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tv   Countdown  Bloomberg  November 4, 2014 1:00am-3:01am EST

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>> asia stocks surge on japanese stimulus. it rises above 17,000 for the first time in seven years. >> also set for bigger bond buying, mario draghi says the scope for asset securities is rather large as the ecb operates as the bank watchdog. >> we are ready to take responsibility for the euro banks. >> jpmorgan faces a criminal investigation into currency trading. the largest u.s. bank says it might need as much as a $5.9 billion to cover losses. >> farewell feifa. emirates drops its sponsorship
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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 didn't 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
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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 two-day 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
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japanese pension fund is one of the world's 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 --
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anticipation for the allocation is pushing up stocks as well. once the bonds completes its strategy shift, it will own about a 6% of japan's 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.
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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 foreign-exchange 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. it's like we are in the endgame in putting quantum's 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
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adjusted the third-quarter 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
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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 low-key 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.
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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
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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 top-tier sponsorship of fifa as a result of these corruption allegations. it is not unreasonable to assume that the statement from 2011 and yesterday's 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
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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 coca-cola, 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 world's 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.
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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. >> today's 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. ♪
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>> welcome back. to the pollsead today for the midterm election. president obama's 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?
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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
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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. expense't 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
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obama fast-track 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.
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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 bank's 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 asset-backed 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? >> there's the question of scope and scale. it looks a key was responding to the question of are you buying enough different instrument so
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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 sme-backed 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.
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qe1 and qe2ave -- and open-ended 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 they're going to try to boost as much as possible but they themselves will have to see how far they get in the early
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stages before they can give us a projection of where they're going to end up in two years. >> thank you. stay with us. more analysis when we come back. stay with us. ♪
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>> welcome back. us.guests stayed with
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let's talk about japan. it is quite stunning, isn't 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. you're not going to get much surprise if the ecb does
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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
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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 long-term 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.
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electric dreams. earnings are breaking next. ♪
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>> 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.
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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. >> let's 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.
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a position they have held for the last nine years. let's 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
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into second place. we will see whether or not there's 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. we'll get more on the story as it develops throughout the morning. >> europe's 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
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this event is norma's. 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 far-flung 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.
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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 bare-bones 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
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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, ipo's, we're 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
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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, creating wonderful photo experiences and longform teachers all about the things people- experience. , once they realize they can create original content, they actually become very good with it. we work with tourist boards from australia to illinois.
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people really enjoy it. >> what kind of content do people want? there's the trip advisor or do a virgin atlantic limo service? which works better in terms of getting repeated out there? >> it depends on what your objective is. ultimately people enjoy content they can identify with. theably leaning more toward first of the two. looking at real people experiences and what they have seen and heard. >> how much of your business is upset because companies have paid you to put it there and how much is up there because it has been written by your news teams, you employ a lot of journalists and videos and creators. what is the balance in your
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business model? >> we are focused on big and meaningful business. we have been investing heavily in original content creation. we have over 200 journalists worldwide and euros from new tok to london to sydney delhi. the way we monetize this through content, we have a team of france to create content. create content. >> i clicked on the site, i had to look at some of the funny bits. celebrities. ted cruz, grendel party nomination. if you look at the lineup, it is hard hitting news. there is a hard edge to buzz
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feed as well. >> definitely. onstarted -- we focus entertainment and things that would have massive reach. , 12 cats largest appointed in you. -- that are disappointed in you. people did not just want to look at the fun stuff. wave -- a ways a that we could create original good qualityld be content. >> do you find that people come for the social and stay for the news or do they come for the social -- news and stay for the social? >> entertainment content has a higher footprint than news reporting but you have to look for comparison point and this might sound very [inaudible]
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hugebc has always had a entertainment content. on top of that they have a layer of world-class news and those are our ambitions. we wanted to do lots of entertainment but world-class news on top. >> how important is data? help them with their data to understand how to create content that works? >> absolutely. we took [inaudible] tech media as a company. we work with 700 people, we have over 100 data scientists and engineers that look at what people are sharing and why. >> thank you for joining us. we will see you again sometime in the future. will hayward, buzz feed vice president for europe.
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europeanad of the breakive after with caroline hyde. ♪
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>> welcome back. let's turn back to technology. let's head to dublin where caroline hyde is live from the web summit. >> thank you. i have a great guest. we are talking about the ipo seen in europe and america. europe and america. give us a sense of how hot 2014 has been. you have 116 ipo's, 25 in tech. is that sustainable? >> the overall market is a bit more shaky than it has been before but in terms of the pipeline, it is looking to be very strong. >> the shakiness has crept in because of valuations we saw. well after theas day listings. people reassessing what
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companies should be coming out and valuations? >> it is fantastic to see these companies come to the market first of all. it will be a great [inaudible] on judginge careful them on the day of their ipo. we should judge some overtime and that is where the public market is. there is other factors. think investors in the takenity -- they want to art over time and the only wasted art is if they go public area >> where do they want to take part? buthad a huge initial share the tech firm went to the u.s. to sell shares. was it the liquidity they wanted, was it the marketing factor? >> there is many dimensions create week work closely we
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before they start doing their ipo. there are many dimensions in the market. if you take a company looking to list their looking for additional liquidity. it is important for them to increase visibility by being listed in the u.s.. it is still an important market from a business commercial point of view and having that this ability is an additional asset for these companies to grow their business model. >> you're used to seeing the european growth companies that assessinghat might be initial share sales. would you say look at america or do you think we will come to a point where europe will come of age and these companies will want to sell shares in this region? >> i am responsible for the nordic exchanges where i run the listing as well so i would like to see many of these companies
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list in nordic markets and many are considering this. is important to see is a lot of the key promoters -- that has been lowered. and each company has to look into its own business model and can find the best support over time the u.s. is a great market. than 600 techore companies on its exchange. be measured with your peers and grow with your peers the u.s. is a great market to access. >> what do you say to potential companies listing when they say you have 75% of the tech companies on nasdaq at why did they not choose you? have you overcome the reputational issues? >> everybody can make mistakes and we do not judge them.
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alibaba and twitter are fantastic companies. and theroud of those momentum we have had. we have 160 listings only this year. our perspective it is having that initial dialogue we can show that we can find the right model. and that is where we differentiate ourselves. acquisition and the communication space and we are the leading providers in that space and that is not only to create a different business model but to make sure that we have the right tools and service model to make sure we support the companies to make that transition from. a private to the public company. that should not be underestimated. we have the liquidity and the visibility we can provide. we have a great dialogue and pipeline of companies so i think
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alibaba i'm a twitter, great companies but we have many more with jd market and so on. >> you have the best year since 2000 and terms of listing. you are opening the nasdaq fell from dublin. give our viewers a sense of what is going on in europe, what is the sentiment like, what will you be talking about with the founder and the prime minister of ireland? >> if you look back at the year 2000 when europe was suffering a bit, you have to keep in mind that 5% of the world was connected to the internet in 2000. that world is changed. everybody is going up there model around this future, this tech digital aspect. it has grown from 400 participants to 20,000. many of our prospects are here and many of our listed companies are here. you have many of the listed
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companies having great presents with amazon, facebook, google and so on. from that perspective it is fantastic to be here and fantastic to see the european seat is growing. many of the companies do not come from the valley but they come from outside. is a buzzing scene and the global markets are reflecting that. it does not matter where you list. and from that perspective the u.s. is strong. it is important to build that relationship and show his ability and credibility that they have built and make sure we support that. >> wonderful speaking to you. thank you. from nasdaq. handing things over to you in london with us in dublin. >> thank you very much.
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6:31 a.m. in london. >> this will not be the only place to catch great shakespeare plays. we will tell you where and you can see the iconic plays in the newspaper section. that is next. ♪
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>> welcome back. point $3set to plan 63
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billion worth for infrastructure spending. we were asking what the -- what that would mean in terms of stimulus for the economy. let's talk about what is in the newspapers. where should we start? is back and i am not talking about back from the dead. there is an exhibition that is .oming to the o2 arena everything from graceland, the suits he wore and various things and replicas of the inside of graceland. have you been to graceland? >> i have. very lovingr but and very 1970's. everything you imagine in terms of animal prints on the walls.
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>> there is an insurance company that will give their clients discounts if they put a gps their dog andexercise. the dog gets the treat if the dog gets walked in awful lot. i had no idea that the insurance premium is on average 246 quit -- quid. addition.ve in pet obesity is a problem. >> and global shakespeare on demand. this is the globe theater. it is going to be the first to offer on demand performances so
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you can go to the internet and pay to watch their shows. >> we are back in a couple of minutes. "countdown" continues. ♪
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>> asia stocks surge on japanese stimulus. rising above 75 and for the first time in seven years. said the scope for asset securities is large. >> where taking responsibility for the single supervision of european banks. >> bmw>>'s profit rises for the maker of luxury cars. the governing body in the midst of allegations of
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corruption. >> a very good day to you. is 7 a.m. in london. we begin with some earnings numbers. imperial tobacco giving us their full-year adjusted operating profit. , attach shy of estimates of 3.0 5 billion. that was the estimate from analysts and the focus here is going to be on what they have to say about pricing, what they have to say about where their sales have been hit by geopolitical tensions. whether that was russia or the middle east, how that would impact on the numbers. to give you a few of the other theers they are saying that
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is 148.5. they're recommending a final dividend with 89.3 pence and that is in line with what the and the was, 89.24 adjusted number attach shy of expectations. 203.4 against an estimate of 204.6. this is the make it -- maker of davidoff. business are trying to do a merger. salesal says they expect to decline. this is a stock that has done quite nicely. the sector up by 10% your today. we had some british american
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tobacco. the numbers were lower because of concerns on price. pricing will be one of the things we will discuss and i will speak to the ceo of imperial later on this morning and we will try to bring you that interview later on in for grooming. -- programming. the insuranceg in business. what we want to see is the impact on the annuities business. the chancellor of the x check or said you will not be forced by an annuity when you go into retirement. saying that annuity assets are 39 point 9 billion pounds. cash is rising for them and they have got their annuity.
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there.eaking news and net income of 1.61 ilion -- billion euros. beating estimates of 1.53 billion euros. are also seeing, there is another deal. 773.6ing spirit pub for million pounds. at 25ee one-off costs million pounds. they offer values at 773.6. spirit is an operator of pops. cranking -- greene king also. you had a little bit of tobacco and i had a little bit
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of insurance. we are kicking things off with nigel wilson on the numbers. stay tuned for that. >> we will also be speaking as i said to the bus of imperial tobacco so stay tuned throughout programming this morning. japanese shares soared on hopes that central-bank stimulus will boost earnings. we will get to hong kong in just a moment. reason this is important is the bank of japan unleashed that big boost to stimulus on friday. the markets were closed on ofday so we saw a bit reaction on friday. markets are reacting today. >> the nikkei was up two point 73%. that is the highest since 2007 and it comes down to this. a lot of good news, they had a little bit of quantitative easing. we saw that rush of money but it is the rebalancing. what the japanese are saying, their pension fund will up the amount of stocks they can buy and it will raise the amount of
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domestic stocks they will buy. for equityble whammy markets. the nikkei was up 2.3 7%. equity futures in europe this morning showing a little bit lower. seven points lower in london on european equity futures at the moment. the dax is trading nine points lower. let's cross the pond. >> europe's largest tech conference opens in london -- dublin. biggest investors and companies from across the world. caroline hyde is ringing us a host of interviews. give us a sense of the scale of this fast-growing event. >> you call it exponential. 404 years ago, 20,000 expected to descend upon these buildings. this is the calm before the storm. weary heads few ew
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lifting their heads. of activity. you have 20,000 ascending from 86 countries. people flying in all over from silicon valley and various parts of europe. dublin airport was chaos as everyone was flying in. asing a nice used to ireland an economy. to dublin it will be ringing in 100 million euros for the next two to three days while the conference is going on. it is phenomenal. you have the a list or set of tech coming over and the likes uppeter teel who helped set paypal and the leaders of oculus coming over and vip parties later tonight. there is one held by twitter. it is happening here today. longoria is here, lily
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well.he model is here as the excitement about what share sales are happening and who will be pitching. upse is the new start coming to flog their wares, to grab some funding from saw the big investors. -- as some of the big investors. some ofexciting and the most stylish times. forbes has its style file. it recommends what you should and should not be wearing if you are attendee or a speaker. you have to be wearing something a little bit bright. always amazes me that for a sector that is so useful and fast and cool and yet we have to talk about tax when it comes to technology. how much of the conversation will the around that?
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-- be around that? corporateet on to tax. that is why ireland has become a hub. it has an entrepreneurial spirit. it is home to some of the biggest leaders of tech. the american giants. google has offices here. facebook has been coming over. andonly paid 12.5% tax there is a little-known thing. now become much more popular because of apple's minimal tax rates. it is called the double irish. it is a type of way you reduce your corporate tax rate. you can manage to pay as little as 2%. that is what puts apple in the eye of the storm create you have the oecd and u.s. regulators analyzing how on earth u.s. companies are managing to reduce their tax so much by being in ireland. that little loophole that came under some much speculation,
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such an eye from their regulators has now been closed. ireland says in the next six years if you are using it you're not allowed to and no new company is allowed to come to ireland to use this double irish. instead they are still making it very attractive to come over here and work with an intellectual property. they have a special way of reducing taxes if you are an ip. and promising to remain one of the lowest tax rates. no wonder facebook and twitter is saying instead of scaling back their increasing their workforce here in scaling up the size of their offices. facebook announcing they will double to the size of 1000 employees. there seems to be a bit of a hub not only for conferences but or the big players intact. back to you. >> thank you. if you are going to those parties lease tell us the stories afterwards. caroline hyde. past seven.
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what boosted the number. profits beat estimates but how will the company fair in the electric car rates against their rival, mercedes? hans nichols joins us with a breakdown of the numbers and the inside story. rex let's do the numbers first. -- the estimates are more than 200 million they had in additional profits. billione in at 19.6 versus an estimate of 19.3. 300 million north of estimates and crucially on their profit margins. they came in at 9.4 percent versus an estimate of 9%. this is a company that has high margins and is apparently rolling off the money off there are simply line but we do want to talk electric. later this month in europe, the b class will be available.
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here is what mercedes is doing differently on the electric front. they are swapping a tesla engine , tesla battery in underneath the hood of the mercedes. where bmw is going on a radically different approach building that i3. we have two contrasting styles. a car that is identifiable as electrical vehicle which is the bmw and the mercedes which you cannot really tell. the question is, are drivers are consumers going to want to signal to other drivers they have gone electric month that they have a greener vehicle? if signaling is important, bmw may have the edge. if it comes down to auto versus auto it is more of a fair game. one thing that should be said, bmw sunk more costs into their program. mercedes say they can swap things out on their assembly line and it is maybe more cost efficient if demand does not take off. i know -- i suspect you are more manus. w guy -- bmw guy,
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care will leave the conversation there. the biggest manager of pensions and the u.k. reporting their third-quarter earnings. we will speak to the person in charge. nigel wilson joins us after the break. stay with us. ♪
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>> welcome back. manager ofggest pension assets reported their results today. the legal and general seo, nigel wilson joins us. growth in all divisions, net cash of 12%. you are doing quite nicely. talk us through the business and does this mean that the dividend will rise for shareholders? the bottom line is sure holds and -- shareholders in dividends create >> we have consistent results once again. pleasing across all five divisions. >> tell us about the outlook for the market.
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surprise. us by shock toed in a big the market. wet is about what expected. be 5% or 10% of the size. people will take a lot of cash. taking simple cash drawdown plans and we will be there for our customers delivering those plans in march and april next year. >> you went straight back to the office after this announcement came out. it is all about bulk pensions. let's get out there and sell. your bulk side has stormed ahead. , everyone is in
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the same space income heating for the bulk contracts. what kind of margins do you earn? >> these are very large global deals. or four keyree competitors across the world. we are expecting to double the size of the business. billion. track to do 8 we are confident in our ability to compete well. we see no margin differential in 2014. >> you have been very outspoken on any mention of a mansion tax. that kidnd of tax. if people weren't counting on futureouses as their pensions, how did you feel the need to speak out on this topic? small tax is not
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a good idea. it is a huge distraction. the real issue is around the u.k.. productivity is not growing. the deficit is over 100 billion and it is distracting to have a mansion tax debate which is all about london. >> if that is a distraction, then for your business, it is where rates go. doing a goodis job or -- >> mark has a difficult job to do. he gives the confidence to the market. he has a vast amount of knowledge about what is going on . it will be for longer. you are seeing what is happening in japan and what is happening
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in europe. interest rates are very low and they will continue to be low. there is lots of uncertainty, lots of risks around the world. there is no one trying to drive interest rates upwards. the ecb could follow suit, some say later this year into next. to write agoing summary so far of what quantitative easing has done, are you a believer, would it be worth the ride? >> it is definitely worth the ride. america got ahead of the game. the americans responded much more effectively and more dynamically. they have the deficit down to a much lower level. economic growth is much more resilient. they sorted out their banks much quicker. everyone else has been slower in comparison to the americans. >> the sharpest turnaround in
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its fiscal position. fix that is a monumental move. perhaps that is -- when you look at the dispute between angela merkel and cameron and rick -- regards to the position within europe, that is politics at play. do you think markets understand the consequences of what cameron is doing? >> we have too much political risk at the moment and that is causing structural underinvestment in the u.k. which is slowing down that cannot make rose. able to gethas been its deficit down as it is inting better wage growth the united states and better tax receipts. ofhas done a better job controlling its expenditure.
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what can we do to reduce uncertainty and get more investment in the u.k. and create real jobs, higher paying jobs in the u.k.? >> thank you for joining us. is set to report its first set of results since going public. we have a preview after the break. ♪
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>> six weeks from completing the world's largest ipo, alibaba will post earnings later today. here with a preview is ryan chilcote. deliver? they >> heavy lifting first. earnings up before the open. a conference call at 12:30 p.m. london time. we will be talking to the vice chairman so watch bloomberg television. big expectations rematch for every metric. withue profit forecast that single state coming up on tuesday. we have the massive e-commerce event. when all providers did -- extraordinary day tuesday of next week. there is the shift to mobile. this isunder was saying
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their first earnings. where theyinterested get to set the tone. does he joined the call question mark member when he had the investor call, he did not bother to show up. >> e has been in holiday recently. >> that is a big thing. boxes notset top unlike amazon. they want to stream and stream to mobile devices and they want to be that media distributor. >> there is massive market caps
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on everyone wanted to see them. out for thosek numbers. we will talk about ebola and africa after the break.
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>> welcome back. it is 7:30 a.m. in london. how are the traders looking at the present foreign exchange? who does not want to be long? >> payroll numbers are coming out. if you can imagine, that is how close we are to the highs of the dollar in 2009. i like what they said this morning. pimco is actively overweight the dollar.
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technicalat we call indicators or stochastics show the dollar might be overbought too many people too long. and it is slightly overboard. >> the dollar coming off its high and the aussie dollar m a 15 months in a row. the data coming in. almost at the lows of 2014. the governor saying the value of this currency still above its fundamental value. it will take some time. it was estimated to come in at 6.1% so the aussie dollar is getting a little bit of a flurry on the upside. those are your ethics checks. showing fee for --
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fifa the red card. the airline is the first sponsor away after allegations of corruption's emerged in fifa. include sony and visa and coca-cola. the new chief of britain's electronic spying agency accused the companies of being choice for terror groups. and tech companies are in denial about the misuse of services. first groupe is the whose emirates have grown up on the internet. and insisting that the review of recent health check results was
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rigorous and credible. the european -- showing she is now taking on responsibility for euro area banks. >> the first year has been one of the most challenging. one of the main reasons why we are [inaudible] it's because of the successful completion of the assessment. treatnce has accepted to near paris.patient the yuan employee was working to contain the epidemic in sierra leone. the same hospital treated another patient who survived ebola. we met with the doctor overseeing the treatment. ask where in the isolation area. it is this part here.
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ring the excess -- and the access chamber there is less pressure. this is where the staff puts on a special medical suit. two people help address one another. you knew never -- you never go in alone. in a medical and firemen, biological fluids are high risk. -- an environment, biological fluids are high risk. we check the health of the medical staff every day in case there are symptoms. room and you go out a different door. you never go backwards. the contamination of some nurses
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in europe is often due to a high rate of patient emissions. medical facilities are under pressure. musical score. i coordinate the ensemble. there is orchestration said there are no useless moves. there should not be too few or too many. this is why we need to train. there is no room for improvisation when you receive a very contagious patient. seenurism numbers have numbers plunged. kenya is combating [inaudible] great to have you with us.
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played that piece on france and how those images that go out to the world about ebola, it is something that your country is having to do with. you do not have a bowl in kenya but there is this perception that africa is one great epidemic is this transferable. you have an emergency meeting of the cabinet. kenyare you doing within to deal with ebola? >> thank you for having me the -- here this morning. something-- that is that people do not understand about africa. from west so far
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africa. and so i think we need to keep educating the public. kenya is ready. it has put all the measures in to ensure that -- this is rising all over the world. this has happened in the u.s.. it is an international problem. we have to look at it as a global problem. >> i thought about this interview. clear kenyamake it is ready but tourism is under pressure within your country. and i know that the accusations
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have been made that certain western governments are revising people not to travel and they butmaking your job hard reading about kenya, the issues, nairobi andn mombasa. these are difficult public images to overcome. in kenya.isks >> yes. -- this is anout
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international problem. incidents in kenya. we are managing it. -- we have international partners who are with us to do with this issue. a lot of it is -- but let me tell you the good news. . what does that tell you? we have this problem and the rest of the world says life must go on. >> terrorism will not stop you from leading a normal life. me about where the good
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news is. you have got a huge number of skills yourself in finance and health and a variety of areas. what is going on, tommy where it is happening. >> kenya is well-positioned as an entry point into east africa. managed to have a community that works for a well. africa is rising as you know. [inaudible] the interest in manufacturing sector, the interest -- even in tourism. siteis a very interesting that the world needs to know. >> most people genuinely know that tourism is part of the business. it is those -- last year it was $1.1 billion in terms of its participation in the economy. where can we expect it in 2015 how you are
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rebalancing because there is a threat to tourism revenue. are you looking beyond traditional markets, are you looking to china, are you looking to russia? tell me about your strategy. how you are rebalancing because there is a threat to tourism revenue. are you looking beyond traditional markets, are you looking to china, are you looking to russia? tell me about your strategy. kenya we have our beaches. we are tackling the situation together again with our international partners create what we are doing is we had -- we are positioning ourselves as a business hub. we are building the biggest international conference center in africa. so that we can put these interests into investment. it is coming off so well. >> you are off to the world travel event in london. give me a quick teaser on your message to the world travel conference. >> kenya is open for business and it is safe to visit. all your hearing about, most of it is misconception. it is the best destination in the world. >> have a wonderful day in london. that was the cabinet secretary
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for east african affairs. tech leaders from 106 countries have decided on dublin. where else would you want to go twice >> welcome back.
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it is 7:44 a.m. if you are wondering where they anna is offmy own, to an interview. they beat second-quarter net income. the estimates are for ¥102 billion. this is for the second corridor. some of the base case scenarios they have+++
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for the second half. japanese unit cells -- sales fell. a weak yen boosted the numbers. net income rose. so make hay while the sun shines. let's talk about innovation. it is in the air. always in the air in dublin. leaders from 106 companies are gathering for a web summit. caroline hyde with a splash of color to take the irish by storm. i am joined by a very special guest. the founder of the web summit, the event is managing to dry and 20,000 employee -- draw in 20,000 attendees. companyove about this or this conference is that you are implying not only technology as a reason to get up -- get talk, you'rend making this conference more
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efficient. up andave go pros rigged experienceake the better. the foundation of our company is a lot of engineers and scientists and people with phd's and machine learning trying to make this conference better. thes industry has nevero been touched by software. fact yous by the have doubled in size compared to last year? always incredible when you ring together this ceo's of these companies. people -- 6000 people went on
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simultaneous pub crawls around dublin. a pub and overo guiness, they were -- printed out term sheets and they signed on at 826 million dollar investment. that is one of the things that could have here. >> it is very much focused on and gettingtups investors talking. last year a startup was asked -- nest. these companies are growing so fast, it is dangerous to
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dismiss, even a one-year-old startup that does not look like it is drop fox or snapchat but it could be the next snapchat in a matter of 24 months. they were sold to facebook. had launched for $2 billion. these companies are here. the challenge for investors and for journalists is finding these incredible entrepreneurs building the companies of tomorrow. >> you are closely linked to these off -- to these entrepreneurs. you had a number in your flat. i know this can happen in dublin. the chimney got blocked and the house filled with smoke and the fire brigade arrived. the ceos had to be evacuated from my house. dublin fire brigade did an incredibly professional job and put out the fire and they had to
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break down the wall. we had 50 tech ceos going to the guinness factory for drinks so we're very lucky. >> how do you start networking with these top ceo's? is it part of being a tech entrepreneur, the fact that you had to -- you had a startup before doing these conferences? >> i grew up on a farm create you have to do a lot of hustling. idea that whyhis not bring together the ceo -- i just had this idea of bringing together the ceo's. i wondered what if i called them and said why not meet the guys from the top companies, all in andplace for some time throwing a pub crawl as well. that seemed to be a magnet that
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drew an incredible group of people together. it was very small. only fund -- 400 people showed up and people liked it enough that there is nearly 22,000 people here for the next three days. >> the exponential growth continues. thank you very much. best of luck for the next three days. some cash to the local pubs as well. wonderful speaking to you. he is the founder of the web these people to be here in one place. it kicks off just a bit later. back to you. >> a great interview. you have to make sure you are on the invitation list for next year's dinner. ite a great day at the sun -- summit. oil is trading lower. 77.29.
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this is the lowest intraday price on oil since 2011. can survive $77 oil? who will begin to make the big decisions at opec? well cut production. will they? at the highest level in five years. enough of oil. let's talk about cosmetics. hey reported last night after the bell. are you wearing a l'oreal product? only 2% or 3%. l'oreal own some consumer brands. and maybelline makeup.
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this slow growth in the third quarter was due to what they in western pocket europe and bad weather in western europe. they are also lowering their for theorecast cosmetics market for this year to 30%. that is the slowest growth since 2000 nine cents the financial crisis. it is also the second time they are lowering the forecast from the original 4%. l'oreal is not alone. you have one of their main unilever whoike reported the slowest pace of sales in five years due to a drop in china. and in the luxury sector, you mh reporting a slowdown
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in asia. if you look at the luxury unit of l'oreal which includes land lancome, it is also missing estimates this quarter. >> how concerned should we be? when the speculation comes, it tends to go around the stock. where would it fit, what happens next? >> if you look at the share price of l'oreal it is down from the peak in early september. l'oreal is saying that they expect a pickup of gross in the fourth quarter. sellout.ot a it is due to some phasing elements. they're saying they will benefit that is weaker euro
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helping competitiveness compared dollar.dollar. they will also benefit from a 2 billion euro capital gain following the buyback of shares from nestlé. in aeo said last month newspaper that she expects the in 2015o fully recover and l'oreal is still very active in terms of its acquisition. bought the hair coloration brand in brazil where they have big ambitions to improve their market share. so far this year they have done more than $5 billion of sales. >> we will leave it there. a great package on ebola. we leave it there from paris. keep an ion commodities and the
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dollar. crude oil dropped to the lowest level since october 2011. futures in europe are set to open lower. dollar is a must at a five-year high and mario draghi said there are large purchases on the way.
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headlines in the commodity market. is that good in terms of a tax

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