From bloomberg here in london. The banks are a big theme in europe. What me assure you of that. Is gettingito santo a bailout from portugal. Profits fell by 12 . That missed analysts asked him its estimates. Lets figure out what is going on. Jonathan ferro and manus cranny are with me. Bes, it looks so simple. I dont think it is that simple. You have a bailout. You have some money left over from the bailout support to recapitalize the banker in that goes to read capitalize the bank. Are going toeople bear the brunt like the shareholders. A lot of analysts are saying. My take away is within two share price has dropped 70 . You have seen a bailout. This has played out in almost no time at all. This is just before those stress tests later this year. Despite the fact that there is a clear sovereign link, this money is coming from the lens of resolution fund. How is the fund being funded . By the government. Offhis bank will get spun and people will get shares again. It will get sold off. Lets just hope there is not another one. I am being my usual miserable self. There is a bank in transition. Profits are down 12 as you said. Bank that has been asia focused. His revenue is down. His revenue is dying in latin america. The reason that why i focus there is because it is a hard toss between latin america and asia. 40 comes from asia. It dropped by 15 . The bigger revenue drop is in latin america. That is ready or seen the revenues fall. They talk about an unprecedented regulatory. As you look at the Playing Field of banks, who is running to the finish line in terms of litigation . The argument would be that hsbc of the Foreign Exchange market. That is yet to be sorted out. A lot of their issues are behind them. Many of the banks that we are still looking at with litigation issues are standing and those fines are going up. I havent talked about Deutsche Bank yet. You are looking at Foreign Exchange. You are talking about a size and climate of scale of fines. It is farther ahead of the pack in that litigation rosses. Process. Couldstrikes me that hsbc be one of the most exposed institution out there. People are talking about that being a possibility on the credit side. You might see a problem generated by the fed. It could be an institution. I wonder if the numbers are a foretaste of that. He said exactly that. He said forget about what is going on in china. Look at what comes through in latin america. China could be part of the story as well. 14. 2 of their revenue, latin america is 15 . Thatuve got countries could generate problems. There are two other themes here. Shrankbad loan charges to 1. 8 billion down from 3 billion. The costs are rising. His Investment Banking revenue has dropped 700 million. Take away the noise. Bank hascapitalized good geographic distribution of a couple of hot spots to keep an eye on, one is latin america. Pointond and equally sore is asia. Filled here talking about banks. The financial crisis is still here with us. We still have so much more news to get through. Thank you very much. Lets turn to the situation in the middle east. Last leftours in the ceasefire. Lets go to tel aviv for the latest. The ceasefire is interesting. Unilateral grade the israelis are saying we are just going to figure out what our objectives are and decide what to do after that. Right. Weekendelis since this disputed this ceasefire breach. Israel said that hamas reached it. Hamas essentially tried to capture a soldier. Dont trustthat we hamas anymore. Will end thislly operation whenever we decide to under terms that we decide. In terms of the implications of the diplomatic effort, what are they . Israels foreign minister just went on and he said we have to figure out what to do with gaza after this operation is over. He called on the u. N. To see about the u. N. Taking over gaza. Most middle east watchers would dismiss that as difficult if not impossible until hamas is no longer in control. Israel has been floating the disarmsity that israel hamas and gaza exchange for economic opening and the end of the siege of gaza. There is an increasing debate about disarmament of hamas for economic improvements in the situation there. Asis hard to imagine that long as hamas is armed and in control. A series ofl be difficult questions to answer as soon as this conflict is over. One of which is ongoing at the moment. The shelling of this u. N. Shelter. What do we know at this stage . This is still under investigation. It has been severely condemned by the United Nations and the United States. The ambassador from the United States called a horrifying event. There are going to be repercussions of that event. It is the third such shelling of the u. N. School. Israel has said it is looking into it. That it wast said directly responsible for it yet. There are going to be disputes about. It is under the spotlight right now. We will leave it there, david. Thank you for the update. He is joining us from tel aviv. Service hass it been suspended until further notice. That is due to the outbreak of ebola. 800 lives have been lost in west africa. Outbreak is stunting liberias economic recovery. The International Community must do more to help stop you below from spreading. This is an emergency. We have never experienced this before. The control measures that we need to put into place have not been adequately put into place. Up. Re now gearing very fast so it does not get out of control. That was the president of liberia. You will hear more from him later on in the hour. An earthquake in china has killed 381 people and injured nearly 2000 more. It was a 6. 5 earthquake. More than 12,000 homes were destroyed. Communications to the region are still cut off. Tourism in turmoil. We will talk with a former official from the Israeli Department of tourism. First. Bloomberg. Welcome back. It we are live in london. I want to show you some things. This is the british pound versus the u. S. Dollar. The u. K. Has been picking up the pace. It is been a dire decade for british house builders. We have pmi data out this morning. Construction grew. This was on the upside. , it is down the from better than expected. We need to build a few more houses. The other one i want to show you is israel. Dollar versus the israeli currency. We are going to talk about the are is him industry. Weakening has been over the last year. That is a significant headwind for the tourist industry. There are plenty of others. Lets talk about it. They are pulling some troops out of gaza. They may be winding down this assault. Impacted therely tourism ministry. Lets join eli golden. He is joining us from tel aviv. He is the president of the tourism organization. Thank you for taking the time to talk with us this morning. Badly think of the tourist industry. How badlysense of affected it has been by what weve seen over the last few weeks. It is very bad. Year. E facing a record 3. 5 million visitors. July and august are the record season. They are the high season in the hotel business. Around expecting to have 85 occupancy. In tel aviv and we fell down to 30 . This is very close to gaza. We are facing a huge crisis. How significant was the short term band that was put on by the faa . It is the short term magnificent. We are losing visitors and tourists. We are losing income. We are losing profit. We have all of the expenses that we have to cover. In thetell you, i am Tourism Industry for over 20 years. President. Hotel business and i am running three projects in israel. We will overcome this crisis. I am sure. Israel is not a trendy destination. That has anination advantage of having the holy places for all of the religions. Take and bewe will back on record. I spoke with the minister of tourism and the minister of finance. They are preparing a Huge Campaign to make sure that people understand that they should come to israel once again. Any help like tax breaks or Tax Advantages . Something did with the industry back on its feet quicker . No question. I spoke with both ministers. Unfortunately, we know such a crisis. Tourismrnment helps the thestry to recover because recovery in tourism takes longer than it takes in other segments. Get back our revenue. We have a city tax. We reduce other taxes. We have special loans to the hotels to make sure that they can overcome these dramatic periods. This will begin to the industry. We are negotiating and we are in talks under the leadership of the ministry of tourism. Will have the mechanism. There is no question that after this we will immediately help. We need a Good Campaign to come back. Im sure that people all over the world will come back. Just one final question. The currency. It is incredibly strong at the moment and has been getting stronger. How big of a headwind for you is this . If we could get a cheaper shekel, how big of a difference would that make . There is no question that the Exchange Rate effects the income of the industry. We have 50 visitors from abroad. From dollars. Ome or the euro. I hope that after the crisis the bank of israel and the ministry tofinance will take steps change the Exchange Rate between the dollar and the shekel. Thank you very much indeed for taking the time to speak with us this morning. Dont forget. Come and visit the holy land. On that note we will leave that conversation as we head into break. These are live pictures from belgium. The are commemorated hundred anniversary of britain joining world war i. They entered the fighting on august 4, 1914. We will leave you with these pictures. It is a difficult day for europe to understand. It is hard to get your head around how this conflict resulted in such extraordinary loss of life. We will see you in a couple of minutes. Berlin has the capitalists were it again. We will disturb and if, as buildings will have protected status. Generation after the berlin wall came down the city is still divided by this. This is a transportation hub. It is a core of old east berlin. It is a scene of controversy. The question for investors is which buildings will make way for redevelopment. Statistics can be dizzying. It is scheduled to be demolished. It this is the house of electrode technology. It is long like a skyscraper fallen on its side. As owners are worried that landmark designation will complicate or slow development. Who overlook the square say a revamp is obvious. If you look at this highrise here, there is a Department Store there. It looks shabby. There is so much going on. There is money to be made in development but history to be lost. East german rooms were bugged. It is just 37y, stories of glass. Developers have another nemesis. Buildk gehry project to an apartment. It would have stellar views. Just like those of the house of travel. Even inside there are a few flaws. There is not much headroom. Not much room for a city to grow. Hans nichols, bloomberg, berlin. He is fairly tall. Break, you can follow me on twitter. Were going to take a short break. We will continue the conversation right here on the pulse. Welcome back. Youre watching the pulse. I am guy janssen guy johnson. People have gathered to commemorate the hundredth anniversary of britain joining world war i. In 1914. The french president is speaking live. Portugal has taken control of Banco Espirito santo in a 4. 9 billion takeover. Junior bondholders will have significant losses. U. K. Homebuilding expanded in july. The gauge rose to its highest level since 2003. Itscreation expanded at highest rate since the gauge began. If i said to you we are coming off the work worst 2012,f u. S. Stocks since you might expect a significant monday. This is not a rebound. Down here in portugal, it is up 1 10 of 1 . Think about that. Here is the take away. After all the happy talk about the eurozone and the banking system, a regulatory favor comes to light. That stock was down 70 . Now you have a bailout on the table. How quickly things transpire. Much unchanged on the day. That u. K. Construction data expands for a 15th straight month. It comes in at 62. 4. If youre not familiar with emi, anything above 60 is out she. Punchy. That data and the housing data supports the bank when they meet this week. Somebody has got to hand up in dissent. Surely a rate change is coming. I will put my neck on the line. We will get an Inflation Report in a couple of weeks. Remember that everybody. Us keene is going to be join shortly from new york. We have a preview. I have a bow tie that is not set up straight. There we go. After the jobs report on friday we will look at the american economy. And biglook at retail box in america. The walmarts and the targets. About thelk Portuguese Bank failure. These are two guests to dive into the european ramifications of what we will see off of the failure in portugal. Fed andtalk about the janet yellen. We will look at iraq and israel. Isis. Dvances were made by it we are in the middle of that truce in gaza. We will go to tel aviv for comment. Thank you very much indeed. Tom keene is joining us shortly. The Ebola Outbreak is gripping west africa. It is a threat to neighboring countries. 800 people have died, make it the deadliest outbreak. The numbers are getting dramatic to say the least. What do we know . 1500 are infected. They tend to die. They have got three countries declaring states of emergency. It is so deadly that it is deemed a category a bioterrorism agent. The United States department of defense that Funds Research to finding a cure. There is no known cure as yet. The who is asking for 100 million to put more nurses and doctors on the ground. All they can really do is help you and give you fluids and some sort of and about except hope owneuro owner your immune system will fight off the virus. Only 10,000 people have ever died from this virus. It was discovered on the banks of the ebola river about 40 years ago. They are helping a sudden Development Certain drug development. Company thatpanese has a chemical unit that is developing a virus prevention for the influenza violence. There are antibody cocktails being developed. These are very Small Pharmaceutical Companies being supplied with money by 28 million grants here. This is very small fry you think of the billions that have been poured into tackle hiv or finding drugs to cure that virus. We were talking to a guest earlier. In urban areas in these countries you dont really feel the effects. It is a new get out into the towns and you feel the force of what is happening. If you are a western company you have to be very careful, especially if you are a mining company. Seenny are analyzing and if it will impact their businesses or their production. In sierra leone you have Companies LikeLondon Mining or african minerals. These are the biggest contributors to the economy in sierra leone. So far production has not been hit. A hugeria you have steelmaker. There is no impact on their liberian mines. Corner. Just turning a if this catches on further it will hurt their economy. Nestle has 6000 employees. If this may hit Business Activities going forward. Stay with us for just a moment. The mattingly sat down with Vice President of liberia. Emergency that we have never experienced before. The control measures that we need to put into place have not been adequately put into place. Up. Re now gearing we need to move fast so it does not get out of control. This is going to challenge all of our Development Agenda and our infrastructure. It will challenge all of the things we have made since we came to power. This is been a growing issue since march. We have 700 individuals who have died. How is more not done prior to this time . It was this started, entirely a new situation in our country. It there was a lot of denial because people felt this was a scheme. It we believe the response was there. Needed to be timelineis there a when you want this issue to be contained . Can it be contained . We believe in about a month. Vigormove with the same and tried to bring in a committee that is allinclusive and working with a Lookout Community trying to see the security with the police and soldiers to make sure that the Health Care Workers are protected. Pleas to any any organizations . Situation will need to be brought under control in a timeframe. That is on course. Millionve that the 100 by who. We believe we will need more than that. In 2015. Pect a pullout is there has it come to a moment where your administration has approached the u. N. For an extension of the timeline . These issues have been dealt with. Isbelieve that the drawdown something we have to put into place. It those logistics will no longer be provided by the peacekeeping forces. That is a serious challenge. We believe that the International Community understands where we are coming from. Will not be in a position interesting stuff. They are beginning to understand the magnitude. To getlt it was a plot the population to do something else. The magnitude is 800 people dead. They understand what needs to happen in the way it needs to change. A lot is education and sanitation. There is a fear factor. People have the virus dont want to go to a hospital or go to a neighboring hospital. Stigma. Scared of the it continues to spread. We spoke to the world health organization. To spreadis unlikely in developed nations. We have better sanitation processes. They have asked for 100 million. They need to ring money out and help control in western africa. Talking about 6 billion 6 billion euros to theyll out a Portuguese Bank. Thank you very much indeed. 40 african heads of state will have the subject on their minds. Trade ands to provide encourage u. S. Investment in africa. How goods and investments in africa will look like in 50 years, that is the question everybody is asking. Is divided by language and culture and conflict but united in democracy. It is young. Populations are swelling in the cit