anna: the waiting game. stocks retreat. investors will focus on clues about decembmber's meeting. manus: upgrades. the technology giant. it beats third-quarter estimates. vw ways the cost. the carmaker is expected to unveil its third quarter loss. manus: a bloomberg exclusive. usth africa president tells why he is not worried about economic contagion from china. ♪
anna: a warm welcome to countdown. i am anna edwards. mental i am manus cranny. we've got breaking news. manus: we've got manus cranny. caroline, give us the numbers. caroline: net income. billionoming in at 16.7 cronin. this is compared to 17.9 billion. we got net income coming below analyst estimates. the reason? basic impairment charges. provision overall. they are having to reduce the guided capital expenditure level $260.5 billion. they are trying to ream back their spending. their financial results continue to be affected by low liquid prices. clearly the pain that is being
exerted on oil majors. the fact that bp managed to eat estimates. we are seeing the pain coming from below oil prices feeding into the expectations that futures of these companies. this is a company that is exposed to the downstream. the refining is at a record high. dividendded to pay a of $.22 for dollar. that is in line with estimates overall. $3 billion, less than previous years. raining back their capital expenditures by $1 billion. try to work out how much more this company can+++
estimates. anna: we have seen a three-day drop around the $44 mark. that will be a conversation with the ceo later. medical you want to stay tuned for that could -- manus: you would stay tuned for that. interesting to see what his view is. lower for longer and how they are preparing. anna: this is one of the things, they are all having to deal with deflation. they are having to deal with currency market volatility. mecca that takes us into the jpmorgan global exchange rate volatility. first attempt for everything. what you have got here is when the smb the cap away from their exchange rate. so you saw volatility. what you got here is volatility from china. you see these peaks in
volatility. what you've got is a pretty big drop. jpmorgan, volatility index currency is the biggest drop since february. they are internationally focused. is thehat struck me number yesterday. we have seen the drop in the demand. strong dollar, weak demand. international factors manus:. absolutely. we are bringing it down. it is all about the feds. -- yvonne how is yvonne: you'ret? not going to expect much out of aged today. we wait for that fed decision. much.are not seeing falling for a second day in the asia-pacific.
a mix of earnings coming out. japan though, a buck in the trend. the only green spot. .66% up.e day we ended the day around those session highs that we saw. we did see retail sales that missed estimates. , the hong kong once, dropping the most in a month. shanghai looking like this, 11% down. falling the most in a week. bad earnings, especially bad for traditional industries. we saw the kospi index down. domestic demands, department store sales rose 2.8% on the year. australia stocks down .2%. we've got inflation numbers that were a miss.
cpi for the third quarter ended up 0.5% growth, that is lower than what we saw. you can see the australian dollar just plunging here. 71 u.s. cents. anna: yvonne man, thank you very much. that fed meeting, just to hammer home the expectation. 4% are the nubbers today. this could still be in play. the question is if december is it in play. if december is still in play? the markets is not going to move until when? march. anna: these numbers are coming through from hedge fund futures. let's switch gears.
we will return to that. let's talk tech. another blowout holiday season is being set for apple. the world's most valuable company recorded -- reported earnings. ease investors concerns? caroline: got a picture being .ainted for apple and twitter very different pictures being painted. let's get to the juggernaut that is apple. they are going to be caring about the federal reserve rate decision. the strength of the u.s. dollar knocks a percent off of their overall sales because of the foreign-exchange hit. they are managing to exert strength. the fiscal fourth quarter is what they came up with. profit up 31%. some $11 billion. you're getting 51 b and dollars
worth of sales from apple that quarter. the stand out here. that is what caught my eye. iphone sales up 87%. third-quarter. china slowdown is slowing down a little bit. this company still thinks china is going to be the biggest market. they are unrolling more new stores. 25 at the moment. confidence, tim cook coming out saying i would know there are any economic issues in china. that is the strength of demand for apple products, for iphones in particular. new six and the new six s plus. the asian community likes bigger phones. let's have a look at the next quarter, the holiday quarter. you are right, it will be another record, anna. 77 $.5 billion worth.
that is 4% growth. compare that to this time last year. it was 30% growth. we are seeing a marked slowdown. sales growth is slowing. dependence is on the iphone. looking at how much this brings an overall, we are seeing phenomenal amounts of iphones inc. sold. -- iphones being sold. is it too much dependence. you got a slowdown in the number two product, ipads. not really seeing the likes of the watch kickoff. they are selling less than 4 million of these products last quarter. they have sold 48 million iphones. clearly the iphone is really where it is at four i -- for apple still. no double-digit growth is expected for apple in terms of revenue until the end of 2017. the past four quarters we have seen what he percent growth in
excess of good now we got less than 10%. i want to see what happened over twitter. 58%, buteing sales up third-quarter user growth is slowing. you got 11% more users. impair that to 1.4 billion of this book. billionre that to 1.4 on facebook. iseave you this, the fact they are seeing the quarter, the market wants to see 55% growth in sales. they are promising 45%. their short -- therefore it shares plummeted. anna: thank you. manus: we are still on twitter. we are going to talk about what what the w's cost of the emissions scandal.
anna: welcome back. you're watching countdown. here is the story you need to know. manus: this evening, the federal reserve will liver its rate decision did the market is pricing in for 4%. a chance for a move on monetary policy. there will be no press conference. -- norway's biggest oil company adjusted income which excluded -- $436 million. manus: shall says it would take a $2 billion charge as it holds and oil science project in
canada. it could not complete its portfolio. the $2 billion charge will be recorded in its third quarter earnings released tomorrow. -- and its third-quarter earnings released tomorrow. car industry will be hoping this week's tokyo motor profit thaning more headlines. manus: a new flagship model at the show today. fire by hydrogen fuel shells. he joins us from tokyo. great to have you with us on the show. let's talk about the unveiling behind you. when am i going to be up to walk into a showroom and purchase that? >> things for joining us in tokyo. the car behind me is in the ellis fc. it is the lexus future flagship.
it is a concept car. it gives you a great hand to where we are taking the lexus in the future. fuel cell technology. what can be better than taking the most abundant element on hydrogen, putting it into electricity and the result is water vapor. anna: tell us how significant this technology will be. take us forward five to 10 years. tell us what balance of your business is going to come from these areas. i cannot give you a prediction on the mix yet, but we feel like the hybrid. we have 12 hybrid vehicles. electric andd and fuel-cell vehicles will be the future. we want to take a leadership role in that.
manus: talk to me about the infrastructure challenges in terms of fuel-cell. in terms of hybrid and electric. there are still major challenges in the rollout of infrastructure to support your lofty ambition. there are two challenges. one is cost. the comes with any new technology. that is why it is great for us where we can charge more for our cars. the second is in the structure. the good thing is in many parts of the world, there is a lot of developed markets having infrastructural rollout on it pretty rapid basis. andhe state of california the east end seaboard, there are a lot of stations coming on board to do hydrogen fueling. u.k.,is germany and the korea. right here in japan we are building a hydrogen society. there are places around the world where they will take a
leadership role with technology. those of the places we like to go first. anna: vbw scandal is something that rocked the entire industry. seen --hink we have does this marked the first stage in the death of diesel? do you think european carmakers architect but that technology aside? is the do not think that case. they're starting to adopt the technology that we launched years ago. german competitors are starting to launch their first and second hybrid. they agreed that that is where the market is going. there will be a variety of powertrains that work in different parts of the world. the market will move toward electrification. manus: mark, every single carmaker is going to see this as a moment to capitalize and
extended their market share. you are already number one. what i want to know is where are you going to target in the nerd the near term to capitalize on the market what brand is going to be key for you in terms of taking advantage of this move? we are not going to let anything else in the industry change our plans. we have developed a plan many is ago. we are good to carry that out. over the last four years as i have worked here in japan to globalize the lexus brand. that strategy includes a lot of these kind of vehicles. a great design, driving dynamics , expansion of our export lineup -- our ex sport lineup. a turbo engine as well. altogether, those will take us to where we want to go without try to take advantage of anyone else.
anna: can you attribute any uptick in sales in europe to the problems of vw? d.c. the evidence in your numbers? mark kirk -- do you see the evidence in your numbers? mark: no. i attribute that to the product plans that have taken place over the last couple of years. we've created low co2 vehicles. our sportier cars. the new lexus annex which we cannot build enough of, those products are driving ourselves. sales. weving our have been known for having the best quality and providing the best retail experience. over the last four years, we have worked really hard to show people the emotional side of our rant. -- of our brand.
manus: mark, we wish you well. the launch of that beautiful looking car. anna: thank you for competing with the background music. executive vice president of lexus international. how does the auto industry overcome the reputation from the vw scandal? -- securingoke to the trust is the number one priority. >> the days of the relationship with us is trust. each carmaker needs to do whatever he has to do in order to maintain this trust alive and strong. which requires a high level of transparency, communication, coming forward whenever there is a problem, recognizing that. we know that. we have learned it so many years
of experiences. many carmakers have problems of different source in the past. -- different sorts in the past. reserving this trust is our number one goal. anna: keeping with the auto theme, we will have those vw earnings. in about an hour and a half time. first up, we'll get a rate decision from sweden central bank. manus: we got earnings. volkswagenloyds and and heineken. that is to name a few. anna: the main event is going to be the fed rate decision at six clock u.k. time. -- at 6:00 u.k. time. it is no meeting but there is a statement. committed --st
what is your number of the day? anna: four. manus: that is the official number. anna: vw is going to be importing a number today's is going to be reporting a number today. -- is going to be reporting a number today. hans has a preview for us. hans: in volkswagen, they talked about an apology. herbert dietz giving a strong apology. he did not bow as is a japanese custom. bow dessie pless to make it right. they are working on a fix. we had in the states the transport minister talking about how he did not think it was going to affect the overall german auto industry. it just had to do with the technical problems at
volkswagen. forward toing earnings. they could come at any moment. are expecting is there to be a net quarterly income loss over the next first time in 15 years. when you look at the charts and what is happened, this chart shows the growth that they have had. we are also expecting a net income loss. we take a look at the numbers for 2015. we expect those to come in and for 2016. billion it is a big come down from where the yard. let's take a look at overall revenue. looks like and has been printing money the last few years. again, we are expected for revenue to come in less than it has been. it is going to go on a downward trend. when you think of the overall challenge volkswagen has, take a look at their geographical revenue income is tradition. they are very strong in europe.
122 billion in sales come from. in north america, a lot of those sales driven by audi, the luxury unit did when you look at -- luxury unit. you look at the chart, you see where the strong growth has been. it has been in the asia-pacific region. north america is where they want to go ahead with the volkswagen brand. try to turn things around. for the numbers. we are also waiting for the new ceo of volkswagen. he will be on the analyst conference call. normally volkswagen does it with the cfo. the ceo is going to be on this time. manus: we are waiting for my tears -- we're waiting for mattias. they usually leave it to the cfo. what caught my eye, they are already bring in thomas, he is coming in from chevrolet.
you have christine than heart. he is already making moves to bridge some of the criticism. hans: mattias wants to start off with a clean slate. he is going to be a different ceo. i think the fact that he is going to be listening on this comp skull and answering questions is an indication that he wants to answer questions and be a slightly different ceo. manus? manus: hans, thank you. potentially the first loss in 15 years. it is about the numbers, that is the question. anna: the provisions and any update on that. 6:26. we would take a short break. next, we're been to be talking about the economy and emerging markets. we have an interview for you. south african president tells bloomberg that china has become the -- of the world.
manus: it is 6:30 here in london. 7:30 in russell. these are the stories need to know. anna: apple says it will have another record holiday season. the world's biggest company says sales will be between $75.5 billion and $77.5 billion. tim cook is optimistic on china. >> we see enormous change in china over the next several years. we have seenudy from mckinsey indicates if you look back five years, china has
with 50 million people. if you look ahead, it will have 10 times that number. i feel like we are well-positioned in china. i am sure we can do better. we are doing fairly well there. changedares were little in after's out -- and after hours training -- in after-hours trading. medical third quarter earnings per share of tensions were double the analyst estimates. the fourth quarter sales forecast fell short of expectations. stock fell sharply in extended trading on the news of talk percent. 62% sinceoil says crude slumped. they saw adjusted net income
fall. that is less than half of last year's figure. that was for around $600 million. over to the get yvonne man. she is looking at the asian markets. a little bit of breaking news. numbers, get into your -- 16.7ays there billion. .hat is a fairly big beat breaking numbers from new more up. let's get over to yvonne man and check on those asian markets. out of all of these markets, we are seeing japan being the bright spot. closed up. the boje are expecting meeting happening on friday. the fed meeting happening later on today.
they are talking about this drop in industrial production. they reported that on thursday. another drop would mean a third consecutive month of declines, feeling concerns. this could mean a second recession since the prime minister took office. talk about china stocks. three quarters of a percent down right now. the biggest loss and a month. there has been a survey out by bloomberg among economists see one and done of a triple cut this year. to deposit and lending rates. lookingghai composite at 3408 right now. one company heavily investing in .hina today
a lot of them coming from asia-pacific region. a taiwanese company, those all generate revenue more than 50% that comes from apple. we are seeing a mixed picture on some of these apple suppliers. some big moves today. all falling today here in the asia-pacific. ask you. -- back to you. anna: yvonne man, thank you very much. ♪ manus: it is fed decision day. , ourand i have been saying guests is chief european hewin.st, sarah welcome to countdown. anna, what is your number for today? anna: for percent chance of a change in interest rates.
does that some things up for you today, sarah? market economists have a slightly different way of viewing the world. serpico i think a 4% chance sounds about right. what is more important is what comes out of this meeting. do we see any key changes in the messaging. importantly, what is a signaling for december. it is a ho-hum meeting. there's no conference. no news forecast. we get the whole works. the press conference. they are also being to us, it would be quite shocking. the nuances of the language are going to be important in terms of validating yellen's recent statement. moderate or modest.
sarah: we need to focus on what they say about the global economy. those comments about global economic and financial development. monitoring development abroad. those are significant bit of the held back why they from raising interest rates in september. do they continue to keep those raises and the statement? what do they say about the domestic economy? there been some wobbles on the domestic activity side. anna: you will find reasons to say that the domestic side got worse. analysis suggests the fed is tryingomething unusual to keep monetary policy loose. trying to drive unemployment down using that. some suggesting the linkage is
not quite clear. raised.e got questions they are saying can we really rely on these relationships. does the phillips curve really still work? i think that is important question. these jobless claims data suggests that these markets are in pretty good shape. payroll has not been as good in the last couple of months. manus: yellen has given over 6 million reasons why she should take her time in raising rates. is this is about those people who are so disheartened they want to leave their job. people who are doing part-time work here it this is where some of the division comes in. in terms of is that is what she
is focused on? could that play into holding back? sarah: that is something she has been focused on over the past year. we have seen broader measures of unemployment also coming down. the question is at what point do wages start to respond? so far we have not seen that happening. wage growth has been pretty stable. for some fed members, if you wait until wages are accelerating. if you wait until inflation pleasures -- inflation pressures are accelerating, it is already too late. in terms of whether you hold off or make a move in december, there are other issues today think -- other issues to think about. rates tor you hold zero, the more you build up problems and financial stability terms. some people would argue that inflation is very low. ofwe take broader measures
core inflation, it is not so low. sarah, thank you. we are going to switch gears. one of the things the fed has been wrestling with is the china story. south africa's president says his nation is open for investors. in our interview, the president praised the chinese governments handling of the slowdown. he pointed to the slowdown -- he pointed to the special relationship those countries share. -- they knowke to very well what to do. theynk the manner in which -- i think itar has been the most prudent one. i am hoping they will be looking and with the same kind of approach there been having. [indiscernible] the fact that everybody talks about china has investors
looking at them. capacity tohave the advocate in a -- in that's in a matter a manner. [indiscernible] was jacob zuma speaking to us exclusively. xoma --hen you hear it when you hear zuma talking about the chinese getting it right. we have seen this effort by central banks recently over the past weeks, we have seen china act. let's wait and see when the bank of japan. all of these central banks are really on a mission to regain their mojo. to stabilize the markets. will they affect growth? are we facing down the barrel of a global growth slowdown? we've seen that slowdown,
that's for sure. seven years on from there, the financial crisis, central banks are still adding to easing. i think it is quite serious. at the same time, we ate can see in europe -- we can see in , monetary policy is starting to raise lending. we have seen solid activity numbers. it is more a question of central banks being nervous about deflation risks. they got the message from the -- , once in deflation, it is difficult to get out again. deflationmake sure doesn't hit the euro area. anna: how worried are you about china domestically? shows a nice graphic that the chinese listed companies, low levels of cash and
experiencing net losses. the count of those businesses going out by the time the chinese economy is slowing. it is a worrying development. sarah: that combination is never good. i think this is why the authorities in china are doing what they are to try and sustain growth. we have seen from the pboc, the monetary easing last week. banks seeing policy directed to increase lending. those are not coming through as strong. it is a matter of time before we see infra structure spending. adjusting some of the short forms in investing. matthias: let's have a look at this. we got the yuan here. -- manus: let's have a look at this. we've got the yuan here. the question of whether they go
again in the cycle. they have liberalized the interest rate. there taken some moves. really to stanley growth, is a grand policy -- to stimulate growth, is a grand policy action? -- is it grand policy action? sarah: in our view, the move back in september was tied in with inclusion. rather than kickstarting growth in exports. priority, it is to rebalance the economy, rather than to rely on the old drivers of growth. interestingly, if you look at what is happening to consumption, one part of the economy which is continue to well. we think more policy easing, more support for investment across the economy measures to sustain credit growth are going
there will be no press conference following the meeting. anna: shell says it will take a .2 billion charge shell is stopping work on the $80,000 early day project after deciding it cannot compete. the charge will be recorded and its -- will be reported in its earnings. manus: apple says it will have another record holiday seizing. -- holiday season. sales will be between 75 point --billion and $77.5 billion $75.5 billion and $77.5 billion. >> we see enormous change in china over the next several years. indicates ifudy you look back five years, china's middle class had 50
million people in it. if you look ahead five years, it will have 10 times that number. i feel like we are well-positioned in china. we can do better. we are doing fairly well. up in apple shares traded after-hours trading. anna: joining us is tim cooling. he is the chief economist at standard chartered. what do you think of the big picture with apple iphone? driver forssive apple is the iphone. there was some great comparisons in terms of volume. year was when it took off in a global way, especially
within china. enable thatns product to fly there. coming up, comparisons will be more difficult. skills and the hardware to keep that momentum going. 87% -- applegrew group 87% in the china market. during the analysts call, tim we are neversaying going to have an issue in china. you and i think there is h -- there is a problem. if you're rich enough to have an iphone -- that is not what we are worried about. what do you think of china participation in the store it? tim: everyone is looking at how is consumer confidence in china at the moment.
, they hadk at alibaba a pretty strong result. in terms of consumer spending did there doesn't seem to be much of an issue. test spending, there doesn't seem to be much of an issue. if you look the market as a whole -- spending, the distance and to be much of an issue. if you look at the market as a whole -- consumers in china are looking at spending more on devices. looking at higher quality devices. there is plenty of upside there for apple as long as the economy is good. sarah coming learned anything about the macro? this is a story that flies in the face of the macro. sarah: it is an indication there are some parts of the chinese economy moderating, the ship from -- the shift from nvestment to consumption --
manus: he said 50 million. 500 million in less than five years. that blows my mind. sarah: the growth and capital incomes. how people move up from basic consumption to more sophisticated. basis, whyon a daily we spend so much time talking about it? the numbers are starting to make me understand. anna: the skeptics on the apple story say it cannot keep on growing. you add in some other large numbers like the population of china, in fact they can. tim: they have to keep the iphone going in these developed markets where they are already very established.
tim cook mentioned the iphone upgrade program, we are seeing a purchasing behavior that is recovering -- that is speeding up the replacement cycle. growth is starting to stagnate. applesual upgrades as to quarterly section desk quarterly shipment. -- they've got it right. apple is 1% of transactions in the u.s.. ondidn't make a big deal apple pay. they didn't sign the lights. tim: if you look at the way their business is structure. so much is relevant. so much is dependent on the iphone doing well. lock people into
apples ecosystem. it is good to see apple doing well in other areas as well. increasing the stickiness. anna: they have spent time modeling the apple product. tim: they are talking more about the television being developed through apps.ered television is a difficult market for anyone to break into. a lot of content agreements any to be signed. you need to have the relevant content for the relevant markets. it is not a product that can take off globally. it has to be approached market by market. they are making some inroads in the u.s. to get sweeping success takes time and revolutionizing that market will not be easy.
manus: one of the other dynamics of this report was about the strength of the dollar and foreign exchange. that ties back to conversations we have had this week. the dollar has been appreciated. when you look at these currency moves in terms of earnings, is that a drag on economic growth? that the is something fed has highlighted. concerns over the strength of the dollar, the impact it has isr inflation, on exports one big factor why the fed has held back from raising rates so far. the question of course is how significant is it? we seen currency movements elsewhere. concern for ,otential banks to hold off
anna: welcome to "countdown." manus: the third-quarter profit comes in. the analysts were expecting a number of 2.1 billion. .hat buffer of capital they had when it comes to how you are in and banking, we look at a number called nim. is, paymentue protection insurance. it looks as if it is making a provision there.
q4,concern is, in q3 and see a loss. anna: let's go to caroline. we have a new chief executive announced for barclays. he is someone with three decades of experience from jpmorgan. passed overr being for promotions to join as a managing partner for blue mountain capitol. he will take up his role and , as ofthe barclays board the first of december, 2015. it has been rumored that this will be the man who will take
over for antony jenkins, who was ousted by mcfarland. antony jenkins, the previous ceo, is a man from the retail part of the business. now they have a man with investment banking experience. other than john staley. anna: we see extensions to the deadline for the conversations .aking place between they have asked for an extension to their conversations around a . pusu coming through this morning.
companies have been having this conversation and out they have longer to have it. let's go back to caroline. caroline: heineken is coming out this morning. 7.5% increase in consolidated revenue. expected 3.9% growth. they are revising their four year guidance on the back of ncy guidance. they expect the effective tax rate of about 28% in the full year. a forecast ofsee average interest rate of 3.2%. it is overall, a big beat when you are looking at the beer volume sold by heineken.
it is climbing 5.4%, double where the market had anticipated. they also see consolidated revenue in excess of estimate at 5.5 billion euros. this company is starting to see a turnaround. they had seen a sizable rebound in europe off of the two week quarter. growth.ther helps beer heineken is living up to the optimism. it is a big beat in the volume and a beat on the revenue front. anna: i guess it depends on what to our drinking in the morning. let's look at the next set of numbers we have. the first of the big u.k. retailers to report for this autumn.
guidance for the new year remains broadly unchanged. in the detail, it does seem to be an interesting upgrade. they are talking about how their brand sales will grow from 4% to 6%. it seems as if they are boosting that a little bit. this is the first of the big u.k. retailers. must you in the third quarter they were weighed down by the warmth of the summer. this year it was expected that these numbers would get a boost as a result of that weaker comparison in the previous period. next.sting coming from manus: the u.s. equity numbers have been trading. .5%.n indicated barely
paris is up by 3/10 of 1%. the focus will be on barclays this morning. mcfarland,looking at the chairman. he is hiring a client guide, but not an investment banker. the investment bank in jpmorgan. that is the critical differential. anna: trying to get ahead. jes staley trying to get ahead of the political noise. we have news coming through on another story that has been in the works. was good to caroline. caroline: it is that 12.5 billion pound deal. got the provisional thumbs up from the cma. they have provisionally cleared
the bt and ee merger. these companies operate and largely separate eras. this is a phase two investigation. were concerns the deal could lessen competition in the u.k.. the only worried that would it form the biggest broadband speed network, but also the biggest wireless operator in the u.k. would that remove competition and choice for the consumer? it is seems not. the cma is giving the provisional clearance for bt and ee to go ahead with the merger. they want this done by march of 2016. manus: what a raft of information to get through at the start of the trading day. well done, caroline. let's look at how the asian markets have fared through the trading day. it looks like it will
be another down the day in the asian pacific as we do away with the fed's statement and the boj. low volumes all across the board. hong kong was the only one who up in the volumes. take a look at how the shares were trading over the course of the last hour. there different from what we thought yesterday, when there was a surge in those shares. we continue to see a continued downtrend there. this is the worst drop we have seen in a week. you may remember last wednesday when we saw the 3% drop, two days before the interest rate drop. analysts are not expecting a pickup and earnings. pretty much everything has been
pretty bad. this year we will not see much of an upside. investors are focusing more on the thematic investment in smaller companies. see some greeny here, four tenths of 1% up in the shanghai composite. one company is defined the china slowdown. strategy of shifting toward mobile shoppers seems to be paying off. sales jumped 32%. they were able to monetize how sellers can put ads on their mobile screams. we saw inflation numbers coming in through the australian economy. the aussie dollar took a bit of a plunge. close to 1%. lost half of a u.s. cent. anna: thank you very much. manus: let's bring our guest
host back in the conversation. she is the chief european economist. when we broke the lloyds numbers, what are the big seems many would say that has helped drive this money. it is 14 billion pounds. for the u.k. it is 20 billion pounds. we are seeing a bit of a taper and the u.k.. yesterday's numbers were not great either. >> the support from the consumer is still very important. we are improving employment and rising earnings. just as the boost starts to wane, we get help from the labor market. the numbers we saw yesterday from the u.k. were very much focused on the manufacturing
sector on construction in the third quarter. services are still holding up quite well. forward, deficits will continue to be supported. you have to go quite far out. about after next year now, aren't we? when do you expect? >> i think it is interesting. if you ask an economist, generally they are looking at a move in the third part of next year, rather than the first half of 2017. anna: economists are suggesting that central banks will pull the trigger before the trading community thinks so. >> if you look at how central bankers are thinking about this issue, it is not just the here and now. weis not just the fact that have low inflation and no signs of inflation pressures from the u.s. or the u.k., the question is, there will be in a couple
years time? policymakers have said the npc and the bank of england will have to think of inflation in 2017 and 2018. said about rafe inflation that that would begin to drop in the numbers. ubs, he said we would see a rise in the inflation rate and oil prices. do you concur with that? does that go with your thinking? you will see headline inflation moving up quite quickly around the turn of the year. this ties in with what happens to inflation expectation. f we remember what
jes staley. he was formally at j.p. morgan, where he was seen as a candidate to take over. anna: third quarter profits fell 9%. cutting investments planned for this year. $5 billion in the face of the oil slump. the start of production was also pushed back. third-quarter income was adjusted to about 30%. anna: let's talk technology. we got plenty of news out of the technology sector overnight.
another blowout holiday season is set for iphone. the iphone maker, apple, reported earnings last night. forecasting another quarter of record sales. enough to ease investor concerns about the future? caroline hyde will break it down for us. caroline: let's start with the good. let's start with the beat we had for the last fiscal quarter. the numbers are pretty astonishing when you dig deep into the world's most valuable company. they are up 22% profit. profits are up 31%. china's sales stand out. million selling 48 iphones in the fourth quarter. that is almost two thirds of their entire sales base. billion dollars is how much they made from one product, the
iphone. that is more than all the revenue that facebook and microsoft bring in combined. china is helping to drive that scale. iphone sales are up 87% in china. it is starting to escalate from the previous year. tim cook is shrugging off concerns about the chinese economy. he said, i wouldn't know there are any economic issues in china. what about the holiday season? what is next to calm? we are expecting a record of $17 billion. 77.5 billion dollars is the top of the estimate. that is actually only 4% growth. compare that to the 30% growth we had this time last year.
is slowing. they are so dependent on the iphone. is this a bit of a party? seeing slow sales with the iwatch? double-digit growth until the end of 2017. manus: we are both going to keep these numbers high. anna: is it used by anyone else, apart from celebrities? is anybody else engaging in twitter. he came on earlier this month, back at the helm. he is the ceo of square. revenue looks pretty good when you are looking at the numbers we got last night. revenue is up 58%. profit also beat estimates. the amount of users is still a
concern. the third quarter user growth slowed to 11%. they have 300 and 20 million users. 400 billion users. they should focus on new -- what, a new chairman will he do in terms of focusing the company? and what about discipline? jack dorsey is already announcing job cuts. the cost of discipline that will be happening over at twitter? the forecast is for revenue to grow 58%. -- grow 45%. they are looking for more. anna: thank you very much. be the know if you can
ceo of barclays and be on twitter at the same time. jes staley was appointed as the ceo of barclays. experience. not just in investment banking. he understands corporate and investment banking well. the repositioning of which is one of our major priorities. that is what has everybody scratching their heads. what does this mean for investment banking? does this mean they will reorganize it in a more thoughtful way? manus: they seem to be looking way toore thoughtful reorganize their investment banking. at staley is on the board ubs. he has pretty good exposure to strategically turning a bank around from an investment bank focused to a slightly more retail management bank. came out thisbers
morning. another big worry is that it will cost them another $1 billion between this quarter and the next quarter. anna: let's take a look at the other data due out today. we need to get a rate decision from the sweden central bank. we are still waiting for the vw numbers. manus: you have got your number of the day. i would like a drum all for that. that is the fed decision. chance of a move on interest rates. thes: let's continue
conversation. we have a chief economist here. i think equitably equivalent institution. the gains for all tortured by negative interest rates fighting off what is happening with the ecb. sweden is expected to deliver. will they continue or tolerate a higher currency? around,nk this time they may well indicate that they are sticking with an easing stance. back in july, they cut rates further. we are seeing some signs that economy is responding. we have seen inflation picked up. when you look at how much slack there is in the economy, most of the ricks of a further downturn
of inflation, there is not too much slack left in the economy. bank fighthe central against inflation and when? are the lessons here? >> i think there are. it is too soon to say. we will have to the how things develop over the next 12 months. a lot depends on the international environment. a lot depends on what happens to the currency as well. that has a big impact on inflation. overall, i think in terms of activity and core inflation, in terms of eliminating slack in the economy, these are all positive and suggest that the policy they have adopted is correct. manus: let's wait and see what they deliver. sarah hewitt, chief economist. vwa: we are expecting
it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. manus: it is 7:30 in london. anna: barclays has confirmed jes staley as its new ceo. j.p. morgan,ly at where he was seen as a candidate to succeed diamond. he will take over on the first of december. manus: the deadline for the world's biggest brewer to face its biggest competitor has been extended to 5:00 p.m. london time next wednesday.
the financial terms have been reconfirmed. ys it will take a $2 billion charge. it is starting work after deciding it could not compete in its portfolio. will be recorded in its third-quarter earnings, released tomorrow. manus: we are less than 30 minutes away from the start of the european trading day. we have had a rush of earnings. barclaysad the s reappointment. we're looking over the lloyd numbers. anna: the headline take away is really not a huge change. bit betterl a little of an opening for the european equity markets. somethinghave quite
from the car industry. we have the tokyo motor show. we have been discussing securing customer trust in the wake of the vw scandal. it is the main priority. us is relationship with trust. for each carmaker, it is to do whatever we have to do to maintain this trust. obviously, a high level of transparency. a high level of communication. a high level of coming forward. problem, were is a have to recognize it and try to solve it. we have learned this from many years of experiences. many carmakers of that different problems of different sorts in the past. doubt, i think preserving this trust is our number one goal. vw scandal is casting
a long shadow over the tokyo motor show and will weigh heavily on the carmaker's third quarter earnings. on singles is standin hans is standing by. w ceo has apologized for the scandal. hans: the head of the volkswagen brand apologized, manus, but he did not bow. the head of the japanese division did give an apology with the bow. that is in the japanese style. they are going to write this wrong and work two wio win back trust. is the rest of the auto industry going to be affected? merkel is flying to china with the ceo of the vw group. in the states, we had her
transport minister. you was briefing reporters. after he briefed reporters, he said his take from u.s. regulators is that they thought this was just a vw problem and that this was not affect the entire auto industry. at least in the states. marco will made her best push in means trust.w still anna: we are expecting the ratings report. it could have historical importance. will the c.o.p. on the conference call, but we will have a quarterly loss. willys the first time set aside six $.5 billion and part of the loss will be attributed to that. when you look at what they have
done, we have seen remarkable growth. 2016umbers for 2015 and will dip down. then, you take a look at where they have been quarter by quarter. there is another story of growth, growth, growth. this will give you an indication if their overall sales will be falling back a little bit. then we take a broader look at geographically what their challenge is. of course, they sell a lot of vehicles and the european union. .t also sell a lot the growth rate in the eu is not in asia.s it is expecting these numbers any moment. be on your toes. i am excited. manus: i am so excited i have
prepared two graphics. anna: hans can barely remain in his seat. to him as soon as we get those numbers. see you in the studio. we could see the first income loss and 15 years for vw. the share price dropped to medically. -- dramatically. >> a good point was made about trust. has built trust over the years with its shareholders. that is why this performance is painful, down 43%. yes, we will see a quarterly loss. that is for sure. manus: the change has already begun, in terms of running this company. there are new external numbers.
he is already affecting quite serious changes in terms of how this company will be running in the future. >> vw has been criticized for many years, from other people as well stop the company has been run in an autocratic way. all decisions have been made at the headquarters. this is a global consumer business. german and needs more diversity and more international people on the board. or people with outside experience. anna: you have also been talking to get helped from shareholders. paint a picture for us. the things that incentivize vw are different.
theiryou look at management system, they don't have a share program for a stock options program for management. management is judged by growing the this mess. all about growth, selling more cars. that is creating this monster of a company with all of these different brands. where it is pretty sure that management incentives are more aligned with shareholders. i don't know if they even care about share prices. manus: the porsche family certainly does care. they have invested in it. anna: the ownership struggle about the business is one of the problems? >> it almost seems like shareholder value is an evil b uzzword within vw. manus: i can imagine the press having a field day.
about the culture within the company and caring about shareholders as they care about workers and customers. manus: anna mentioned porsche and the family. we have lamborghini. given what we have seen from ferrari, could this be what is to come? has recalled some of the parts with huge values. if you objectively take the evaluations for every just got got, it is raterrari just
less exclusive. i am not saying that it can't happen, but it shows you the embedded value within the vw group. anna: are all things on the table then? you don't even have to spin off the entire business. a number of businesses have a small part of the business to force markets to put a value on something. they felt it had been ignored. this might not be the right time for them to be talking about this. are there parts of the business they want to get rid of? >> volkswagen owns many brands. i think at the end of the day, the key question should be, what
makes vw the better company? is it a holding structure where you can incentivize management teams? or is this a huge integrated conglomerate? they should just lift the value for the sake of it. they should do what is best for the business to thrive. manus: is this the man to do this? what is your understanding in terms of his proclivities? is he a man to manage change. >> i have a lot of respect for him. he has not been in the inner circle of the vw management team. he has been outspoken in the past. i do believe he is the right man for the job. he's probably got the bigger job, turning over the vw brand.
approval to merge with ee. ee is a joint venture. manus: apple says it will have another record holiday season. company saysiggest the sales will be between $75.5 billion and 77.5 billion dollars. that will top last year's record. >> we see an alarmist change in china in the next few years. -- and enormous change in china in the next few years. if you look back a few years, 50,000 working-class had people. if you look ahead, they will have 10 times that. i am sure we can do better.
we are doing fairly well there. it's looks like we will get a rise in the equity markets. let's get to caroline hyde. i am talking about barclays this morning. it's confirmation is one that has been speculated on for about a month. jes staley is taking the home of barclays. you can see the rocky ride barclays has had, regarding its share price. it is still 12% higher. market has its relief. it has its new chief executive. this man spent more than three decades at j.p. morgan, he even let the investment banking unit. mcfarland says he understands corporate and investment thinking well.
the repositioning of which is one of our major priorities. barclays needs to become more profitable. promised hes will double the share price in 2-3 years. how will jes staley take this challenge? he sales in from new york? will he be moving to the united kingdom to take the helm? he was interviewed by u.k. regulators last week. that was the final hurdle before his appointment. the appointment was confirmed today. he did not manage to become the number one at j.p. morgan. gets to lead a big bank. let's talk about lloyds. they did not have a lot of change this morning.
acrosss to be missing the board with third-quarter profits falling my percent. it is now 2 billion pounds. there are some positives to take away. margin, the money they get in from lending and the seems toy give out, be improving. equity team says the overall measure of stability of financial strength is improving. and withhand they give the other, they take away. they are also booking yet another provision. this time of course, related to loans with the ppi. another .5 billion was set aside against ppi. it is set to potentially rise another $.5 billion this year. move.ineken stock will
it is set to rise 3%. you are getting sales and revu e enue doubled up. it is almost up 7%. anna: thank you very much. norway's biggest company is stepping up on spending cuts. 60% of the third quarter follows bp's drop in profit. will kennedy is here. it is great to have you here. theme, got a profitability dropped. will: they have a much smaller business. they are much more exposed to the lowering of gas prices. what we see from the earnings
a lot in common with bp. they have cut spending interests. anna: they will do things they don't want to do. cut back on production overall and cut back on payments to shareholders. are fundamental. cash andtion means cash means you can continue to pay the dividends. all of these ceos need to keep the shareholders. some cases, they need to borrow more money to pay investors. manus: some people would say that is a folly strategy to go after. i like this story. is $60. number for thec
likes of bp to have to continue borrowing. to be coalescing. total gave its number a few weeks ago. they said we are going to tool the company to be near $60. $60 is quite a long way from here. bp follows suit. year.ay, give me a with $60 they can do what they need to do and pay shareholders. anna: we will get numbers from shell tomorrow. two months have passed and we have had two major strategy changes. rethink.doing a big >> they are looking at every plan they have any portfolio and asking, does this make sense? they are really taking the ax to a lot of it.
they have shelved a great big project in canada. pain coursing of through the canadian industry right now. in terms of defending the dividend, we have seen a lot from the ceo. it is a big deal. big chunk of all of our pensions. shell said they have not cut the dividends since 1947. that shows you what a serious thing it is for the company. shell has very little debt. we real crunch will come if still have a huge oil glut in 2017. anna: thank you very much.
you have a huge day tomorrow. manus: move" is up next with jon ferro. what is at the top of your agenda? jon: i am looking forward to our conversation. the big macro conversation, of course. day meeting wraps up. what is the expectation in terms of the market? we're looking out for a rate hike. but ahead of the european open, two companies dominate the conversation. we await the volkswagen numbers. they are set to deliver their first quarterly loss in more than 15 years. the ceo has to face the music. we will also be discussing barclays. they get the man. the former j.p. morgan banker, jes staley. there are big differences
diamond.im and anna: we will be back after a short break with "on the move." we're still waiting for the vw to come through. manus: the operating loss is 3.26 billion dollars. anna: this is the first quarterly loss in 15 years. manus: jon will break down those numbers for you. anna: that'll do it for "countdown" for you. the european open is just minutes away. ♪
jonathan: good morning and welcome to "on the move." moments away from the start of european trading. let's get straight to your morning brief. the waiting game. investors wait for the federal reserve policy statement. look for rate hike clues. , former jpmorgan senior banker takes the top job at britain's second-largest lender. volkswagen expected to unveil its first loss in 15 years. ceo prepares to face the music. ahead of the open, about 25 seconds away. but the futures that flat. -- ftse futures that flat.
-- dead flat. barclays finally getting a chief executive. is it the worst kept secret in the city of london? let's see the market opened with caroline. caroline: no call for any moves. europeee the moves for here two days of decline. the ftse holding its breath ahead of the federal reserve. we will seeability any move today. the first rate hike since 2006 continuing to be delayed as global growth continues to falter. concerns over in china. today completely flat when you're looking at the ftse 100. france utterly flat. the decisions that come out after european close at 6:00 p.m. today. not much risk-taking