>> paying up and pleading guilty, bnp agrees to a fine of 8.9 $7 billion to settle the probe into u.s. sanctions violations. china gets a boost, manufacturing expands at the fastest pace this year. mark carney celebrates his first anniversary at the bank of england. we will look at what is next for the governor. welcome to "countdown" it is 6:00 in london.

it is a record fine for bnp paribas, france's the guest -- biggest bank has settled the probe into sanctions violations. how does this stack up against prior fines? >> it dwarfs everything we have seen before. presumed they would have to cough up and provided $1.1 billion. >> we watched it as the estimates rose and rose. >> it is an historic moment in terms of what is happening in the united states, in terms of their approach to banking and if you break the rules. it is the first guilty plea on sanctions. socgen -- socgen, still under investigation. this bank went to elaborate

lengths to per heal -- conceal prohibitive transactions. think of sudan. issue is thisthe -- crux of these uses this. -- thepliance department compliance department acknowledges the commercial and historical relationships. they do not stand in the way of business. >> they did this despite knowing the sudanese government supported terrorism, engaged in and hasghts abuses, hosted osama bin laden and refuses the united nations intervention and are for. -- darfur.

>> they were told they were being monitored. and still, a number of breaches continued. market is expecting it, too. they will take a provision of over 5.5 billion euros in the second quarter. there excluded from dollar clearing. be prohibited mainly in the area they breached, portland gas transactions -- oil and gas transactions. thank you for coming in on this tuesday morning. she would be staggered by the size of the fine -- should we be staggered at the size of the fine? >> is a bit like the credit

suisse filings. we got used to it. that is what the market will say today. there is a conference call at 7:00 with the chief executive. >> doesn't matter to the bank -- does it matter to the bank? >> of course. it will take them off one percentage point. holding back on the dividend, of course. what does it do to the reputation? you do not want that kind of thing when you are trading on your reputation. >> talk to us about the to or de fraud.- tour how hard is it to win new

business? does it impact the bottom line? are we being myopic? >> it is the same situation we saw with credit suisse. they had so long to deal with it. we have been talking to all of our major clients and explaining the situation. they would have been doing the exact same thing. people will be sagging, -- people will be saying, is there an issue of us dealing with these guys at the moment? >> i am looking at some of the responses from the finance minister saying the manner in which the u.s. has treated should serve that should set a much broader tone. a strangeite

statement. when a bank has been levied with breaching sanctions. --they have been convinced they were doing the trade out of geneva in most cases. the fact they were clearing them in the amount states. -- in the united states. where did they come up with the $10 billion -- where did they come up with the 10 billion? it is all about discovery. they are trying to get back the cash. there is talk of whether the french will allow the tax. -- ais not just another number plucked out of the air. >> will the ban encourage other

companies to stop using dollars for international transactions? that will be talked about. there will be a lot more talk about where the euros sits in the circle. barclays, bnpse, paribas. is it media hype that the u.s. is being more aggressive in their policing of banking? is that a nice story to help us write a headline? >> you should ask jamie dimon. say this is disadvantaging european banks, the u.s. banks have been hit just as hard. these banks are getting hit

really hard. all of those things you mentioned, we had a hell of a party and now we have a hell of a hangover. this the high water mark or finds, -- or will the fines get even bigger? >> they could. when i think about how shocked we were when hsbc or find, we thought it was a big number. we could see a lot of those big numbers -- >> how do you differentiate between the banks? the haves and have-nots. barclays, the likes of bnp paribas who have not managed.

>> we no longer exclude litigation. this is not one offs. this will continue. a lot of this is related to capital. deutsche bank has many issues to deal with. credit suisse seems to have less. upngs suddenly keep popping in this hangover that we were not expecting. ,> as you look at the landscape where do you want to be? where should be be investing? we talked about wholesale banks, very difficult to touch. retail banks are looking in much

better shape. know what will come out of our wholesale banking sector by cover. -- that i cover. popular when we downgraded them this year. >> you are downgrading not based on litigation. the list of execution of the new strategy. saying, were morally institute the new strategy -- when will they institute the new strategy? it is a dangerous place to play. >> who has the bigger reputational damage? >> i think for all of the big

banks, the reputation will have to be rebuilt. when can you start with a clean slate? >> chris, thank you. under his belt as the governor of the bank of england, we will bring you analysis of mark carney's first 12 months. former boe deputy governor will be joining us on "the pu lse." guaranteeing growth in europe. the ecb has done its part. what next? ♪

>> twitter is said to have agreed to by the mobile advertising company targets people on their mobile phones or tablets with ads for things they have already expressed interest in buying.

recalled 8.4 million cars in north america for defects including ignition and electrical malfunctions. the company has called back more year.0 million cars this it expects to take a charge of his much $1.2 billion. the japanese games maker rose 11% in tokyo trading. the company is seeking partners in china. chinese lifting a 13 year ban on video game consoles. welcome back to "countdown." it has been a year since mark carney took charge of the bank of england. when he arrived, hopes were high. than thed more luck

three lions in brazil? >> mark carney would be england's star striker. when he stepped down for the first time, the bank of england's new captain faced a tough task, but his fans were cheering him on. almost straightaway, he he launched his first attack -- forward guidance. it links interest rates to unemployment. unemployment went down faster than a desperate player in the box. mark carney moves the goalposts. a few months later, he moves them again. the u.k. economy is top of the league with the highest growth in the g7. he may need to go on a counterattack once again. central banking, it is a funny old game.

>> joining me now is our next guest. how would you assess mark carney's one-year tenure as governor of the bank of england? >> he is a good worker. success.it it is a >> has it been as much of a success as some of his other central bank colleagues around the world? mario draghi has announced some significant measures. janet yellen has taken over for ben bernanke. where does he stand? aggressive policy, which is bringing success. it is what we need at the ecb.

>> the structural, the investment that is needed. >> to be frank, it is everything. we have everything. yes, we do not have this in europe. at this date, it is at a standstill. x yesterday's inflation number highlight the need for further measures down the line? likely to have additional measures. it will not be enough. ecb is putting in lace the right framework -- in place the right framework. it is not enough to kickstart.

>> will be italian prime minister's push to allow a bit to meander around the edges, will that give countries like france and italy room to boost growth measures? to reduce unemployment? is that the sort of policy we need, patrick? >> he has a lot of credibility. in italy, he has been putting in place the right structural reforms. in france, a little bit has done -- has been done, but a lot more expect it. -- expected. he is ahead of the curve. >> how much more can european asset markets move?

down by half as percent. spanish tenure bonds have fallen -- 10 year bonds have fallen by 20 basis points. where were they move from here -- where will they move from here? the only way -- if we have productivity gains. it is why we do remain positive on italy and spain. even germany. >> where is the value in stock markets globally? the s&p 500 has risen for six quarters. up.stoxx 600 is the asia-pacific is that a

six-year high that a. stocks have had a good run into a 14. where is the value? >> i would make a structural difference between u.s. and europe. what we need is a further catalyst. continue to invest. furthert have investment and the quiddity. >> -- liquidity. >> france and germany, what is the score? >> 2-0. >> thank you for joining us today. asia stocks heading for a

six-year high today. we are live in asia, next. stay with us. ♪

>> welcome back. the japan survey was released earlier. john dawson is in hong kong. quite strange.

the headline figure was pretty weak. the markets jumped. the nikkei by 1.6%. manufacturers rose 1.5%. at headline figure came in 12 of 15, disappointed -- disappointing. the reason why you rose so much was because markets reacted in kind. the capital expenditure beat estimates. money going into the company's that are actually spending it? here is more reaction from an

economist this morning on my he is also upbeat. >> the headline number is disappointing, but it is a minor disappointment. the further details, some positive numbers. the biggest positive is the capital expenditure. they have revised up the capital expenditure plan for 2014 as much as six percent. the profit estimate is also revised up. we do not have to worry too much about the headline. the pmi was bang in line with estimates. 51 is a positive. >> john dawson in hong kong. up next, israel launches strikes in that gaza strip after three kidnapped teenagers are found dead. ♪

back to "countdown." let's head to manus cranny for the fx check. but itsee dollar rising, is a slightly different story in terms of what is going on here. look at the three-month view and you begin to see what i'm talking about. we have an overall project re on the dollar. is thec surprise index lowest since may. yields in the u.s. are really not rising. they're not going in the direction that the market would anticipate.

has a dollar more or less comes lower, you are seeing a slight move against that. you are seeing the euro coming back on the day. on the day, it is bouncing off of its lows. this is what mario draghi does not want turkey does not want this dollar to interfere. he does not want that contagion. he would be happy to see the dollar go much higher and the euro much lower. dollar.i on aussie a nice spike higher. the reserve bank's leaves rates unchanged for the 11th month in a row. the aussie dollar is at a three-month high. 0.9 461 is the 20 month high. break that and you have good old-fashioned stop losses on the trade. can it make it? barton, back to you.

it will pay an $8.97 billion fine. the agreement with authorities also requires that certain executives leave the bank and bars the bank from u.s. dollar clearing operations for the next year. mattei renzi -- sergio marchionne spoke over television, giving his views on what an italian presidency means for europe. >> i think a great opportunity is for europe to turn the page. there has to be a fundamental reform of the european agenda. i think renzi has the right attitude and we should support him in that process. so far, we have been stuck in a lot of rhetoric. i think we need to move it on and renzi will do it.

is really security forces have carried out airstrikes in the gaza strip after the bodies of three missing teenagers were found in the west bank. israel believes its teenagers were kidnapped by members of the military group. aviv.itors live from tel elliott gotkine. israel is vowing that hamas will pay. mark.y much so, no one doubts the resolve of prime minister netanyahu and the israeli defense forces to exact a price on hamas, which it blames for the abduction and murder of these three teenagers as they were hitchhiking inside the west bank earlier this month. according to palestinian reports rats --d i high our aretz -- wey ha'

did see more than 30 targets hit by the israeli defense forces in gaza overnight. that is been in response to a barrage of rockets that have been launched from gaza into israel since sunday before his cabinet meeting last night. that's never said the teenage boys were kidnapped and murdered in cold blood by beasts. hamas is responsible and hamas will pay. >> are we on the brink of another israel/gaza war? >> it is hard to say. it is a very precarious situation. israel feels the need to show that a price must be paid for this kind of murder. hamas does not want to show it can be pushed around. i don't think both sides realize an all-out war between the two is not in either of their interests. it does not mean we will not have one.

giantshe home of luxury lvmh. paris, the home of fashion has been disrupted by a new breed of tech startups to help luxury companies embrace the digital age. this event is being hosted in the city. our european business correspondent caroline hyde is there. caroline, what is this all about? >> good morning, mark. called hackerst on the runway. it is all about getting luxury companies to embrace the digital world. your venture capitalists here, new start ups. it is all run by a company called the family. they get workspace for startups. . i am joinedrking

by one of the brains behind the family. give us a sense about this event. to slow are luxury companies embrace the digital age? >> the family has a goal to invest in this industry. we noticed one year ago a lack of luxury companies. we asked ourselves why a country and france has no startups not many at all in the luxury industry. this to bring together these two worlds that are now very opposite. these brands see the internet as a threat and i think that is a mistake. we saw it with music and spotify. there's no guarantee that will not happen to luxury, even if now they are making a lot of

money and being profitable. we have talked about an english company named bert berry which is gotten into the digital ryace quickly -- named burber which has gotten into the digital space quickly. this case is very fascinating were in crisis when they decided to go to digital. they used online space to compensate for their lack of presence off-line. there is a big opportunity for a -- on the internet. industry works in general. >> talk to me about working with

companies in france. fight theving to status quo, the government and the policies that they have at the moment? >> to be honest, the family is based on wherever you in the world. if you have enough people around and focus on delivering growth and work, everything will be fine. wherever you are. france is a complicated country that also has a lot of opportunities. innovativeu do is has a really good chance in this country. a lot of people feel frustrated. that is the opportunity of the family. we don't care what is happening in france. we focus on the growth of our company and we think that doing will come from

anywhere. now, you can be in france, set companies somewhere else, have people in other countries, develop globally. --is not because your french you are french, that you are ance. allsing on fr that makes the family and france very competitive in this talent war. that is the only thing you really have to care about right now is this talent war to get global markets. >> tell us about the talent that you are employing right now. >> we are getting companies that would otherwise not stay in france. >> it is growing very fast.

they are getting lots of good deals right now in france, especially something like 50% of the revenue is in the united states, but they are in france because they have the cheapest engineers in the world to do this kind of stuff. sense of the cost difference. that itwas telling me costs a hundred $50,000 to employ someone. >> good people in france cost year.-60,000 a not so much opportunity there in the u.s.. creating fidelity inside your company can take a lot of time. in france it is granted because if you're just a start up and there are only a few of them,

you get lots of traction from good people because that is quite a unique environment. >> one of the founders of the family, a company that is helping about a hundred 50 startups. it is shaking up the market in france. we are starting to see the green sheets of companies coming and staying. much more.back with we're talking to the cambridge arehel company and how they now having to go off-line as well to embrace growth, now in more than 120 countries. >> twitters $120 million move. will users by an? we will learn more next. offers, canrejected the ceo persuades his

shareholders? -- persuade his shareholders?

>> time for today's world cup news. germany beat algeria 2-1 to secure its place in the quarterfinals. all three goals were scored in

overtime. this sets up germany to play france on friday. it is the first meeting between these two countries since 1986. luis suarez who is expelled from the world cup has apologized for the biting incident. says he deeply regretted it and will never again commit such an offense. he was banned from nine games for uruguay based on the attack. will be available to play for his team. he missed the last two matches with a strained left hamstring. he is the second leading scorer in the u.s. team. a victory for the u.s. team would mean a quarterfinal place for the first time since 2002. is 6:46k barton and it

in london. is set tologging site acquire the ad tech company cap tapcommerce for $100 million. who are they? basically, if you have ever had this experience when you're shopping online and you see something but you're not sure if retargetingbuy it, will send you ads on that thing. >> how much is twitter spending on it and why is it buying the company, sarah? they tell us it is about a hundred million dollars, which is pretty big for twitter. what twitter is trying to do

here, i'm sure you have heard about their problems with user growth, they're trying to make a case to investors that you're not just buying a company that advertises to people who use twitter itself, the advertisers have this wide array of to look at how many users they have acquired. >> as you say, it made an acquisition in october and pub. t mo >> they are trying to round out this mobile advertising offering. the more important thing for them might be on the consumer side. you have had issues with making .roducts

replace a group of executives. they shook up their management ranks and now the person leading engineering is a person who has had experience in advertising. we will see if they can do with their done in advertising for consumer products. sarah.ks for joining us, speaking to us live from seven cisco. -- from san francisco. abbvie has already been rebuffed three times by shire. what is he going to achieve in london? >> i think the difference this time between this and astrazeneca is there is no big

lyrical will and no tabloid find astrazeneca writing these stories. astrazeneca writing these stories. shareholders have to decide -- a lot ofe prices talk about valuations in the market in high anyway, in general, across the board. shareholders have to make a financial decision. are they going to want to continue to be a shareholder in -- see itsee it out pay out over time. >>, jews it now 46 pounds per share? -- how much is it now, 46 pounds per share? people are expecting a higher

offering. i think there is a lot of talk and analysts have written on this. if you look at the data, you can come up with ways in which ab bvie can raise the offer and still make this deal. this will come down to what shareholders tell them. see forhave to wait and that. >> is it about tax? or are they a good fit? what is the strategic logic here ? there are many ways they could make this look like a good strategic fit. it wouldn't be the first item on the list of why they were doing it. and a couple of years time they to take this tax rate down 13%.

that is what these guys are doing. that is what every pharma company is doing. , there are not that many that would make sense. shire is one of them. here's an opportunity to do that. it really allows them -- the sizes right, everything is right about them. >> richard gonzales has a visit to london this week. murray makes his way into the wimbledon quarterfinals. we will have more on that story and the others in today's newspaper section. ♪

>> welcome back. 6:54 in london. elliott is in tel aviv. take it away, sir. in thee's only one store newspapers in israel today and that is the finding of the bodies of the missing teenagers who were up to did while they were hitchhiking in the west bank earlier this month. you can see a picture of the three teenagers. it might make out a pile of

rocks, which is the location. that is where the bodies of the teenagers were found. israel is very much in morning. they're also angry. that is seen in the response with airstrikes and the like against hamas. , elliott.ou manus, what have you got? when you give out invitations for party, do you ever hope that someone famous turns up? david cameron did. viewers on a global stage, you will recognize on the kidman,nd side nicole emma watson and benedict kummer cumberbatch. three and 50 representatives of the arts were a souped-up event at

number 10. all the invites that all the invites they wanted to turn up on the right, instead they were the people on the left who showed up. can i say to you what the press pack tweeted? i've seen bigger stars on my tv at 130 in the morning. -- at 1:30 in the morning. thanks, manus. ferguson mind games. andy murray progressed to the quarterfinals at wimbledon yesterday. beate kevin anderson -- he kevin anderson. after the game, murray revealed he had a chat with former manager of manchester united. the words talking technical

stuff or tactical things, more mental sorts of things, how you respond to tougher tight situations. fergie, the master of mind games. continues in the next hour, stay with us. ♪

>> bnp speaks to shareholders. they will explain how it will pay its nearly 9 billion -- nearly $9 billion fine for the relation. celebrates his one year anniversary at the as the head of the bank of england. ♪ hello, welcome to countdown. i'm mark barton. >> and i'm an edwards -- i'm anna edwards.

a record fine for france's bnp ibas. our markets editor manus cranny has more details. more.eck of a lot nine times more than the bank had put aside themselves. up until now, 21 banks have been $5 billion. this comes down to how much profit they earned from breaching sanctions. -- they got $9 billion. some are still under investigation. bear that in mind. a couple of major issues at play. the compliance department actually said to parts of the -- that goesa that

to the crux of the attorney general's issue with part ibas. >> even in the words of one senior compliance manager, they hosted osama bin laden and refuses the united nations . tervention in darfur >> they went on to continue with transactions. that goes to the heart of the issue. onwhat impact will this have the bottom line? >> we will get a conference call . we will keep an eye on headlines as they come. i am sure you too will break them. you two will break them. the dividend will be paid, but

that is $.50 less than the market was looking for. my sources tell me, we have read a lot that they might sell some assets. my sources are saying there is an american retail asset in california called the bank of the west. it doesn't really fit in with the overall strategy at bnp par ibas. it doesn't fit in with where they want to go. will they stick their 2016 target? certain employees have left. . quite serious reputation they're out of the dollar clearing system. that will cost him $40 million. it is not about that, it is you have toct that say i'm sorry, sir. i can't really do that business for you. fraud labeltoured a

doesn't help much either. >> they're putting pressure on u.s. officials throughout the process. , the sanctions activities of the past, the authorities have basically penalize them for activities of the past and protected the future. utility -- the ability to punish toks should encourage others use the euro as a mode of trade. will this be the sting in the tail for the u.s. authorities if this happens? paribashe french allow write this off against tax. the tax them on the profits on the way in. look, i don't know whether that is going to happen. one would imagine for international banking relations, that would be quite a slap from

the french to the u.s.. >> it would mean the french government giving up on tax revenue as well. we don't know. manus, thank you very much. john dawson is in hong kong with an overview. what is been the reaction to the latest confidence data about manufacturers? >> positive, mark. , also stocks like the komatsu,facturers, t fuji industries rising. this is the first dropping quarters in six quarters. the four cost -- the forecast was 15, and disappointing.

increase in big capital expenditure. japan put money into the system and is actually spending it. >> the headline numbers are disappointing, but i would say it is a minor disappointment. if you look at further details, there are some positive numbers you can look at. when you look into capital expenditure growth, they have revised up the capital expenditure plan for 2014 as much as 6%. their profit estimate is also revised up. i would say we don't have to worry too much -- the companies are actually spending it. the key issue going forward is if they increase wages. people with money in their

pockets and spending power increases, that has not happened yet. they are spending on capital equipment. that is crucial. >> was been the investor reaction? >> negative. above 50.in it is quite encouraging. nothing dramatic, but as small as expected. it does give credence to the fact that china is on track with regards to growth. >> quick question on andy murray. he was through to the quarterfinals. hasn't dropped a set. is he walking his way to the title? >> you know he's only talking about this because there is that football competition going on somewhere in the world that he has lost interest in. >> i don't blame him, actually. i won't say it.

he is a great coach in roger rasheed. i hate to say this, i fancy dimitrov to win. sorry to say. >> i can't believe you said that. >> his 23 years old, he has baby fat for august reasons. i think it could be his ear. >> maybe john is just more objective. he has safely kept away from the medias they'll strum in hong kong. >> john wilson in hong kong. earnings before interest, tax depreciation and amortization. that is above estimates. revenue coming in just shy of estimates. -- you're talking

about growing the business in line with, or slightly ahead of the online grocery market. hasn'tompetition creased. reference to their morrison's business. we will continue to delve deeper charlesse numbers with adams of bloomberg industries. bnp p chief executive of pay and- degree to almost $9 billion fine after a guilty plea. he has spoken on a conference call and express deep regrets over past misconduct. he says new procedures are working effectively. those procedures will be put in place in united states. he is speaking to investors right now. is expecting the same amount

for share price as last year. the solidity of the bank is not in question. the bank is solid. we are paying this dividend. we deeply regret our past misconduct and new procedures are working effectively. speaking after the guilty plea and a fine of almost $9 billion. >> they will have to change were they do business, won't they? can't be clearer in the united states and they can't inar transactions initiated oil and gas trade in certain parts of europe and asia. we will look for details on what that will cost estimates. said up to $40 million per year. >> with a year under his belt as

a governor of the bank of england, we will give you a firsty of mark carney's year. interview at 10:30 london time. >> italy prepares to take the reins of the eu presidency. what policies can we expect from the italian prime minister?

>> time for today's company news. twitter is said to have agreed tapcommerce, twitter may pay almost $100 million for the purchase. gm has recalled 4.5 million cars in america. the company has already called back more than 20 million cars this year. jim says it expects to pay as $1.2of as much . llion for damages

pathwaysdex is seeking into china. --y already have tieups china's lifting a 14 year ban on the videogame console. i am mark barton. >> and i am anna edwards. today, italy takes over the european presidency. which policies will prime minister matteo renzi are your ties in his six-month tenure? -- utilize in his six-month tenure? he wants to model reforms on the italian economy on what germany did. you might have to ask for some leniency on some of the eu rules

in exchange. >> the problem that italy is not germany. majorityt have the oeder hat in german parliament. he will push for more leeway in how we interpret the existing framework for fiscal governance of the european union. he is not pushing for a revision -- >> unsc change in the 3% deficit? is just potentially giving leeway to countries who are doing structural reforms in how muchrunning -- >> does that improve the growth prospects, that flexible interpretation yeah, does it improve the growth prospects for the likes of italy and france, for instance? >> nobody knows. if if you ask renzi at this

point which kind of reforms would like to do, if he were given this leeway, there is no agenda. for time until september to write this up. country holding the rotating presidency to determine the policy agenda of the european union now is much more limited than it was in the past. >> because they're more members? >> because the council is taking a much bigger role. --top of that, the italians the outgoing commission is not going to take any kind of decision or side. we wait until november, at the very least for the new commission. >> what is the best that renzi can hope for when he delivers his roadmap to the european parliament tomorrow? -- weis a sort of

implement existing fiscal framework. most importantly, especially on the domestic side, it is about immigration. italy is facing a huge challenge with waves of migrants arriving from africa. it is a huge humanitarian problem. italy wants more support from its european partners. also in terms of sharing the burden created by these emergencies. we have another 30 migrants found dead in the hold of a boat. what detail are we going to get on that? -- athey actually try and policy of patrolling the seas. they want to pass that over to a european body to share some of that burden. >> that operation has been

and rescuing immigrants. 5000 arrived in italy. it cost around 15 million euros a month to run. renzi would like to see the european union shipping in. see whether they are pressureccept more from the parliament. >> energy policy. do you think that they will manage to make leeway in natural gas and renewable policy? difficult. in the context of what is happening in ukraine, we don't see a rapid solution to that crisis. at this point, specifically the moment in which the commission is on the way out to make significant inroads in terms of energy policy is very limited. he could try to push for that kind of chapter and story, but i don't think he will be able to

achieve much at all. >> stay with us. we would take a short break.

>> will come back to "countdown." the budget deficit is a bit of a red herring, isn't it?

is the debt level that is the worry in italy, which is the second after greece. 1.9. >> how on earth do you get that at level down? >> that is the mission impossible at this point within the existing rules and everything else. .ou are right the focus on the budget deficit is pointless at this stage. the focus should be on reducing the debt burden and about growth. not much talk about that. there's is an idea that eventually reforms will never -- whenever they will be passed, will promote growth. it is about implementing reforms. that is where the focus is missing at this time. >> why is that a missing part of the jigsaw? you'd have thought that was the

hurdle. you're saying in the break that there are reforms passed that have not been implemented on the ground. >> it is because of the complexities. the moment in which you pass this in parliament, you need legislation which can be passed by the 11 ministers and regions to implement it. that is where there is an issue. the other one is about the courts, how the courts interpret and understand the new rules. implementation is a real challenge. are still laws passed that have not been implemented. >> we have talked long and hard before after he arrived. has he been emboldened by the european parliamentary election? he was the outright winner when you look at the european leaders. has he been bolder than that? does it mean an early election

is less likely now? >> it is less likely. spending has greatly increased thanks to the outstanding performance of the european parliamentary election. also by the fact that when you look around at the opposition, there is not much at all happening. election, ian would've told you there was a significant risk of early election in the spring of next year. that risk is on a downward path. still, he needs the support of berlusconi to get done what he wants to get done. to -- it is not going to be an easy walk. that is why he needs to spend much of the time in rome issuesg on the mastic rather than in brussels or berlin. >> he has a busy domestic agenda. in the midst of all that, they are on the other side of the argument.

italy does not want to see any further sanctions implemented against russia. very concerned about moving to level three, meaning targeted economic sanctions. russia is a major trading partner of italy. it is an important energy provider. italy together with germany, bulgarians and so on is part of the country that is resisting the idea of sanctions against russia. renzi doesn't have an experience as a minister. to do he set out everything he wanted in 20 seconds? what he hash of been promising would be great. >> thank you very much. >> coming up, has the man heralded as a rock star of central bankers to livered? not according to our next guest.

we will look at mark carney's first year as governor of the bank of england.

>> welcome back to "countdown." let's head out to manus cranny for the fx check. >> we are breaking through the highs of 2014 for the aussie dollar. oft was the original high 2014. we have made up to there and come back off the highs. a double hit for the aussie dollar. chinese purchasing mandate -- purchasing managers index. it is a solid number. the reserve bank of australia

left the rates unchanged. a look at the dollar index itself. we are off the lows, that is one day. if you look over the last three months, you can see that the momentum in the dollar index is indeed, and has been downward based. what you have is an eight week low. , economicitigroup surprise index is a lowest since may. what you're seeing here is a included.o be it is just not happening at the moment. what mario draghi wants. he doesn't want to see this week dollar because it doesn't have his overall situation on his currency. >> these are bloomberg top headlines.

bnp will pay an almost $9 billion fine. italy takes over the eu's rotating presidency today. prime minister matteo renzi is expected to use the presidency to emphasize growth over austerity. he gives his views on what an italian presidency means for europe. >> is a great opportunity for europe to turn the page. i think there has to be a fundamental reform of the european agenda. i think all of europe needs to look at a different future. where been stuck in a lot of rhetoric. i think we need to move it on and renzi will do it. forces haveecurity carried out airstrikes in the gaza strip after the bodies of

three missing teenagers were found in the west bank. israel believes its teenagers were kidnapped by members of the palestinian militant group. prime minister benjamin netanyahu says hamas is responsible. since marka year carney took charge of the bank of england. expectationsed, were high, rather like those of the english football team at the world cup. it has he had more luck than the three lions in brazil? has the answer. >> mark carney would be england's star striker. when he stepped out onto the pitch for the first time, the bank of england's new captain faced a tough task. his fans were cheering him on. almost straight away he launched his first attack, the introduction of forward guidance. that is a policy tool that links interest rates to unemployment. not all his teammates approved. unemployment went down faster than a desperate player in the

box. six months after announcing his guidance, mark carney moved the goalposts. a few months later, he moved them again. fast-forward to today and the uk's economy is top of the league with the highest growth in the g7. with the economy heating up, he may have to go on the counterattack once again. central banking is a funny old game. gibson -- financial consulting director and former joins us. what do you make of his one-year tenure at the bank of england? >> it is impeccable. he has achieved all this without doing anything at all. >> you think forward guidance takes any the credit? >> no policy changes have been enacted.

it is inconceivable to me that the economy is taking off because of a few words. a mystery,ople it is for us it is very straightforward. >> what is that, danny? was holding the economy back was the consumer was trying to pay down his debt. consumption was very weak. >> you don't go along with the argument that with forward guidance and amount of tension -- attention is put on the government and this new policy, all are on the media gave consumers and industry an idea of where interests rates were going -- interest rates were going? rates are zero in japan in the u.s. and the u.k.. clamor fort a great higher interest rates.

with forward guidance did do was governors -- to buy policy. he played his part in making sure the government induced more people into even more debt, which he now says he's quite concerned about. >> how concerned are you by that, danny, going forward? very close to that already. all this talk about whether the new house price bubble is totally missing the point. we never left the bubble are the house market. we never reduced our debt level to even where it heaped in 2000 seven in america. >> based on all caps of metrics, houses have fallen. long-term problems

of insufficient supply being met i artificial boosts to the amount, either through interest rates or directly through funding through the help to buy scheme directly. >> once we have a normalization of money policy we will see house prices fall relative to income. >> or incomes rise relative to house prices. that is what the government and the bank of england have stopped from happening. they cut interest rates and actively intervened. >> now we are in the next ross s. process.ear of the stand?o you >> rates will rise. it is not a very tough call when

the market is preoccupied. firstimportant when the light comes. -- fromolicy per sec if a policy perspective, we may raise rates quicker. they certainly won't go far enough to -- >> do not believe that? do think they will go beyond 2.5%? >> i believe the central bank will do what it said it will do. whether the rates should go higher is a different question. we think sterling is vulnerable to correction as a consequence. >> would you make of the ecb's macro credential tools? >> good luck. >> do they work? >> is or any evidence of them having worked anywhere else?

did some analysis on canada and said the last three rounds were associated with lower mortgage credit growth and house price growth. >> and yet, household debt is still climbing. it is levels and growth rates. you are on top of a mountain. you might not go much higher, but you're on top of a mountain. what about this world tax idea that you proposed? how would that work? we propose that is we did a lot of calculations on what interest rates would have to do to stop the housing market and allow the market to correct. it would have to rise to at least 5% at which point the economy would keel over. fiscal policy is going to have to play its part. the first thing to do is help to buy and apologize to the

country. they would have to do something more to actually quell the housing market. the bank of england has played , which isn helping helped the buy to let sec to her take off. workw would the world tax then, danny? >> all levels. they're trying to bring things -- if there is that weakness, you need to bring demand back into light. that is not rocket science. >> thank you for joining us. it is great to get your views this week. >> 7:40 coming right up. hackers hope to revolutionize luxury in france. we will tell you more about that

next. ♪

>> welcome back to "count on." >> 7:43 in london. paris, the home

of fashion, are being disrupted by a new breed of tech start up. of its kind event is being hosted in the city. our european business correspondent, caroline hyde, is there. what is it all about? runway, that the is what the event is called. it is all about trying to bring together the new digital stuff. electric companies that basically aren't quite getting it yet. of the cambridge satchel company started online and they are now shipping to more than 120 countries, raking in millions of pounds. let's speak to julie. sense of what online means to you. what you say to luxury companies

who are nervous to start embracing online sales? was the only way we can really engage in get traction really quickly. to have the ability to reach literally from my own home the whole world. it was never for us about importing or exporting. never the kind of division we had. it was more about selling online directly to my customers, where i could communicate with them so directly and find out what they and be were they happy, able to react to all that and come out with what for them we think would be the perfect daughter. outlet? to twitter how many followers do you have? when people order on the website, you pay really close attention to those e-mail addresses? they tell you where people work

and if it is a place you want to engage with. social media is a big one for us. about 23 or 24,000 twitter followers who really like to tell us why they have the bag. we will go back to them and say he's a keeper. facebook, youtube channel where you can show for very low overhead your new collection or some ideas you have. it is just a fantastic way to engage in real time with your customers. are you learning anything an intent to design? >> we stray a little bit off path, our customers will say something. they have been fantastically supportive as has the whole

blogging community. they had been so key to us. the blog has been amazing. what about someone like vivienne westwood, a key designer. to she liked the idea that you're still in touch with the community? >> she really likes that. ethicalian westwood, standpoint was very important. she doesn't have to. she is such an icon. for my customers in my community, we tried to make a bag that everyone can afford. so giving my customers a chance to own a bit of something that is from the more luxury, the high-end market, that is a really interesting proposition. >> give me a sense regionally why you are growing the most.

>> about 65% of everything we do is online. then we deal with the best apartment stores in the world. china has really taken off. that is going incredibly well for us. america is very strong. my husband is american, so it is great to try to make a bit of an impact over there. hopefully, by conveying some of just a start from humble base will inspire people that have access to digital to give it a chance and do something amazing. idea of what you company thatthe says you reduce the allure of luxury. they want to keep their brands to himself and keep it to word-of-mouth or more basic

marketing in terms of magazines. what you say to this? >> digital is a unique opportunity to try to really talk about what the brand is about. or can have a glossy advert some kind of amazing tv campaign, but people want to talk about it. talk about it with than the people who actually understand a brand and live the brand. this building is in the background because this is where the brand started. that is the kind of detail that people want -- love and they want to engage. >> people like to go in and tangibly touch products. shops thatpick the are right for our brand. it is about a half and have between our own

brick-and-mortar stores and others. i would say you can change your life with 600 pounds. i never borrowed any money. i never went overdrawn. >> how much did you learn? >> 13 million last year. pounds and at, 600 kitchen table and five and half years later 13 million in 120 countries. something to inspire. up, we take a deeper look at the numbers behind europe's highest valued retailer. stay with us.

>> welcome back to "countdown." >> we've had some breaking news this hour about former friends -- french president nicolas sarkozy. has been detained in an alleged influence case. this is 24 hours after his lawyer was held in an investigation of a peddling case against the former french president. >> magistrates have 24 hours to

decide whether to charge him. >> it might be a bit of a difference between detained or held and what the french call it. >> online food retailer is in a bit -- is a bit of an anomaly. it has the lowest analyst ratings. and its on ocado >> ings -- >> a little worse on revenue. i think this is the first set of earnings we have had with their actually had the contract with morrison's as part of the earnings. people didn't quite know how that was going to shake out. much wasn't said how contributed, but it obviously did. to be expecting that bid

profitable even though their own business is not yet. and theirt exactly own business may just have become marginally profitable. ,hey did reduce marketing costs which has helped. there is no doubt. one of the reasons for the valuation is this idea that ande is a tech company having sold it to morrison's they will be able to sell it to someone else. >> is that a big deal? it seems to be because shares are down from their highs in february. >> the idea that they will be able to sell it on the world is becoming a little less clear. we are seeing other startups. amazon has not bought them. post has an interest in their own online delivery service in germany. we are not necessarily seeing people buying in to the ocado model. i think that is one of the other points, that all the collectively are growing faster

in the online channel. thank you very much. "on the move" is up next. ♪ .

>> welcome to "on the move." i am anna edwards. we are moments away from the start of equity trading. with me is a manus cranny and elliott gotkine. >> it looks like we finally got the number and retribution. the stock is higher. closed out from dollar payments for up to a year and bonuses will not be impacted and that is the message from the ceo. i will talk you through all of the deal later on. let's get back to elliott.

betweenon arising israel and palestine after the bodies of three missing teenagers oh who were a dubbed it and murder while -- who were abducted and murdered while hitchhiking. the eyes on gaza. details of all the the growing tensions in half an hours time. >> thank you very much for that. despite a focus on the banking sector and big finds and the geopolitical that drop, what we see from the equity markets that are just opening up? let's get a detailed look with a manus cranny. on the equities, they should turn from reddit yesterday, a little bit of a green up 1%. europe is trading at the highest since 2000 and nine. on an earnings basis, 15 times. -- since 2000 and nine. the top 10 ey