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tv   Countdown  Bloomberg  September 26, 2014 1:00am-3:01am EDT

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a global selloff. equities fall with the latest inflation from japan highlighting the challenges facing the country's leaders. rivulets continues at air france. talks are set to continue as the dayt strike enters its 12th -- turbulence continues at air france. . a warm welcome to "countdown." gone 6:00 a.m. in
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london. stocks falling across the globe on speculation of early interest rises by the bank of england and the federal reserve. the weakness in the equity market is continuing to move across the globe in its a feature of what's happening in asia. $1.4 trillion white off the value of global shares in the msci all world index looks to be on set for a 3.1 percent decline, the biggest drop since january. there is a smorgasbord of reasons behind this, speculation on when interest rates might go up in the u.k. in the u.s. clearly one of the fact her's. other things in the mix, peers of the stress of the chinese economy and fears of russia drawing up plans to seize assets after sanctions continued to be imposed by western countries on russia. plenty going on in markets. jumping 18%,dex 16% above the average of the year. volatility seems to be once
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again a feature of these markets. will have more information on where the markets are, where we expect to open in europe as because to the program. let's get to one of our top corporate stories. air france continues its talks on a strike that began+++
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>> they sat down yesterday afternoon. nothing has come out of that meeting. we had a statement from the sky team pilots association, the association that represents the pilots within the sky team alliance, and air france is a member. they have come out in favor of the pilots. today, the strike continues. there has been no stepping back by the pilots on that front. thehey are scrapping business of what are they holding out hope for? >> they are trying to hold out hope for this. they want to grow in holland and france. the growth in france is limited. what they want to do is transfer the short-haul that france currently has into that union. terms and growing transavia france won't be as good. >> the ryder cup starts today. nearest airport? >> edinburgh and then dundee as well. ba.ican flew in on
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the other way to get out there is by private jet. i just did a story today about people who are pooling to get a discount flight. 1800 pounds to get up there and back. a company called victor -- >> we spoke to them i think. >> a little bit of golf chat on board, i'm sure. >> kari, thanks. let's get back to the latest market moves. inflation slowing more than expected highlighting the challenges facing the bank of japan. inglis has the details. give us an update on the numbers in japan, david. >> good morning.
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we are at 3.1% and that's the headline figure for national inflation. you're stripped out the effect which is fairly volatile. some would say academic difference and some would put undershooting the forecast from economists. the key take away from this is if we did see a deceleration, it was 3.3 and in august it is 3.1%. because ofgely cheaper energy prices. japan imports a lot of its energy needs. we did see a little bit of a downtick in oil prices between july and august. that might also be filtering into these inflation numbers in japan. we spoke with the japanese economists from hsbc and she also brought up the other issue of the sales tax.
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if you strip out the effect which happened in april. ok, i do believe we will have that a bit later. basically we are at about 1.1%. toare above but the goal is percent. glass half full, glass half. let's take a look at the markets because this is one reason why there's not a lot of risk taking today. as you may well know, it dropped about two months. we're basically looking at a
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selloff across the region down the most in seven weeks taking us down to levels last spring. very quickly here, in japan you have 70%-80% trading today. let's hope next week is better. back to you. david, thank you very much, reporting from hong kong. let's talk sports. it's a win for nike. they beat the latest numbers helped by the world cup and it looks like the winning streak could continue. here with more is caroline hyde. good morning. everything seems to be doing well at nike. >> the number one sporting goods maker and it always surprises me they were only founded in 1975. sales are on track for $30 billion this year in this is the fiscal first quarter. up almost 2
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where is it performing? western europe up and we saw a emerging markets doing really well. china has been a thorn in their side as of late. up 20%, here's an interesting one in e-commerce doing particularly well. >> a big focus for them it seems. >> up 70%. t, it'se training circui be the but it seems to world cup that has really dominated front and center. the risk everything campaign was on and they got a brilliant amount of stats. they had 10 out of 32 teams, the most decked out in nike outfits. they had defining winning goal
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wearing nike boots. bystiano ronaldo sponsored nike. this was the most-watched watched sporting event in history. the amount of viewers they had overall the something phenomenal for football. >> do not start declaring certain footballers are the best as we will get hate mail. >> when you're trying to tap into those who play and view, nike made its presence pretty felt. doing quite well in golf as well. >> we had a big focus on golf. the ryder cup is teeing off and we have a guest talking about that later. it fits and slightly to your nike story. sponsored the most viewed and most engaged player, tiger woods, the most amount of likes on facebook.
1:10 am doing the company admits that times are pretty tough for golf. the challenges are there. we are seeing fewer people playing golf, not watching it as much. the money is not falling in advertising. it's very different from adidas having to restructure its whole unit. we are seeing an increase they say. the pro combo two irons -- >> i'm never without it. >> i take it around with me. it's doing really well flying off the shelves. they also sponsor michelle wie. >> investors liked it with as 17%rising as much yesterday late trading in new york. join in on the conversation anything you like or don't like, get in touch with us on twitter. i'm @annaedwardsnews.
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global stock setting for the biggest monthly loss since january. ♪
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time for today's company news. russia's government is pushing global internet services to store personal data locally.
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it will take effect january 2015 and the new rules mean that providers such as google, facebook, and the sub will have to rent service from russian providers. apple has released an ios software up it that include improvements and bug fixes for the flaws in the ios 8 of date withdrawn wednesday. they also defended themselves against complaints that the phone could then the. broad media is in talks about bringing games previously only available on consoles to smartphones and tablets. it would allow them to bring eight global audience to the smart phone users. global stocks look set for their worst performance since january with the msci global index on 3%se -- on course for a drop. nomura joins us
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now. $1.4 trillion white. so far. msci looks set to lose 3%. is ailing the market? is it a fundamental global economy concern? >> what we've seen in terms of data out of china, it seems that china is slowing and then -- aga in. they historically came in with more easing measures. we see the economy slowing and some impact from the real estate area. takingaw some banks action to downgrade and goldman sachs did that earlier this week. is that the trajectory? the downward pressure to come on those projections and is that ok in the short term if it will deliver medium-term benefits? >> there's a strong chase -- case for them to have growth and
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as a firm we think it will be much lower and the government will have to announce lower growth objectives for next year. how that is creating some uncertainty in the market, our economy depends on growth. >> let's talk about japan as well sticking with the asian economy. we saw the inflation numbers coming in a little below estimates. if you strip out the tax effects, they have a target of 2% in mind. where does this leave us around inflation because of the tax changes? bit complicated. the tax increase has a negative impact on the economy, falls in consumer demand, business investment. now do we see a rebound from here? the high-frequency data
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suggesting that businesses aren't back into investing. we have very good core manufacturing orders earlier this month. this shows there is some sinus pick up their but is still a big concern. we knew inflation was to moderate going into the fall. then the question is how much a push of inflation and depreciation will have. we could see some more upward pressure going into the end of the year. and other consumer tax increase then? that is the plan. another increase? is that mostmeans likely, you will have to see the bank of japan coming in and providing more easing to the market to try to compensate for the negatives. >> is that something you expect? will it be next month, january? >> the bank of japan is not in a hurry at this point to provide
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more easing. we expect april next year but if we see more signs that the economy is weaker than expected or inflation continues to be declining or not increasing, then japan will take the lead and start to ease earlier. nomura,ng with us from charles st-arnaud. on the get his thoughts european economies as well. it is 6:18 a.m. in london and you are watching "countdown." ♪
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>> we are back with charles st-arnaud, senior economist and fx strategist from nomura. we will get another reading on u.s. gdp later. it will depend on whether you look at the dots coming from the individual fomc members of the fed, whether you listen to the words that janet yellen said. with your take on the strength of the economy at the moment -- wha'tt's your take? >> we are getting the third testament of the second quarter gdp. we expect them to be at 5% which would be a positive upside revision compared to 4.2 or sent in the second release. -- 4.2%. they rebounded after the very
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weak number we got in the first quarter and q3 looks to be would be% but that very good back-to-back growth in the u.s. >> i saw jobless claims on yesterday continuing to point to strengthen the underlying market . do we think the august nonfarm payroll number that was so week was just a one-off? do we still see underlying strength in u.s. labor? claimsial jobless numbers are very positive. they are back to numbers we use get before the financial crisis which means there are not that many layoffs now in the market. on the flip side, we had a week nonfarm payroll but it followed a stretch of very strong numbers. it's not something i would be concerned about. there will be a lot of attention on the number next week. it will be interesting to see if it comes in again around 200,000 or maybe higher. >> how confident are the u.s.
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consumer is feeling? we do seem to be back to 2007 levels on some of these. if i remember correctly somewhere in there, that would put more money in the pockets of consumers and it would help them to feel more confident than to continue spending. back to europegs and talking about the eurozone, do you think some of the weaker does that embolden some of the more dovish voices at the european central bank? >> we're seeing the european economy is kind of moving and growth is probably flat over the second quarter and a third quarter. more and moreally
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risk building up in the european economy. main risks is probably deflation. we are seeing inflation expectations continue to decline and be extremely weak. draghi is also showing a lot more concern about it. of the keyone concerns for him, unemployment. unemployment in europe is extremely high in most countries. it's not just an economic issue. at some point it will be a more social issue which could even be the problematic for eurozone as a whole to be able to keep it together politically. it will be harder if there are more unemployed. >> do you get excited about things such as m1 money supply data? of a turnaround for the euro zone economy, the money supply data improving lending data?
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one bit of data does not make a trend, i perhaps. issues is one of the where the ecb is providing a lot rates quiddity, interest are extremely low, a lot of monetary accommodation in the system. loans to businesses and consumers remain extremely weak. declining on a year-over-year basis. any sign it's turning around will be seen as a positive that some of the excess liquidity is getting into the real economy. >> who do you think will go first, the bank of england or the ecb? >> carney has been relatively straightforward that he thinks spring is the timing. then it's more question of if it is early spring, late winter or
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more late spring? a group decision. is it easy or difficult to read? it's more about who will be the marginal dissenters. they really seem to be wanting some rate hikes. data probably see better and maybe wage inflation coming in. that will sway some of the, i will call it, the marginal voters for the rate hike. our expectation is we should have the first rate hike in february. >> charles, thank you for joining us this friday morning. charles st-arnaud from nomura. newly discovered computer flaw threatening governments and companies alike. stay with us for more on the shellshocked vulnerability. also coming up, we are turning the studio into a golf course.
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the ryder cup kicks off today in scotland. we look at the sports waning popularity and what it means for business. ♪
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>> welcome back. i'm anna edwards. the dollarging up yen for you. we've had inflation data, cpi numbers from the japanese economy, and excluding fresh food 3.1% below where they expected that to come in. if you strip out the increases in taxation we saw them it becomes 1.1% of interest is that is one of the targets that shins abe has tohinzo
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bring that into the economy. is reacting to news on the pension fund. there are signs of progress which suggest that at least that reform strategy is gaining ground. he reforms in particular would mean moving closer to boosting overseas investments by the japanese investment fund. against 14 of 16 major peers so we are seeing some weakness decreasing toward a six-year low against the u.s. dollar. let's move on. these are the bloomberg top headlines. british airstrikes against the islamist state may start within days if the house of commons -- approves military action. prime minister david cameron is expected to tell that it poses a direct threat to the united kingdom. meanwhile, they are battling to
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halt in advance by an islamic state. others are heading to join the fight while some are fleeing to turkey. they're targeting key oil refineries in syria operated by the islamicist state. the ukrainian president petro poroshenko says the worse of the war with the separatists are over. ukraine is now focusing on the election in preparing a bid for eu membership. poroshenko spoke after clashes near donetsk airport. the internet is looking a little bit shaky, perhaps, this morning. this is a warning from the u.s. department of homeland security. hans nichols joins us now from berlin. just how shaky is this. this is a response to the shellshocked bug. who is the most vulnerable?
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governments, private individuals. it affects the next-based systems including mac os -- linux-based systems. privateesearchers and groups giving warnings. this may allow remote attackers to execute arbitrary code on affected systems. i really have no idea what that but potentially we are vulnerable. one ride at security group took a look at this and they thought some re-thousand systems might be vulnerable with the potential having another 50 times that amount. the is a foundation of internet, the undercarriage. that is where the softness is because all of these upgrades have been built on top of that but it is still vulnerable. you can download something, a patch. the challenge for i.t. and
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system administrators as they need to figure out which are vulnerable and then they can download it. is a very crucial time. you are vulnerable when you are downloading stuff and you could be in a dicey situation. just delete your snapchat account. you'll be fine. >> worried perhaps if you are currently connected? we will discuss further later. hans nichols reporting from berlin. u.s.yder cup hits the against europe beginning today. europe's team has won five of the six previous competitions. will it be able to keep up the winning streak? ear to tell us more about the tournament, caroline hyde. tell us more. we have seen europe doing pretty well in this tournament as of late. >> if you like stats it looks like they are pretty well ahead. they've won the last two in a
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row. europe has more best of the best. they have the four of the top six ranked and they have won more tournaments outside of the ryder cup. 14 tournament have been won by european players. three of the majors have been won by that squad. the u.s. squad, only eight have been one and only one major. what we've got to remind ourselves is that golf is a sport is in a freefall. that's how many people are fearing it. since tiger woods came to the and itout a decade ago became a sexy sport. we have seen participation fall. we are seeing tv ratings go down as well. this has hit businesses. if you look at dick's sporting-goods they had to fire golf pros. adidas is restructuring.
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>> tailor made. >> they have to do something to again, thisetite idea of rivalry between europe and the u.s. is not really getting us to the tv screens. ?> what about social media how much hype is there? roostope is ruling the when it comes to social media and who has the most presence. we have more than one million likes on facebook. we have rory mcilroy mostly to thank for all of that. he has more than half of those facebook likes. times in three more terms of likes. twitter, europe has 2.8 million more followers. where the u.s. is winning is instagram. alsohave fowler who has into his hair at
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the moment. he does not really bother with facebook though. they have one major problem, that tiger woods is not playing. if he was, they would be beating europe. he's the most engaging with 3 million likes on facebook, one million twitter followers. not all conversations are positive about tiger woods. demisean talk about the of golf but it still has its fans. to get into the presidential white house, you become a bit of a golf fanatic. >> maybe it will help you get there. >> discussions with potential sponsors that might be giving you money. he does play with certain members of his white house team. nine of the 14 holidays at
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martha's vineyard he played golf. 38 times he's played this year so says cbs news. that's nothing when you compare to previous presidents. woodrow wilson laid -- played 1200 times during world war i. he played on average 100 times per year, more than three times where obama is at the moment. one area he's giving a thumbs up to his embracing of women. you were in scotland just for the referendum. >> it was not the only big constitutional change taking place. ofwomen can now be members the royal and ancient club. >> they could play there but it was about membership. years they have acquiesced. the institution sets the rules for golf. had 85% vote in favor for women joining as members.
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now we have to lean on two more because there are nine clubs that it goes around. two still do not allow including royal st. george. >> you have to have a lot of time to play golf, don't you? or you multitask. that's why it appeals to those doing business. >> many see cycling is the new camaraderie when it comes to doing business. middle-aged men in lycra. >> i'm not sure i could keep up with a conversation during a cycle ride than i could during the golf course. >> it's a bit more tiring but it is amazing. golf does seem to be for the older generation they need more rory mcilroy's and robbie fowler's. more on the ryder cup. we take a look at the business behind the game coming up next on "countdown." ♪
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>> welcome back to "countdown." .he ryder cup begins today
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let's take a look at the business behind the game joined by the head of the uk's sports .ook thank you so much for coming in. we found out about the pairings, haven't we. what are you hoping for? it was going to be as last time. the fans will get right behind europe especially on home soil, like it was at the celtic manor. the media are right hind it. is a come down to these pairings? is that part of the excitement getting to see who was playing with who? >> exactly. the americans picked the same pairings as they did last time. going out with bubba watson. those two pairings were really strong for the american so we will see a lot overnight. if they can start well, they're
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hoping they did well. on yourdds are still it. >> dear still a favorite seven to 10. -- they are still a favorite. >> do you think this particular ryder cup will help bring ryder cup in the front of everyone's mind and get engaged again? won a majorhave not since 2008 and it was thanks to him we saw a lot of interest in money pouring into the support. tv ratings are down, participation is down. >> with europe versus america, you've got two guys. you've got rory mcilroy whose 12 majors this year. he's got a fantastic brand behind him. the one that is think a lot of youngsters in the u.k. want to aspire to. he's only 25.
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>> he's the tv advertisers dream. >> for america, rickie fowler. >> they are the same age. >> he's a phenomenal talent. charismatic this week. and he has usa etched into his head. they really need character to bring their teams to the front dan lead. lead.o the front and >> they're hoping at their age they can help more younger people getting gauged with golf. his aer woods has lost game and off the field. these two guys off the field they are good and on the field they are really good. >> how does golf stack up into lowering and bets? has its lost its pecking order?
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>> the media gives it such a big profile. guyshe big bettors but the in the grand national might come on the ryder cup because it gives them a little bit of interest. they're going to be wanting the ones in europe to win and they will have bets on it as well. you think the pairing of golf and business stand the test of time? we were discussing whether you could have discussions about business on a bike together, business colleagues, customers. historically, they've been fought on the golf course but now there are so many sports vying for attention. >> golf and business is the dream ticket. it is so strong. 18 holes walking around doing deals. i still think that's the best. >> you are talking to two women here. my mom always played golf.
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i was there at the age of eight or nine having to hit cans at the time. do they need more women? do they need more sponsorship permitting female sports? -- promoting? it only drags in something like not .4%. >> i think what's happened with the latest agreement, the women on the world nature course will give it a big boost after the ryder cup. >> it's about time. russell yershon joining us from titanbet u.k. is bigtland, golf business as regulars and pros alike flocked to play at the over 500courses with 50, more courses per population than anywhere else in the world and big business is still building them. one of those businessmen involved is donald trump.
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can his courses compete with the very best? meant to begolf is tough. this course looks fairly wild. strong wind? no. miserable weather? not today. minutes away from aberdeen, donald trump's two-year-old course is a traditional look on the surface. looking past the sunshine, there are a few other non-stored america. for one, size matters. about 230lly use acres. but this is about 600. high on the agenda especially if you miss the snack carts. >> we've got nine holes on the south side and nine on the north. the guys can come in off the nine holes and they can order some food and then get back to
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it. mountainous sand dunes mean there is not much chance of being bothered by other golfers either. on theeels like you're golf course by iran. we have over 100 guys playing and they will not realize there's another 100 guys playing. >> making the course memorable was key for trump. he's competing with the world players but it's more than just a vanity project. the golf industry in scotland created more than $2 billion in 2011 unlike in the u.s. where the game is in recession. holidaying in scotland to play is increasing. golf tourism is worth $340 million today and by 2020, 500's expected to rise to million dollars. while the green fees are on the steep side, near the five times scotland's average, the course is not exclusive. it relies on those visiting the
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region's best courses be it by tour bus or helicopter. >> over time we are likely to evolve to be something of a hybrid with a membership option, but at the moment, the pay and play aspect is working extremely well and we are working with travel agents across the world and we are seeing the benefit of that. that is too exhausting, they can stay in the trump suite, just a few meters from the course. there's is the option to buy a bit more into the brand donald trump. tom gibson, bloomberg. >> coming up on "countdown," fine dining is not what it used to be as michelin is giving stars to more homegrown types of food, shall we say. more in the newspapers segment next. ♪
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>> welcome back to "countdown." it's newspaper time. let's have a look. in the times, a review. caroline is here and hans nichols there from berlin. fine dining is dead. long live the pub. caroline is a astronomy expert -- gastronomy expert. nobu lost their star.
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that's paisley what this is about. and a number of pubs have been awarded michelin stars. the us is more of a trend. >> gastropubs more than fish and chips. >> that can be gastro. the trevis arms. it is run by someone who won "masterchef." in terms of which countries are britain, i'm sure that's a great improvement from the past. france is still way up there, 597. italy 328. spain only 156. i think these are just the europeans. germany and there at 262. hans, you can gloat. there does seem to be this trend towards pub food.
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we will bring you in here. what do you have for us? the amountizing that of laws i broken in germany, apparently it is illegal to drink on the ubahn, but now two iansn party politic want to make it part of the culture. ubahn gets a little hairy at night and i'm not sure in jet and alcohol legalized is the best idea. it germany. anything goes on the ubahn. >> it's different if they were suggesting it was illegal to be drunk. if it's anything like any other public system, sums better under a little bit of the influence -- some is better. >> how many time have you been on the ubahn -- >> i find it's better not to ask. he may get in trouble. what have you got? >> more golf but these are the
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wag's. of the golf, wag's the two team captain than their wives seemed to have matching outfits. their boots are exactly the same. i don't know if they were told. it's all about once again , feelingeople engaged women are bracing golf as well. interestingly, perhaps you might say he was not always the most pro-euro, a euro skeptic, nigel is saying he is pro-europe. head of the ryder cup he has put out a video with a blue polo shirt and he says he loves europe. food, the excellent transport systems, the golf, the greatest golfers in the world. he's trying to get us all behind the ryder cup. the wag movement. >> some are suggesting it detracts from their ability to
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play the sport. that's a different conversation. caroline and hands, thank you. nike kicks back -- caroline and hans, thanks. more on nike when we come back on this friday morning on "countdown." ♪
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>> global selloff. european, asian, and u.s. equities fall. highlights facing leaders. turbulence continues at air france. the pilot strike continues into its 12th day. and nike's world cup wins. a boost from the foot all tournament. -- a boost from the football tournament. welcome back to "countdown." edwards -- and edwards.
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interestll because of rate hikes from the bank of england and the federal reserve. one point $4 trillion was wiped off the value of global equities this month so far. course forndex is on a 3.1% decline in the month of september. that would be the biggest monthly drop since january. seems as if we are witnessing a bit of a turn in sentiment. index jumpedility 18% in yesterday's trading session. 16% above this year's assets. we are seeing some movement in the markets over the past 24 hours. a whole host of reasons that you this, nohis, -- pin real consensus of one overriding factor. bearish on the chinese economy over the past week. fears that rates may go up in
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the u.s. and u.k. sooner than expected. mark carney, the bank of england governor reminding people yesterday the rate hike decisions are becoming more balance for the u.k. economy. all of that is working its way into the mix. japan's inflation numbers were out overnight. they were a little slow in the estimates, underlining some of cannotllenges, and we forget what is happening in russia. russia is still drawing up plans to seize foreign assets in retaliation for some of the sanctions imposed on that country. plenty of drivers. we will get to whether we are seeing its to essential -- substantial change or something more temporary. corporate news, air france will continue talks with the pilot unions to end a strike that september 15. they are trying to appease pilots. whenus an update, keri,
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the latest of elements. we had two parties in discussion yesterday. >> and it's likely those discussions went late into the evening. yesterday we had ace statement -- a statement from the sky team which represents all of the pilots and sky team, which france's part of the alliance. they back the pilots and the strike continues. it is due to go to the end of the month, but hopefully there will be something coming from these discussions. >> the pilots got pretty much what they wanted at least in of the trans-iberian a europe plan. what are they holding out for for now? >> they're still worried about the project. air france is planning to develop that, and the pilots are very much worried about what it will mean for expanding trans-onvia in france. the size of the airline, the number of flights they have is cap. they are worried if you expand that airline, will the contract
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in terms and conditions for the pilots to work there be different from the air france pilots, and how will that work overall for the contracts. >> strikes aside, we talk about the sharing economy, seems to be working its way into the parts of many of our lives. aviation is not an exception, is it? >> it's not. for the ryder cup, there will be a pop up light for private jets. if you want to share a private jet with a few other people, you can pay 1800 pounds and do, which is significantly cheaper than flying yourself. that is one cheap and fun way to get to the ryder cup, if 1800 pounds is cheap. >> kari, thank you very much for the latest on the aviation sector. was.ure what that picture i don't recommend doing back, playing on the wing of an airplane. a win for nike, the latest numbers from the world cup football tournament, and it
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looks like the winning streak could continue into the next quarter. carolina has the details. all sports doing well for nike? >> the overriding message, first-quarter profit is up, sales is up, almost $8 billion. they have spent big with the world cup. the world cup has helped fuel a lot of this demand, particularly in football merchandise. a material who has done particularly well. ot has doneial bo particularly well. they are ramping up going into the world cup, but 300 million people playing football, one billion people watching the world cup. profits across western europe, particularly well in china, sales up 20%. they are managing to turn things around in china. teams are10 of the 32
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wearing nikes's, and the final winning goal was done by a player wearing a nike shoe. they only recently entered recently, catching up with adidas. they say they are the market leader in nine of the largest football markets. interestingly, it has been a difficult market to be in, golf. >> is that affecting nike in the same way? >> no, they're still doing well. they say they're optimistic, there are challenges in the industry. the only came into the industry 10 years ago, but limited-edition and the combo 2-iron, it was an instant sellout. they have pumped a lot of dollars into this. they also have tiger woods, rory mcilroy, two of the most
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prominent players in terms of social media and engagement. won three straight tournaments, and they also sponsor michelle wie. nike wins because it is also so fashionable. you can get nike hightops. women now in new york in canicular but in the u.k. be seen wearing sporting apparel out shopping. it has become really fashionable. interestingly, talking to nike, they want to start fanning out into running. they have slightly giving away sics, reebok.s nike wants to be seen not just as fashionable but the key running trainer if you want to be an athlete. >> and casual clothing. caroline, thank you very much.
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more on golf as we go through the program. let's talk about apple. earlier today, hans was bringing the latest story about the software flaw in the underpinnings of the internet. apple says it is working on a software update after the flaw has been exposed. apple says operating system , they are working on a software update after the fall was exposed. most osx are not to be affected. they are also saying that os-x is not exposed unless users configure advanced services. we'll look for more details on back, hans reporting on that story today for us. eight minutes past 7:00 in london. if you want to be part of the conversation, get in touch on twitter.
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coming up, more technology. like mary reports earnings today. reportst -- blackberry earnings today. this time, they mean business. we will tell you why, next. ♪
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>> first. bloomberg. time for today's company
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news. russia's government is pushing global internet services to store personal data locally. the draft law would fast-track this week to take effect in january 2015. the new rules mean that providers like google, facebook, and visa will have to rent service from russian providers. apple has released an ios software update that includes improvements and bug fixes for updatews in the ios 8 that was released wednesday. they also defended themselves against complaints the phone could band. and broad media is in talks about ringing games previously available on consoles to sell phones and tablets. the shift will allow developers to tap a broader potential audience of over 1.5 billion users. let's stick with the subject of smart phones. blackberry will release earnings today following the launch of phone, aimed squarely
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at business users. tell us more about the business strategy to get the company back to health. that is the plan. good morning, francisco. that's talk about the passport. you have had your hands on it, showing it around. what has been the response? >> it's not a conventional device, i'll say. screen a 4.5 inch square and it's very different from what we are used to, the rectangular devices from any other vendor. i've been showing the device around. some users, some people really like the form factor because it allows you to see more content on the screen, but some others don't like it as much because it's really big, not conventional, and a keyboard with three lines only needs to be used with the lines on the touch screen. on the other hand, they have
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innovated because they have such a touch enabled physical keyboard which is very interesting compared with any other keyboard, specially those who want to keyboard functions. >> it is clearly aimed at a business audience. some things that business people like to do, for that part of us that are a businessperson, sending e-mail, open pdf documents, word documents, online documents. how will the perform for those kind of tasks? problem, most of those are normal users. we don't have only e-mail or spreadsheets anymore. we have all applications, all things we do with the phone. abouterry needs to think their corporate core users, professionals. on the other hand, they also need to improve the user experience overall. this device has been very well ofeived by those users
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excel, word documents, etc., browsing content. aose users who want to watch movie, for instance, this is not an experience because the square screen does not allow to watch the same way as a normal rectangular device in landscape mode. on the other hand, it is a 30 but thel camera, quality of the photographs is not that good. some of the areas are excellent and they improved quite a lot to target their core users, which i think is a good strategy because that is where their future relies. on the other hand, as an overall user brain their phone to the company, for the i.t. department to connect their phone, this probably won't be there first option. compared with the latest iphone or other devices from other vendors, that is the biggest problem for blackberry at the moment. >> they're up against a trend of
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businesses not providing mobile technology anymore because increasingly businesses are assuming that people will bring their own technology, or perhaps employees are just deciding they would prefer to bring their own. >> it changed a lot with apple and other vendors bringing android phones to the market, with different features. because blackberry was not able to keep the same level of innovation compared with the other devices, users and employees will have to use a blackberry because it was and still is one of the most secure devices in the enterprise market. using other devices for their personal usage. to do all the other things, without doing e-mail or opening xl. they started bringing the iphone and the android handsets to their i.t. department and ask them to connect their devices. this changed quite a lot. where thet a world
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i.t. department decides exclusively what device their employees will have to use. now the employees are bringing their device and asking to wasect, because blackberry not able to provide all the features and other things that we do on the smartphones. >> for those who have not actually seen it, seen the passport up against the competition, gotten their hands on it, remind us where it fits. it's bigger than an iphone, but smaller than a tablet? is it in the phablet. with is a mix of a phablet a smart phone. it is like a mini kindle, similar form factor but much smaller. it's larger than the iphone 6 plus, but for those users with smaller hands, it would be difficult to own. it provides the larger screen, which is also interesting. >> what are you missing?
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peoplee the key apps have gotten used to using on their smartphones they will not be able to find here at all were as good on the passport? >> some of the applications are not yet available for these funds. areas whereey blackberry needed to improve immediately was overall the number of applications. one of the key strategies was to support and drive apps. what like barry did was form a partnership -- what blackberry did was form a partnership with amazon anaren allowing amazon apps on the passport, but not all apps will be available straight away. the clippers will have to adjust the replications to the device. nevertheless, and users will have access to a much wider range of applications compared with the previous blackberry market store. >> in terms of the business as a
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whole, the blackberry business, it obviously has had its problems of falling out of favor because of smart phones, etc. it is now focused very much on the business customers. how a niche is the future for this company? how small a player doesn't have to be? nomad or how big it is coming clearly wants to be profitable -- no matter how big it is, it was to be profitable. is oneenterprise market of the most profitable for any phone maker. it is why we are seeing apple in partnership with ibm to develop specific applications. samsung is launching a security service to lock the enterprise devices. and we're seeing several other vendors trying to access the market because it's much more profitable. but it's much more smaller than the consumer market. blackberry a couple years ago
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looked at the consumer market as one of the options to grow the number of handsets. to attractble end-users. in london, it was common to see teenagers using blackberry, and it was much easier to type. but other applications came well used,ecame very and that what is what drove users to use the other device. they were able to use the same applications on their device. >> it does not bend? >> it is not bend, for sure. nimo joining usro from idc. a newly discovered computer flaw threatens governments and companies, but apple says that most of its os-x users are not vulnerable. stay with us for more on the shellshocked vulnerability.
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>> welcome back to "countdown." the internet has been vulnerable to a bug for 20 years and governments are starting to pay attention. department of security is warning about the shellshocked bug. hans nichols joins us about the threat. who is this shellshock and who is vulnerable? >> apple has come out and said
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users of the os-x operating system, most users are not vulnerable. only vulnerable if they have reconfigured their system preferences. it gives an indication of how big a deal is if apple is starting to respond. shellshock attacks any operating system that uses bash. that is the open-source code in use since the 1980's on unix systems. on a scale of one to 10 of threat level and exploit ability, from the government, this is a 10. this is a remarkable warning. the u.s. government said they are aware of a bash for her ability involving unix operating systems such as linux and mac os-x. exploitation of this folder remote may allow attackers to execute code on the
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affected system. that is a clear message to i.t. and system administration all across the country, all across the world, really, to start downloading a patch. there is a fix for this. you just have to download it and get it installed on the system after you figure out which systems are vulnerable. anna? >> put this in context. you have done that for a large extent, but we talked previously about the heartbleed bug, a number of bugs. how does this relate to heartbleed? heartbleed did is basically tricked a user. an individual user into changing the password. shellshock goes through the back door, more primitive technology, using something quite permitted through the back door and gets access to the entire system. that means the line of defense against heartbleed was in some way the user being smart, not changing your password. , it is systemk
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administrators that need to be doing the updating and policing. hans nichols, thank you very much, reporting from berlin. coming up, obama urges world leaders to do more to tackle ebola. comments fromtest the world health organization coming up after the break. ♪
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>> welcome back to "countdown." i'm anna edwards. the dollar-yen, other factors. cpi data from japan overnight. food, upuding fresh 3.1%, a touch below estimates. if you strip out the tax 1.1%,ts, it is + underlining the challenges of the government of the central bank of japan. also bear in mind, other news,
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affecting japanese currency, there are signs progress could be made on the japanese pension fund reform, just one of many reforms they have launched at the japanese economy. they are trying to reform the pension so they can invest in a broader suite of assets, including overseas assets. some progress has been made on that and the yen is falling towards a six year low against the dollar, the overriding theme of the last 24 hours. the yen down against 14 of 16 major currencies. these are the bloomberg top headlines at this hour -- british airstrikes against the islamic state may start within days according to a government official. the house of commons approved military action in an emergency vote. or minister david cameron is expected to tell parliament the islamic state poses a direct threat to the united kingdom. kurdish fighters are battling an
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advance by the islamic state in northern syria. tens of thousands of kurds have arty flight to turkey, others are heading to join the fight. this comes following airstrikes by the united states, saudi arabia, and the united arab arab merits -- united arab emirates. ukrainian president petro poroshenko says the worst of the war with pro-russian separatists is over. ukraine is now focused on the elections, securing gas supplies, and preparing a bid for you membership. petro poroshenko spoke after a clash at an airport. u.s. president barack obama says ebola is a global threat. speaking at the u n general assembly in new york, he said countries need to step up the effort to combat the virus that has killed nearly 3000 people. by aore, we are joined spokesperson for the world health organization come who joins us from guinea, a country
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hard-hit by the outbreak. 44 countries are meeting to discuss the issue in washington today. what would be the best message you want to give, what message do you want them to take away? >> thank you very much. consensusere is now that -- [inaudible] >> i think we have a bit of a problem with the line to guinea, from the worldk health organization. we will see if we can reestablish that connection. we are trying to find the latest extent of the virus and the per cautions being taken. sticking with the subject of ebola, the world bank has been commenting on the economic costs. let's talk to the senior credit officer at moody's, sarah, who joins us on set. thank you for talking to us.
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nothing should detract from the human tragedy of this virus, but let's talk about the economic effect that could compound the strategy. with the worldh bank has said about the catastrophic effects that ebola could have? >> in the countries that are most effective right now, the effects are catastrophic. there are really two ways in which the economic effects could be felt. it is either through those who are directly affected, those who are infected or who actually passed away from the disease, but also academic research shows if you look at things like sars much morethis is important -- the reaction function of the government's not infected with the disease i could have a significant impact on the economy as well. >> how does that work? because governments are understandably focused on tackling this and not dealing with other issues? >> not just that. it's also the fact that people's
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behavior changes. less willing to go up to public places. you also have things like transportation networks and borders closed. all of those things, of course, have an economic impact on countries where the actual toll in terms of the human cost may not be as large. >> which countries are we talking about? liberia is one of the worst affected and guinea. where you focused? the threet rate countries most rectally affected by ebola. a,at would be guinea, liber and sierra leone. however, we keep tabs on what is happening there. thethose countries, economic impact is significant. anything about sovereigns, generally we think about the economic strength of a country, its institutions, government finance, assess ability, and providing rest. the big game changer that has not happened yet, the world
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health organization and a report yesterday said nobody expected things to go as well as it has. nigeria. >> how confident are the world health organization and are you in the data coming from nigeria? we had positive data about the country's ability to cope with this, but other countries have been struck. >> if you look at what the who said, they have said even though the institutions of nigeria are not particularly strong, it's surprising how some of the very quick response by the government in terms of trying to contain the problem has worked. i believe the numbers, there have been 15 people and legos and 14 others too were effective. those are manageable numbers. even if you think there could be underreporting, that is still very manageable. >> and the effect on the nigerian economy of this took hold in nigeria in a more significant way, the oil sector of course would be vulnerable. we were talking about the way
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borders are closed. people don't to socialize in the same way. i imagine the oil sector, if borders are closed, that creates difficulties doing business. ispotentially, some oil transported through pipelines, but that does not necessarily create the same problems, but its import to remember the scale of nigeria. billion economy, the 12 largest oil producer in the world. it would affect the patriot populations who support the oil sector as well as the indigenous population. you don't necessarily need lots and lots of people who are infected. it is really the reaction of those or not necessarily infected can also have an economic impact. >> if this is to weigh on any other part of the world, is europe going to be part of the global economy that's vulnerable to being hurt by this? there is still no real
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indication that would be the case. however, if you think about her expectation linkage, -- if you think about transportation linkage, travel between countries, it would be affected because the ties with africa are closer. having said that, it depends on the vector of the disease. ebola is not spread through the air. if the virus were to mutate, that could increase the susceptibility of other countries for it to spread. >> sarah carlson, senior credit officer at moody's, thank you very much. i think we have the world health organization tarik. thank you for joining us. i was asking before, if there were one message to give to the 44 countries that will be discussing ebola in washington today, what would that message be? >> thank you very much, and i apologize for the bad line. we have seen in the past couple
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weeks a bigger involvement of our member states, of you in agencies,- of u.n. and we wanted to continue. we are behind the disease. we are seeing increasing numbers on a daily basis. we have people who are infected and have nowhere to go. we really need to show solidarity with those affected countries and try to get as much as we can in terms of supplies come in terms of experts come in terms of logistics so we can really try to help those who need it right now. health systems, the infrastructure, where they found most wanting? where are the biggest priority issues for you? >> the priority issue is really to have enough beds. we're talking mostly about liberia and sierra leone, which
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are emerging from a very weak health system with a limited number of health workers. now there are even less health workers because a number of them have been infected. they don't have enough equipment, they are not trained. we really need to come in, build treatment centers, train local health workers, to equip them to have enough of them so they can do reasonable shifts. ,ut this all requires logistics and we are welcoming the involvement and commitment of a number of countries stepping up their response. just treating the patients is not enough. it's not going to stop the disease. we need a surveillance system. we need to be able to track people who are in close contact, make sure they do not show symptoms. takesw what to do, but it a lot of effort because we have to do it in multiple locations. >> what about vaccines?
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glaxosmithkline, johnson and johnson are working on experimental vaccines which will be tested in january in africa. what do you need on that front? >> this is something we have to look at. right number of internationals we are looking closely at, not only vaccines but also a treatment, antiviral treatment. this is something to be looked at. there are two candidate vaccines being tested in humans. we hope there will be some preliminary results in november. but again, we have to ensure basic safety. so far, none of the treatment has been tested in humans. need to mature we don't do more harm. we have to pursue that road, intervention, but in the meantime we need to go for traditional containment efforts because people are suffering right now. jasarevic, joining us
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from the world health organization. coming up, we will be talking the business behind the game. ♪
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>> first. bloomberg. >> welcome back to "countdown." i'm anna edwards. the time in london is 7:44. the ryder cup that pits the u.s. against europe begins today in scotland. fiveuropean team has won of the six previous competitions. will they be up to keep up that winning streak? here is caroline hyde. we were speaking to somebody about this earlier. it seems the money is on but there has been a late in the day flutter towards the u.s. >> they have played together before, but i have lost the last two straight matches. five out of six have been won by europe. if you're looking at who has the best team, look at the stats, it seems europe is ahead out of the
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top six players in the world on the european side , they havefour of them. if you look at tournaments won, all the players on the ryder cup side have won 14, three majors, two by rory mcilroy. compare that to just 8 won by the u.s. >> and they are without tiger woods, which could affect him in terms of the game. it also affects them in social media? >> his back problem also means they do not have nearly the reach of social media. tiger woods is the most embraced player on social media. he has a phenomenal amount of likes on facebook, more than one million twitter followers. moment, look at the europe versus u.s., who was playing in the ryder cup, europe comes out tops in social media. facebook has more than one
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million likes, mostly because of about halfy, who has of those. that's about three times what the u.s. has. instagram, the u.s. is doing well. subtle. maybe he is a fan. youthful, getting social media engagement. hopefully getting more young people involved. >> those other kinds of names, the age group many of the sponsors are keen to put their money behind. >> a lot of the sponsors tend to be rolex and other luxury makers, but it's insisting about -- but it's interesting about getting asia engaged. golf has been in a bit of a freefall. since tiger woods came to fame a
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decade ago, he has not won a major since 2008. the fact he is a black player, he was youthful, he was cool, he made it a fun game to get into, money came in with sponsorship. nike among them piling in cash. a little bit of a freefall. the financial crisis did not help, but it's also less popular in terms of tv ratings, courses are closing, less money flowing in. they are trying to engage. they're trying to get women play. royal and ancient golf club -- >> were it not for the fact the referendum on scottish independence were taking place. didou wonder whether they it to hide the fact, but 85% voted that women should never become members. you can always play, but now they can become members of the course. get women involved and get youth involved. asia and the middle class are still piling in. >> caroline, thank you very
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much. after the break, we will look at what is catching tbhe eyes of traders ahead of friday's trading day. stay with us. ♪ >> welcome back to "countdown."
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i'm anna edwards.
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it's friday morning, a little less than 10 minutes to go before the start of the last trading day of the week. we are joined by brenda calais. thanks for spending friday morning with us. let's talk about the overall offet, $1.4 trillion wiped global shares this month. not a great month. >> this time last year was not much better. we had seen a big decline in global equities last september. a lot of things are conspiring, retaliation from russia, the s&p 500. a large decline in apple and of course here at the u.k., we have seen softness as well, particularly owing to possible growth or recent china. washe vix volatility index up 18% yesterday, 16% above this year's average. beenal bankers have calling for more volatility, they want more of a two-way
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market, and they seem to be getting what they asked for. certainly fears about what central banks may do next is one of the drivers. >> it is. everybody wants volatility, but they want to be able to predict it and nobody can. you get times of high volatility and low volatility. they may have been calling for it. i'm not sure anybody was prepared for yesterday's equity markets. >> stocks in specific. a fascinating story, one of my colleagues, an american colleague, he thinks we are accessed in britain with supermarkets, which may be true. a lot of talk about the state of tesco. could they be a buyout target? >> there are rumors. mike ashley of goldman sachs, it has had a big effect. they have done the same thing. >> why is he doing those? >> i honestly don't know. i think it is a certain -- maybe
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i will take a punt and hedges well. at the time, brokers, three of them are buy, most of them are hold, but are still sells. the takeover scenario and the rumor that morrison could take over, they are down 30% year to date as well. not exactly the cash flow to get involved. i think any sort of catching a falling knife has to be watched out for. >> a number of analysts, a couple of them have said i don't like these things, but i might sit on the fence because there are so many unknowns. the increasing realization everybody is getting the finance chief has not been present at the company. >> since april, yeah. >> a staggering revelation. it's talk about bae. petro poroshenko in the ukraine suggesting we may be through the worst of the violence, but tension in the middle east could
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play into the strength? >> certainly. the decision about joining the airstrikes in syria, clearly this is something defense spending will have to increase it comes to pass. the u.s. is expected to see flat spending over the next couple years. that is the expectation. i feel as geopolitical tensions ramped up, we could see bigger defense spending. systems could benefit from that, particularly the u.s. with 47% of the business. >> commodities have been falling from a warning sign? toi think it is, the link china, certainly, and it's been falling for a while. i think the markets are waking actuallyling prices spell that we expect lower growth from china. veryenda kelly, thank you much for joining us, chief market strategist at ig.
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just a few minutes away from the start of the start of equity trading. the ftse 100 looking fairly flat. i will leave you with a capable hands of the team that bring you "on the move." have a good weekend. i will see you again on monday. ♪
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>> welcome to "on the move to how i am jonathan ferro here in the city of london. we are just minutes away from the start of european trading. futures right now little changed through the morning. plenty to talk about this friday. this is what we will be focusing on in the hour. take a dive in the u.s. 296 billion dollars wiped off the value of the s&p 500. the nasdaq finished the day almost 2% lower. what is behind the selloff? that is the first question. japanese inflation slips.
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consumer prices rise from a year earlier. what the eurozone would love to have some of that. it was less than the estimate. according to the bank of japan, if you strip out the sales tax hike, inflation was just 1.1%. is there a lesson for europe? that is the second big question this morning. look at futures right now. ftse 100 down by 0.1%. the dax down by 0.1%. the losses have been piling up. let's check in with caroline hyde at the touchscreen. >> let's have a look at how the equities are moving. currently, we are closed. we are basically opening just slightly higher on the france numbers. italy remains closed. ftse is trading pretty flat. the caution of yesterday seems to be easing. what a selloff.


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