In the midst of allegations of corruption. Welcome to countdown. A warm welcome to the program. Japanese shares are on the tear. We are joined from hong kong with the latest. The market didnt get everything done on friday, did it . It is getting the job done. It has been rising. It reached a six year high closing 3 higher. Brokerages and consumer lenders led the game along with exporters. It was more than twice the 30 day average and it was closing 3. 3 higher. Itone point during the day, surged above 17,000 for the First Time Since the financial crisis. It closed out the best twoday gain in six years. It could not get the job done. Holidayy was a public in japan so we were seeing a lot of movement today. Saying itecurities was such a big impact from that additional easing that the that not everything could be priced in during one gain. The fact that japan raised its target for annual purchases of japanese government bonds to ¥80 trillion while tripling its purchases of real estate. The pension fund the Japanese Pension Fund is one of the worlds biggest and they are weighing what will be mastic leanne in the market domestically in the market. That is what has been helping stocks rise today and on friday. On the same day they made the announcement about the additional easing on the public pension funds, they would increase their allocations to equities. They will say that they are boosting their targets of 25 of each japanese and overseas equities from 12 each. The amount going to bonds another hand will be reviewed. 180,000 187 billion in two markets across the world. Japaneset going to shares will be 86 billion. That is the answer anticipation for the allocation is pushing up stocks as well. Once the bonds completes its strategy shift, it will own about a 6 of japans equity market. Just to give you an idea of what 6 would mean. The investment would be able to buy everything in new zealand, greece and morocco combined. That is a really nice context. Thank you for the round out. Biggestnited states bank is facing a criminal probe in its business jpmorgan boosted its National Estimates to 5. 9 billion for losses. Whate talking about jpmorgan called a reasonably possible loss in relation to legal matters. That number was something they had at 4. 6 billion back in june and now they have moved it up to 5. 9 billion. More than 1 billion higher. There were so many regulators involved, places to be pushing for money. The department of justice, u. K. Regulators investigating. On three continents, there are investigations going on into whether foreignexchange markets were rigged. We heard from a number of bank globally about their exposure u. S. Bank and citibank faces criminal inquiries private from the doj. Include a 600 million charge. It raises the question of how much this will impact the sector. You get this from jpmorgan. Caroline spoke to sergio last week. Its like we are in the endgame in putting quantums around the Foreign Exchange. We are getting into the very near endgame because it is coming out with technical provisions. Citigroup, you mentioned that they had made the provision and adjusted the thirdquarter numbers. There is no irony lost. Actually globally, 41 billion for Foreign Exchange. 24 billion dollars of those penalties will go towards the United States authorities and then you have europe and the u. K. When it comes who is the player in the Foreign Exchange market it is about 5. 3 billion today 5. 3 trillion today. Deutsche bank probably will be the most impacted in terms of 5 billion euros. They have 16 of the market. Barclays comes in behind it. Ubs comes in after that. How did it get to these numbers . They look at how aggressive the penalties have been. K, there is more aggressive than we thought, less aggressive on that 1 put it all together and you come up with these numbers. It is the size of the fx business. I suppose how grievous the collusion was if there was collusion. If there was a form of it, what size did you collude over and did customers who lost the most . We will continue to watch that. The European Central bank is back in focus this morning. You would expect that anyway but today it is officially taking a lowkey approach to the biggest expansion of its powers and since the start of the euro. Get used to hearing about fsm, another acronym. That is the supervisory mechanism. The bank is overseeing the euro areas of 120 financial institutions. The woman in charge is danielle nuy. We are ready to take the responsibility for the euro banks. For this, the parliament deserves praise. They have played a key role in developing a ambitious Banking Union that makes it safer. The Banking Union that ensures the Banking System can once again effectively sign on to the economy thereby creating growth that is necessary to reduce unacceptably high levels of unemployment. Fifa has lost one of its biggest backers. Not extend its contract beyond this year making it the first top six sponsor to abandon the Company Since allegations of corruption began. Elliot, these relate to the voting on hosting the world cup. Remind us of the controversy. The corruption allegations relates to the voting of who gets to host the world cup. Specifically, the collection of the 2022 world cup. Emirates was rather vague as to its decision. They said this decision was made following in a valuation of the contract proposal which did not meet emirates expectations. No mention of the allegations of corruption. Postelection, reelection of the presidency in 2011, a spokesperson for emirates said they were considering ending the relationship with fifa or the toptier sponsorship of fifa as a result of these corruption allegations. It is not unreasonable to assume that the statement from 2011 and yesterdays decision are related but emirates has not specifically said that. Nevertheless, does not look good for fifa. What about the other sponsors . They are another really big corporate names here. Will they follow suit . You are talking about the biggest corporate names in the world. Some of it the answer may depend on the internal investigation that fifa is caring out. The results of which are due this month although feifa says they will not publish it for everybody to see. We are talking about the likes of cocacola, hyundai, sony and visa and until the end of this year, emirates. There was a huge amount of money on the line here. Every time the most worlds watched event generates 5 billion worth of television and marketing contracts. These Big Companies know that they if they decide to break ranks and and their sponsorship plenty ofhere are other companies queuing up to take their place. In an interesting twist regarding emirates departure will give youp, i one guess as to which Airline Might be in line to replace emirates. Come on. I know you can get this. I was going to say that event was going to be hosted in qatar. It is not take any stretch of the imagination. Thank you, elliott. Todays election day in the u. S. The dollars are being spent in the senate seats remain tight. Can the republicans take the majority . We will get the scoop from bloomberg corresponded hans nichols. Welcome back. To the pollsead today for the midterm election. President obamas low Approval Rating could work in favor of the republicans who hope to take control of the senate but several races remain too close to call. Who better to call then our former White House Correspondent based in berlin hans nichols . Which states will we have to watch . His of the big u. S. Event . I will use this as an opportunity to educate you about the geography of america. We have a few states that are still in place but even democrats are privately conceding. That is when everyone can controls about the u. S. Senate. Take a look at the seven most competitive states. Alaska, arkansas, colorado. Republicans need to win two of those seven states to get control, to get to 51. They seem like they are well on their way. In terms of what to watch for, time polls at what close North Carolina closes at 7 30 p. M. Eastern if you see big numbers, even New Hampshire which is trending towards blue states, it has become much more democratic in recent years. If New Hampshire looks like it is going republican, it will be a tidal wave. Potentially with some governorships. I try to get a sense from some lobbyist sources about what was going on, you cannot find a republican lobbyist that is in washington right now. There in the states, knocking on doors, doing fieldwork. They want to get in good with the new senators so they have something to tell their clients. You can get a table at the bombay club. I will take you to washington and finally get a table. Expenset think the account has that appeared he is paying . You would be gracious . If republicans take control at least on trade, they are more likely to give president barack obama fasttrack trade Promotion Authority through this trade deal. It could be in slightly better shape. And then on Corporate Taxes there has been quite a bit of he is in his own tough race and it looked tough a month ago. That could mean lower overall rates but in some cases some corporations may end up paying more. We will have to leave it there. Thanks to hans nichols in berlin. Make sure you stay with bloomberg because we will bring you some full coverage. It is an election all nighter. We will stay up and bring you the results of congressional races. 17 minutes past 6 p. M. 6 a. M. In the words of mario draghi the scope for purchases of Asset Backed Securities is rather large. He has written to members of the European Parliament saying that asset purchases will have a sizable effect on the banks Balance Sheet. Our next guest joins us now. Good morning to you. What do you make of these comments overnight for mario draghi, the fact that the assetbacked securities pool that he is picking from as he balanced to build up sheets, he said it is rather large. Is it enough to allow him to grow the Balance Sheet through these purchases alone . Theres the question of scope and scale. It looks a key was responding to the question of are you buying enough different instrument so that you support various aspects of the economy rather than just one which maybe would do if you just bought a sovereign bond or bought smebacked abus. It is consumer backed loans and commercial back mortgage and sme backed loans. The question that markets are asking is, is the scale sufficient . Is in the range of 1 or 2 of gdp. Apart. Different this part of the communication problem, when we know that he has eliminated mandate. That the germans and others are against buying sovereign bonds but we do not have anything to hang our hat on. We have nothing to judge the momentum of the cb program. Qe1 and qe2ave and openended qe. In the press conference he has tried to slip in the number of one trillion. Vague concept itself. He tried to give us a number but within the ecb and the other Central Banks in europe among there is a bit of apprehension about giving a number because there is not the experience of what you can buy, how much is going to be sold to the ecb by those who hold these assets at the moment. I think they will they want to make clear, they want to buy many things, the scope is very large and theyre going to try to boost as much as possible but they themselves will have to see how far they get in the early stages before they can give us a projection of where theyre going to end up in two years. Thank you. Stay with us. More analysis when we come back. Stay with us. Welcome back. Us. Guests stayed with lets talk about japan. It is quite stunning, isnt it . They have a number. They really rolled the dice, ¥80 trillion. Is yen is dropping. Level yields are, it will have an impact. On market sentiment. The reaction of the markets shows there is apt tight in the markets for Central Banks there is an appetite in the markets for Central Banks. There is a big psychological impact and that will translate into higher growth. The impact we have seen relies on the surprise element. Youre not going to get much surprise if the ecb does something people have been talking about for years. It depends. There is there are doubts how far the ecb would be prepared to go. But they have so far has not impressed markets. You might argue that is due to other factors. If the ecb came up and said this is our qe program, it consists , that wouldchases impress markets and it would have a big impact on european markets. Of course ultimately if you do not underpin that with Structural Reforms, then it will be a flash in the pan. That is the big risk as well. In europe we have had Structural Reforms in some parts. Some big trends missing. One third has had reforms and been nohere have serious reforms it. That is what they need to make this sustainable. What this does show is there is a psychological, a signaling effect of monetary policy. I think that is something that europe could learn from. In terms of deliverables what can they do to convince the market that this is on the way . With a need is to solve the longterm problems. The fiscal side is one and they have made some impact and that will be tough. Is the case that they will raise next year. They need more immigration. More than the program they have. Electric dreams. Earnings are breaking next. Welcome back. Time to see how the Foreign Exchange markets are looking. Asia wraps up. The dollar is coming off almost the highest level since we have seen since 2009. This is the bloomberg dollar index. Jobs reports, long. Pimco have a note out on the website saying that they are the dollarerweight versus the aussie in the euro. Suggesting the dollar is slightly overboard on a 14 day basis and the dollar is coming off its highs of the day. 15 months in a row, they have left rates unchanged. This is the governor saying it is against above fundamental value and will take time for item limit to fall. The off the years lows for 2014 aussie dollar. Lets talk about some breaking news this morning. That is a sales touch ahead investments. Em w confirming their forecast for 2014. One of the interesting things is looking at the margins and how they perform against their rivals. This is the number one luxury carmaker. A position they have held for the last nine years. Lets get to hans nichols who will be monitoring this story as it develops throughout the morning. Have does look like we them beat on the top line revenue number. We will begin on what the possibility is doing. Many rebates are they terms, where are they in of european and china sales and when we look at bmw how they are faring in the electric segment. They will be going up against mercedes new b class. An electric motor under the hood. Bmw has their own electric models and they are selling well. Here is another thing to look at. How are they doing in the overall global auto race. Bmw is in her position with 1. 32 million cars sold. Mercedes is further back, moving into second place. We will see whether or not theres a photo finish and we will take a closer look at the numbers. At first glance, they look ready strong. Certainly on the top line. Well get more on the story as it develops throughout the morning. Europes largest tech conference opens today in dublin in four short years. They have grown exponentially attracting the biggest investors and companies from across the world. Caroline hyde is in dublin. Give us a sense of the scale of this event. The actual event. Good morning. This is the calm before the storm but in four short years this event is normas. 20,000 attendees will this end upon these buildings in just a few hours. 20,000. They are coming across from 86 different countries. You can imagine the chaos is that is going on as everyone jets in from farflung places. From america, russia, ukraine, europe. You have the a list in terms of investors and founders. You have peter teal who cofounded paypal. He will be taking to the stage along with the founder of dropbox. And some minor celebrities themselves. Eva longoria is in town. Paparazzi following her around. Forbes has its own stylist list. They recommend what you should be wearing for the event. Something a little bit right to stand out. This is the scale of the event. It has its own style listings. There is no doubt you will stand out there. Does give us a quick sense, how much tax conversation will be talked about because some people say that is one of the key reasons for going to ireland to do business. Of course, 12. 5 Corporate Tax rate makes it attractive. Ireland has been changing up its Corporate Tax rate of late. This is a way of reducing Corporate Tax even lower. Think of the backlash that companies such as apple or google have found themselves and by using ireland as a way of reducing to the very barebones their Corporate Tax. Ifs is called into question it is still an attractive place to do business as ireland is closing that loophole. Is rampingt twitter up the size of their office based maybe it is not just a about attracting delegates, it is trying to foster growth in terms of technology. Some American Companies call ireland home. We will be talking about the initial share sales outlook, ipos, were talking to the head nasdaq european listings in just a few moments. Stay with us. Have a great day. Standout from the crowd. Caroline hyde in ireland. Travel professionals are talking content creation. How can companies a more effective . Ativering a keynote speech the event and joining us now for more. Thank you for coming in to talk to us. It is an easy not an easy sell. I am sure you can package that up into something that is shareable. The main challenge is instead of thinking about how you can [inaudible] think about why not creating stories