>> janet yellen answered every single question. beme assure you, you can sure that this woman will not leave any rock unturned. language that is far from done. far from happy. easy street. we are there. the 04 door. whatever you want to call it. -- the zero corridor. what everyone to call it. -- whatever you want to call it. consensus, thet this. coming out with this is to watch. puts without a doubt. manus was watching janet yellen and she talked about monetary policy.

pressure is to have a threshold at seven percent. they did not think they would hit it. we are 0.1% away from it now. we have to do something about the forward guidance in the next phase. we have to be honest, francine. everyone is guessing what type of shape that takes. nobody knows. >> we will carry that live. it is interesting. you have to monitor the growth and rates are staying well. but it is a difficult job. -- >> it is a difficult job. i don't think anybody anticipated this. >> it is a very goldman-ask trade. >> i know where you're going with this. we will come back to the forward guidance. let's go to berlin.

you are watching heineken. >> i have been watching heineken shares. as opposed to the trading and first-quarter numbers, in october, we are seeing a positive statement and they are saying global recovery is weak and there is a better performance in the emerging markets. >> thank you so much. heineken is gaining 2.9%. ceo ake to the deputy short while ago. let's see if we have an opening price. 2.1% is above analyst estimates. some of the french banks have spoke and they said they are not

concerned about litigation. numbermorrison is the four and united kingdom. led by mr. ken morrison. we understand that the family has approached a number of private equity companies. it may be in play. who do you get who will pocket the deed. i can remember when i sat down with jason. said, can private equity's comeback? in the united states of america, that is something that has been.

equity markets are trading higher. after therogress crisis. a share of the federal reserve. it is far from done. richard fisher from the fed will speak. so, there is a lot for the market to focus on and it will guidance a new set of from the governor. story, we are the getting a boost in the united kingdom. they are getting a boost on the back of the story. w m morrison is the number four player and there is a negative return over his tenure. to get together

with private equity. do not forget one of the main institutions that have been haggling for extractions of you -- of value. the prophet is double the estimates. is quitel banking nice. corporate investment banking is a little more lackluster. tweed just ran it through the numbers and i will not or you too much. morrison, welcome to the market makers. i wonder how you get to that number. where it iss trading. >> thank you so much. now, joining us is andrew ladd. he is a manager. it is great to have you on the program. do you feel better the we heard from janet yellen and we have

-- >> there are bigger issues around market valuations out there. cautiousl have a approach because it is still too hot. valuations are too high and you are expecting a correction. >> i think so. there may be a downside. probably has greater valuation problems than europe. if the united states gets the flu and we are not immune in global markets. >> what is the catalyst? andarnings coming in behind

at an opposite level. the forecast for 2014 and 2015 is the same. we need to get out the pencil and make some adjustments. -- >> what are you doing right now? >> we are looking for higher-quality businesses and good return on equities. a decent balance sheet. it is done better through the downturn and some of the companies that are borderline profitable that face significant challenges. >> i asked you about more specifics. stay with us. here's a look at what is coming up. my exclusive conversation. told where he is looking

to spend next. >> we have double. ♪

>> welcome. in london, this is on the move -- onumber television

bloomberg television. on the move.ks manus cranny has been talking about this all morning. it is a bloomberg exclusive. sources close to the situation say that the founding family has contacted private equity funds. the stock price is getting to 3.3%. estimates for the we spoke to the j -- fourth quarter. we spoke to the bank's deputy executive. >> it has been a good year for equityactivity and

activities. ,n terms of fixed incomes global fixed income was reduced. there you worried about recent market facility and the risk from emerging markets? >> so far, the market situation has vanished. in terms of emerging market risks, we have to distinguish why countries. if i take the countries where we situation is probably better. because the dependency on external financing is low, the marketing is clear in

my view. >> she is the portfolio manager. we are talking about the and the valuation is ahead of themselves. what is your take on valuations. it, the think about interest rates are the long end of the curve and the short-term rates is not going anywhere. is both the banks and the insurance sector. you can let it out and it is a decent rate in the three-year and five-year timeline for insurers. theirst rates drop and interest rates become less of a liability. that is an improving environment.

there is the dreaded word of capital. and acidfects .ualities are in view think that is a bit of the headwind for a banking sector. so, preferred insurers over banks. >> demure top three picks.

-- give me your top three picks. and software. think we want to reinvest into these businesses. i'm getting good returns on doing that. facilities are seen as proxies. it is such a regulated market and you see it when it gets cold and the u.k.. profits battling over and utilities remain cautious. >> thank you so much. we'll talk about that next. we're looking at heineken this morning. thecompany release earnings

stock is up 2.9%. at they talked about the global recovery. and, in particular, africa and the asian pacific. we spoke to the chief financial officer a little bit earlier and he elaborated on some of that. >> we made big acquisitions in latin america and more recently,

control of the asian pacific breweries. only about is not consolidation. it is about organic growth and you see that we are building green fields and answering myanmar. we are entering countries like ethiopia. there isy point organic growth and what heineken is doing to break into new markets. it is not surprising that the share price has been underperforming. is there any value in the price? >> we are seeing some change in sentiment. the share price is the biggest in about a year. if you go back and look at what happens, they are underperforming in the stoxx 600

and the food and beverage sector . i was interested to see that rather than increasing the forecast recommendations for abouten, they are talking the potential for organic growth and they are saying that there is a big potential for heineken to bounce back. it is a very effective cost-saving program that will be seen easily in the bottom line. that is a reason to buy the share. >> thank you so much. our europe editor. stay with us for a few final thoughts. andy, we talked about insurance and that you stay away from utilities. what is your take on the makers. it is tough out there because the emerging markets are volatile and that is where they are seeing the growth. >> yes.

as i was saying, strategically, they are doing the right thing and they are saying that they want emerging markets. whereive years, that is it is coming from. europeans like to drink beer and we are not going to drink huge. and emerging markets, your population growth and emerging capital. the consumption will increase. they are doing the right thing. it is causing near-term increase and the management has to write it out for the long-term. not for one quarter or two quarter. we want to be there for five years or 10 years down the road. you get it and get it early.

investmentto the authority and this is the first time that he spoke on camera. we talked about strategy and i was looking at opportunities in emerging markets and like infrastructure. that is your thinking. >> i think if the structure is a great thing for the long-term and if you create something like a new railway or a tollway, if you seek emerging markets, you will get growth and demand. you have steady cash flows coming in month after month. in a similar way, you think about high-speed and the united kingdom. that will be very expensive and, if the usage comes through, that asset could make a lot of money cio.ut a call into the

>> he probably should make the call pickup the phone. are there more developed countries? it is more dangerous. you do not know where the fund is going in certain countries. >> is a matter of risk and reward. you say you do not want to go all into emerging markets and, with any emerging market, you and theisk of change problem with infrastructure is once you build your road, you cannot just take it off and go home. you have to really be sure that you have multilateral funding from the world bank to protect your risk. not face theu will

problem. >> thank you so much. move, it hason the been three years. the earnings report is coming up next.

>> welcome back.

the region narrowed and assets drop. hans nichols joins us with the latest. down and itts were missed estimates. here is the thing this morning. that may be because they are sticking with the forecast. year, 2016 and 2017. the challenge for them is lower demand and the strength of the currency. they are trying to find wells that are out there. they will continue to spend.

in 2012, they were all the way up to 2.5. remember the monitor -- the forker, cf he cannot stand can't find petroleum. they need political stability in the wells that they are drilling. then they will get the production. they will be up. oil companies will have aggregate demand and in europe. >> thank you so much. that was the latest. the share price was up 15.6%. forward guidance is revisited. carney has an updated outlook on the u.k.. all of that is coming up.

i will see you in just a couple minutes.

>> welcome back. i am francine lacqua. we're 30 minutes into the trading day. but see how things are shaping up. this is the market. we are seeing gains across the board. to 0.2%.ting they exceeded estimates. we have janet yellen with a situation in hand.

the dollar is what we are watching out for. it is weakening a little bit weinst the major peers and have reports. it is expected to talk about forward guidance. these are the bloomberg top headlines. asian stocks gained after a surprising pick up. exports rose 10% from one year ago. expected 1/10 of one percent gain. there is speculation that shipments may be resurfacing. the investment authority chief executive says he is happy to invest more. i spoke to the ceo in and ask who's an interview. have regulations and we

have investment publicly. >> the full interview is coming up. says that the u.s. and france are going on a new level of water ration. there was a formal dinner last there is top tech executives. states, a the united hearing lasted five hours and janet yellen made her first public remarks. she set the bar high for a change in policy. us with the joins very latest. the key is continuity. >> continuity. consensus andg that is the take away.

communication and credibility is key. there is a continuity of thinking and of easy street. zero rates for a protracted length of time. , do yoution has been think the federal reserve is talking about emerging markets. >> they are watching volatility and quite frankly, they are not perturbed. that is the take away. they are not perturbed. developments, the do not pose a substantial risk to economic outlook. interesting. of mobilehat 55% demand is from emerging markets and it will have a small impact in what you produce in the u.s.. i caught up with the chief economist and these broad numbers. he said that he is not surprised

that the united states is focused. continuity is the take away. that is the other thing. >> in terms of forward guidance, what did they say about underemployment? >> underemployment is where people have been under a job -- out of a job. people who want more work and have limited hours. considerably more. more than the unemployment rate. here.s she sang that zero percent is well perceived -- way past the unemployment and looking beyond the microscopic number, the excessive compulsive nature of the market, we have to look beyond that. janet does not see bubbles. >> for now. that makes everybody feel better.

let's get to another central bank. the bank of england governor present his quarterly inflation report and everybody will be listening for an update on forward guidance. jonathan ferro will be listening and he joins us now. >> thank you. after six months, the bank of england's first attempt of forward guidance is at an early death. the unemployment rate is seven percent. back then, they did not see it happening until 2016. here we are and it is 0.1% from the threshold. the central bank will have to revise the forecast. this time, they will be pressed quite high. >> what are the options for any change of the forward guidance. >> so many options. at this point, everybody is guessing. she could do what she said she was going to do. put wages very low.

there has been no growth in the last several years. you could use a broader range of data points. there is some flexibility. at the end of the day, the bank of england wants one thing, for rates to stay low. the problem has been how to best communicate the message. they could do something bold and provide an interest rate forecast at the swedish banks do. or you can show the central policy makers in the same way as the fed has been doing for the last several years. then, there is inflation and this is where the news could be. forlong can they keep rates ? that will give you an idea. at this point, expectations are high and the central bank may not need them. >> jonathan ferro with the very latest. later this morning, we will

bring you the report at bloomberg television and the official coverage begins at 10:30, london time. the qatar investment authority is one of the wealthiest. i spoke to the chief executive in an exclusive interview with his first interview ever. we will bring you that conversation next.

>> the investment authority is one of the biggest. they have stakes. i caught up with the chief in the first time he ever spoke on tv. it involves other potential investments. in 2010, i thought that we had done a lot. there's a difference between 2010 and 2014. acquisition, we have done a lot.

it is up 60 or 70%. around 250. and we arere's a lot working. is it an expansion over the next four or five years? performance and the andice of this investment the client view is extremely important. we are really careful about what

the customer thinks. together and we having a clear plan of what we want to do. everyone can work around it. and we have one we have some good time. we care about the customer and the brand. we are a long-term investor that wants to bring value. parties involved.

>> this is showcasing your commitment to britain question -- does this showcase your commitment to britain? taking investment publicly. weekends and we are global. geographically and we will in that and we are working together. josh did -- to achieve our

objectives. quality andut the we are open and ready to work with others institutions with we show ournt and department before. we have value for the management. value andof investment in general houses opportunity and good ideas. we will be happy to discuss it.

>> you always want to be associated with the company names. is that the secret to your success? >> both parties will make it sustainable. it explains our view and that is good for everyone. about the equality and showing resolve. things will not be good. that we can dol it with is not available to everyone and we will work with partners. once where do you see the best opportunity? >> we are forecasting a

europe and the oil is doing fine. and shell could be a bigger story and america. emerging markets could be interesting share. we have global growth. wherever we come upon it, we will consider it. >> we will bring you more of the exclusive conversation with the executive through the morning. the pulse is coming up in 15 minutes and i am joined by guy johnson. we will talk more and get a tose from him that they have look at other investments and did not want to get involved too much. we will talk about central banks and the investment in italy. >> yes.

but she would pay thing is fascinating. as you pointed out, this is the most popular man in london. want tosaid that they make big long-term investments and do not want to get too involved. if you are the coo company, that is the investor you want. mostwould argue that the popular man in europe. a lot of people need recapitalization who knows what will happen. >> a hasty part. we are clearly going to be all over what happens. mark carney is delivering a press conference. hearll be interesting to what he has to say about forward guidance. how do you you've all that into something more sophisticated, given the events that have taken

place. what kind ofout reception you will get. then, we will talk about this application. it is making a splash. it does something really amazing. i will show you that in a little bit. that is assuming i can make it work on time. >> i love it. do not miss this app. guy johnson is all over this. guy johnson has the polls. we have an exclusive for you now. joining us now with the details of his ministry. who are they talking to? the cbcderstand that and the carlyle group are going

to use it. for the moment, there is a bloomberg exclusive in our print edition. if it comes to this, they will be the biggest since 2007. it is the size of the deal that could be the challenge. road that thee morrison family goes down. to get a private equity group to do this deal on their own could be a challenge. putting two together, we the cdc andhat carlisle may be in discussions. they are in a distressed position and it could be a radical move for the family, if they go down this road. >> is this a surprise? >> the whole idea is that back in 2011, the family created

trusts and divested themselves of what a perversion desk of point a proportion of their holdings. of quite a proportion of their holdings. this is a gentleman who is been aboard the morrison gross story and he was vocal in saying that riskannot compete and you losing touch with your customers. do not neglect where the basic business came from. that was from the telegraph. look. it is out there. just seven straight quarters of decline in profitability. phillips may not be the savior of morrison it like we all thought he was. >> thank you very much.

manus cranny has the latest on morrison and here are the latest on some countries -- companies. half of the cards affected are in japan. they havey says that had no accidents. 8.3 billione in airbus has one a has won anon deal -- billion dollar deal. >> the partnership will help increase sales in the market. next, from batman to james

bond. we will introduce you to the man whose business is building passageways.

>> from batman to james bond. every superhero had a super door. for that, you will need to speak to steve.

>> when i started this, there was nothing. it was a secret passageway and you could not get one. there was nobody anywhere. it was not like what i had seen in the movies. it was panic rooms. industryd that this has secret passageways and it is half of all movies. of a security. it is a panic room or a place where they store valuables. i do have ethical concerns. secret door that is so good that the cops will not find it everywhere -- ever?

to convert it to secret switches. when i started this business, i talked to one of my professors and you are never going to do this. these are not mass producible products. they have to be a unique and custom one-of-a-kind project. it takes a great deal of time and attention to detail. myself somewhat of an artist.

a huge project and a labor of love for me. i want to be such that that is .teve humble the original passageway. >> the pulse is that. >> -- next. . .

>> forward guidance 2.0. updatedney will give an version of his policy this morning. we will bring you the report live and in full. >> the french president heads to the west coast to woo tech giants. >> and a bloomberg exclusive. sovereign wealth fund tells us that britain is a great place to invest. >> it is one of the main destinations for investment. we have said this publicly.