other is about market risk. Indicated lower at this stage, despite yesterday , the best in 22 years. Society is changing. Lets take that off because obviously the paris market and the dax market are not open. Lets look at the u. S. Futures, a little bit better indicator. Risk associated with geopolitics, i was reading through gold and crude. Why is the yen not stronger . Why is gold not higher . Why are these the typical markets that one goes to when there is an escalation of risk . Markets are either dissuaded from the reality of risk, or there is the ongoing sanctions discussion due to come on force on friday in russia and the ukraine. Have a look at this, Goldman Sachs say valuations are very supportive. Lets look at the topics. They have a target of 1450. Not going to happen. What about bubbles . Could we be back in bubble territory . Have a look at the dow jones and the s p. The dow was up 104 over the past five years and for march 59 . Roughly where does it off fit in with the. Com bubble . We looked at the metrics and 2014where are we now in relative to the. Com bubble. Well, get ready for it. According to the price to sales ratio, im looking at price to markets in both those are up 200 . And they still have three more years to go, in the read. It is dominated by one over aggressive theme. Free money for all my friends for as long as you need to be dont worry, were not going to raise rates for a considerable time. You were going to sing a song for us from 1996. The last time these markets the producerevels, who helped do the hit for me was seven years of age. Bill clinton was only beginning to talk about what to do in the white house. See you later. More from our exclusive interview with the japanese Prime Minister, next. We will bring you Prime Ministers question time at noon in london. Dont miss it. Time for todays company news. Abbvie has been rejected on three different takeover offers. A bid of about 51 Pounds Per Share would do the trick. About 26bank lost junior bankers in hong kong over the past four months, according to people close to the matter. Thats the biggest number of departures in at least five years. Bankingg investment revenue from the region contributed to the departures. The companys largest natural distributor come the move comes as the french government looks to raise funds. The time in london is 6 14. In exclusive interview with bloomberg, the japanese prime the stateade it clear has the country has emerge from years of deflation. Thanks for joining us today. The end of deflation has been declared. Clearly we have seen inflation moving away from that thatbound, that tendency has been in selecting paint on the japanese economy for the last decade or more. The question is, is that enough to get us to that inflation target . Zeroy have moved away from but i dont think we are necessarily getting towards that target on a sustainable basis. What about a sustainable pace bygrowth, 2 on average, 2020 . That seems to be the target, jeremy. He has outlined more specific measures. Are they achievable . Detailsl will be in the when we actually roll out those reforms. The ultimate problem of course is not the Prime Ministers plan, perhaps the rulety or the desire to out the structural reforms. That may be the longerterm issue. We are talking about increasing the number of foreign skilled workers. Are the old guard going to be called as and of those risk factors because of the issues related to demographic change, or are they going to allow the changes to go through . Will bergets increasingly compromised. We will talk about again. E will talk about the yen what is going to break it out of this narrow trading range . The question is, you can argue that the risks are providing a little bit of lift for the end. Nevertheless i think it will be that willates spread be the catalyst to get us up to that area. Why havent we seen further weakness in the euro territory . Pmi data that came out earlier this week missed estimates but the euro barely budged. Why have we not seen further moves to the downside . Becausenk partly its the market is already short euros. Ever since we saw the precommitment from the city back in may, the markets are gradually moving further and further. We also need more support from that u. S. Leg of the equation. I think we need to see more support and more positive data from the u. S. It is provide showing some signs of creeping up. The gg gdp data today is old data. I think we need to get through the Second Quarter and start to think about the third quarter. Presumptionde this that those u. S. Deals will climb as the markets consider the end of tapering and what it implies for the supply chain. Jeremy stretch is with us. Stay with us. Welcome back. This is countdown. Stretch is here. Unreliable boyfriend, flip flopper, he has been called a number of things in recent days. Was it a fair criticism . At think is reputation has taken a little bit of a knock in terms of political angle. Last summer he was talking about rates not moving for longer than you would have regarded as an normal. As a normal period we have now seen market being forced to come back in and consider timing much earlier. Shaket really wanted to nurkic complacency. Theink we are now back to data watch. The wage data that he highlighted yesterday suggests they are not ready to lift borrowing costs. Those are the two elements. Process. Ebulous its a difficult backdrop. That one line got all the attention. There were a number of caveats if you read the speech. Thats really what he has repeated. Media justeam news picked on one line of the speech and amplified it. We had the assumption that sterling was pretty fully valued. Its always been the case that iness you really believe maturity hikes sooner than the markets have seen, it was very difficult to suggest sterling should rally more than they u. S. Dollar. Sterling remains well valued against the euro. The data is moving very much in the opposite direction. How should we be positioned for tomorrow when it may and probably will announce some measures from last week to slow down parts of the Housing Market . New zealand is an obvious case in point. There seems to be some evidence in new zealand. Basis it willonal be lower. Consequence, any measures announced yesterday to slow the Housing Market will mitigate the top side risk. Ultimately it will be another challenging day for those who bought into that announcement at the press conference. The Swedish Krona or is the worst performer. The talk of the town is a rate hike in july and another in the autumn as well. Spiral. Le deflationary is it that serious . Clearly there are uncertainties with a inflationary backdrop. I dont know fools he that reflected by further action from the central bank. Ultimately is a case where you do get rallies that will provide some good value. There value in the danish krone are or the norwegian kroner . Have been a guilt by association immigrating from the swedish story. Producer and events in iraq suggests there should be an element of the shorterterm coming through. Buts a relevant point probably will underperform the Swedish Krona. Thanks for joining us today from the bank of canada. Stay with us. Welcome back. Manas has a check, affects market. Coming off of fiveyear high, acting like an unreliable boyfriend. A more dovish tone to his performance yesterday in front of parliament. Is 167. 50. Look at the overall trajectory of sterling and you begin to understand we are beginning to change direction. There is a different view on euro sterling. See euro sterling, this is where you want to sell. You sell into that rally with an objective. Playing the sterling trade as opposed to the contra side. Cut are of a rate overstated, says the Commonwealth Bank of australia. You are now looking at a potential rate hike in the next six months. But these are the Bloomberg Top headlines. News corp. Fetes is possible charges including timesy, raise several throughout the trial of andy corson. It was found guilty on one charge of phone hacking. U. S. Military advisers have begun operating in iraq. They will gather intelligence and establish an operation in baghdad. As many as 300 troops will be sent to help the Iraqi Government combat a growing islamic insurgency. The white house is working on a plan with the u. K. Of reducing tension in ukraine. President obama spoke with Prime Minister cameron by telephone and they agreed to coordinate countermeasures if russia fails to deescalate the situation in ukraine. President obama is ready to issue sanctions against russian interested. It is becoming the number one geopolitical threat, the violence in iraq. The key oil refinery has fallen into the hands of insurgents. The army says it has retaken the facility area. Meanwhile john kerry is trying to get the kurds to help counter isl. Situation in the middle east im joined by the vicechairman of the Public AffairsStrategy Group at the tomer u. S. Ambassador bahrain. Thank you for joining us today. Insurgencyhas said in iraq depends on one thing, iraq he leaders reaching agreement on the unity government that addresses fighting minority sunnis and the kurds. Can this be achieved . I doubt it. Its too little, too late. The world has been surprised by the rapid advance of isis and its partners, the sunni population of iraq. For those who have been watching iraq or while, it is no surprise. We saw this coming in 2010. The Obama Administration was warned about it by the embassy in iraq. Minister0, prime maliki has been systematically excluding, alienating the sunni population for a host of very repressive measures. The fact that theyre rising up against him and saying we have had enough, you are done, should come as no surprise. Is there a plan to reunite all the factions . Its hard to say. The equation has flipped. Is there someone who can put Humpty Dumpty back together again . Frankly, i doubt it. What is the best Case Scenario here . Goes, that there is a unity government formed quickly. That is contrary to past practice. Factionsthe different can unite in pushing back the insurgency, but i give that less than even odds. Between the shia majority in the south and the sunni majority in the center and wes and a , more autonomous region in the north. Interesting he used the word selfdetermination. The kurds have always been very cautious about saying that, about leaning in that direction publicly. The fact they have done it is very telling. If you have three autonomous regions or separate states, will that fueled the sectarian conflicts in other middle Eastern Countries . Yes, absolutely. Seismican earthquake of forces, the disintegration of iraq. Iraq is the center of gravity for the arab world in many ways in terms of resources, culture, history, and power. As it loses force, there will be ripple effects with turkey, iran, syria, jordan, israel. I dont want to say or not fathomable, but very hard to predict. One thing that is certain is that you will see ripple effects and consequences throughout the region. Is there anything the u. S. Can do to slow this . Should be ison there anything the International Community can do. The u. S. Is a major power, but clearly what we have seen in iraq is that it alone is not sufficient to move things in the right direction. Thats why it is good that secretary kerry was in brussels to talk about iraq and talk about the region. This requires a multilateral, international approach with one thing in mind, that there has to be an arab component to this. Its not a question of the u. S. And europe coming in and helping them fix it. If there is not arab leadership and ownership on this issue of iraq, then outsiders cannot fix it themselves. Meanwhile there is talk out there that the u. S. Could soften its stance on iraqs Nuclear Program to get some sort of cooperation. That would be a deal with the faustian be careful of bargains. Iran is a dangerous lets be clear, it is a clerical regime whose basis is implacable opposition to the west, the United States and everything it does not stand for. Are atlear negotiations odds with the fundamental tenets of the state. That is why do not think it will succeed and i think its a bad idea to go to bed with iran. Meanwhile, describe your best estimate of how to improve this relationship with the u. S. President. The story emerging on bloomberg today that further sanctions will be considered as european leaders prepare to meet over the next couple of days. Do you see that as the next step . As messed up as things are in iraq and particularly u. S. Management of that issue has been, i think the ukraine example is a good one of cooperation, the effective use of all tools of international power, the military sending troops to poland, economic, diplomatic. The outcome was the preservation integrity, minus crimea. We reacted to the takeover effectively and prevented them from doing what he wanted to do in crimea to the rest of ukraine. When we talk about next steps, its clear to me that putin desired a different outcome than we have now. It is the result of our board made it efforts. But the danger has not passed. Putin is still a leader who russia to atore position on the world stage that he believes it has been denied for too long, as result of a cabal. K thats what motivates him. Therefore, we need to be vigilant and firm and leave him him willthat action by have an equal and opposite reaction from us. If he moves in a great direction, wonderful. We will welcome that and respond in kind. But if he moves in a negative direction, the same rule applies. Dewdrop in the next time you are in town. The former u. S. Ambassador to bahrain. Still to come, taste of victory as uruguay beats italy. Again is in the spotlight for allegedly sticking his teeth into an opponent, again. Shareholders are revolting. Will they put pressure on executive pay packages . Time for todays world cup news. The fans were counting on a uruguay victory and they got it. They knocked out italy to finish second behind costa rica. The talents despite a oneman advantage, the light uruguay would have to withdraw. Be aictory could bittersweet one for lewis suarez. Protest on the striker hisr he allegedly bit opponent. Suarez has been banned twice before for biting opponents. These colum