>> 17,000. he dow closes above the key level for the first time ever as the u.s. adds more jobs and the ecb maintains its low rate ledge. -- pledge. draghi's new doctrine, the ecb will meet less often. and fifa's scandal. they talk about the ethics. >> you find a number of members executiveics -- committee have to leave office because of inappropriate behavior.

i amrkham to "countdown," mark barton. stay with us. it is 7:30 london time. cityll be talking to the -- the ceo of a smartphone app. then we are joined by brazil's ambassador to the u.k. as his country prepares to take on columbia for a place in the world cup semi finals. change in the european central bank. is it a historic moment or is the ecb catching up with its peers? covered the conference yesterday. he told us what to make of the

move. >> i go with historic. it is about transparency, shaking up the methodology of communication. the art of communication. how often we hear from them. i'm going to go to every six weeks, mark. that is because mario draghi wants to break the markets are racing towards -- >> markets move ahead of every meeting. >> break that expectation. i setally thought that -- up and went, interesting. he wants to break the psychology of market. is that what carney is doing with him i am raising, i am not raising. he is shaking it up. ecb -- werd that the

will have dry runs, whether it consensus minutes. a very important in terms of understanding. do the impact of minutes have on markets? in federal reserve speak, two basis points. let's see with the dry runs are. this is about progress. barclays ran a survey and the ecb came out below the fed at 5.7 out of 10. how there talking about four-year lending program, the tl tr works. get?did we >> i will give you my take. and what i understand. banks uping to lend to

to four years. you have that option. up to each and euros could go into banks -- up to one trillion euros could go into banks. maintain or increase your loan portfolio. then the guys going deleveraging, they have been deleveraging. put in the mario draghi terms of lending. what he is saying is you guys who are deleveraging, if you stop that, we will give you a little bit more loans. if you change your mind and begin to consider what you are doing, we will help you more. he is putting a floor. he is tied to put a brake on the deleveraging move. that is very important in terms of that. was quite optimistic in terms of healthy banks. inand particularly --

particular, giving the structure, the problem is -- this is for all banks, not just the weakest of them. he was with merkel last night. i don't know whether there is anything in that. euro-dollar. if we look at the today chart, look at that. down the euro went. i went -- that had to do with the jobs report. he mentioned to the exchange rate twice. that is a major problem. bank presidenthe at the same conference? what was his tone? >> what do you think it was? lindenbergmberg --

ndeberg bank is hawkish. >> they should not delay normalization. monetary policy has done its part. he is keen on price stability. >> low inflation for too long euro zone the economy. >> i like him. he says it's short and sweet. >> the dow jones closed above 17,000 for the first time ever yesterday. this is being felt across asian market. our man in hong kong has the details morning -- >> good morning. abouty very encouraging the economy in the u.s..

the biggest market is north america for nissan. said, the ecbanus keeping rates low for longer. that is encouraging for canon. a quarter of the revenue in europe. from china, with concerns about the property markets, japan's nikkei at the five-month high. the concern is with recovery in the u.s. consistent am a they raise rates sooner rather than later? that is the only blemish. hence the markets not rising as high as they could be. overall, the dough topping -- dow jones topping 70,000. >> what about htc? investors are pleased it has returned to profit together. the firm is the reason for this.

doing very well indeed. to profits, second quarter. then they can beat estimates. shares at a three-week high. that is encouraging. ask me a sports question. >> i better ask you about the next round of the world cup. the course of finals. is everybody gearing up for their? -- there? for the chinese behind? >> they are behind germany. thinkchinese economists germans think like them. they are supporting germany to win. hitou know, they have been by flu. at least seven players. it could be thomas mueller. they have been hit by bad flu symptoms. france could be looking at favorites. i will be with german friends watching germany at midnight. hong kong time. >> he has done well with his guessing this week after he said

murray would be knocked out at wimbledon. a are getting details on how bank violated u.s. sanctions. court documents and people familiar, jpmorgan may have unwittingly helped the bank height transactions. bnp would transfer funds from a sudanese bank to satellite bank. transfer to jpmorgan without a mention of sudan. jpmorgan has not been accused of wrongdoing. more m&a. this time in the world of food. the world's biggest cordon -- corn crusher is closing in on switzerland's wild flavors. is this all about natural anducts in the desire -- the desire of consumers to consume more?

>> we don't want weird chemicals and what we are eating or drinking. we want to be told things that -- are naturally sourced. an 83-year-old company. it is all about getting fruit juices, all the fads that we are seeing. drinks. the tea infused vitamin and mineral infused drinks. natural flavoring. > flavored beers. >> there was a smile on your face. >> there's a little bit of knowledge there. in over 30 countries, wild flavors have fingers in pies. drinks and pies. this is a country that is not is able to sourced, kick into consumer trends.

this is why companies like archer daniels midland are vying -- they have won out a bidding war against the japanese. they beat the first-ever maker of monosodium glutamate. also our competitor -- a competitor. we knew at the beginning of this year that wild flavors were looking at their strategic options. they thought they might be selling. amd isate that amd -- closing then -- in for 2.5 billion euros. clearly this is the trend and it is working. the bidding war has worked out for the owner. >> who is set to gain from the sale? >> it is a privately owned company. mainly held by mr. wilde himself. 73s peter wild, 70 years --

years old. he's the man behind capri sun. the pouch of orange juices that he has amos lee -- that he famously got mohamed ali involved in the rate -- involved in. that is not part of wild flavors now. but this man is 73. 26th apparently the five wealthiest man in the world. has about $3 billion. that will go up if you cashes in. individual.or the >> thanks, carolyn. see later -- you later. the ecb has announced they were release minutes of their meetings. the new development. ♪

>> welcome back. this is "countdown.:" i am mark barton. better-than-expected jobs in the

u.s.. a record high for the dow. giving investors plenty to think about ahead of the last trading day of the week. during us now, mike. thank you for joining us today. the ecb will hold less meetings and publish minutes of those meetings. should we applaud? this greater transparency? >> the minutes are probably the key thing. the ecb realistically in the next couple of years is not going to be changing policy anytime soon. probably till 2017-2018. the minutes will give us a sense of divisions within the council. this will give us more nuance. that is important. >> it will be easier to predict the next policy decision. >> absolutely. the market has more confidence

in that direction. market take away is the is getting more of a sense in terms of the total size of the maximums mentioned a allowance of one trillion. expects it to take up the first set of operations. or to meet the full operations. the markets to looking at about 700 billion over the next two years. you add that to the qe. the central bank balance shake -- she will expend 12%. >> does that mean volatility stays low? >> you also have the sort of situation that you don't really have any major adverse events on the horizon. one of the big stories people thought could blow up as china. -- is china. bena's authorities in to

controlling it well. when the market tries to identify something that is going cannot seesk, they anything. there is a sense that bullet to it he will remain low. >> 17,000 for the dow is just the beginning? >> the problem with the equity market is that is already stretched. people are looking at diverging market equities. >> they've oust back since the beginning of the year. emerging market asset classes. >> they are still cheap relative to the u.s.. moneys where the smarter is going. >> where is the smart money going if you are a currency investor? the dollar index has been stuck in a narrow trading range for of 10d -- best part months. does yesterday change anything? mario draghi said rates will stay low. we have maintained our extended pledge. it is the $ that matters now.

got is the data yesterday confirms that q2 should see a sharp bounce back. we are not at the point yet where the fed is going to prepare the market for tightening. that is a 2015 story. the market is being very selective in terms of currencies. we like during -- sterling. there's no doubt that the u.k. is the middle of an internal rate about when to raise debates. it could be the end of this year or early next year. they are members, singing from the same head sheet. >> if you look at the relationship in terms of interest rate expectations and sterling, we think the euro 7750 -- can rise to within the next 12 months to 75. lots of potential for the pound

to rebound. in pound got severely hurt 2007, 2008. we were trading at 60. we have some way to recover now. >> you mentioned charlie dean. are you in this year, a rate hike? or early next year? >> epic is probably going to be later this year. they will also be very careful thevoid the market, shooting in terms of rate expectations. this is the critical message they will get across. it is gradual, don't worry. report.on the u.s. jobs a surprisingly big beat yesterday. mike from idea global. stay with us. ♪

>> welcome back to "countdown," i am mark barton. back with us is mike. thanks for sticking around. jobs yesterday. down to 6.1% unemployment in the u.s.. is it time for forecasters to tweak their productions on when the fed will hike rates? >> there has been tweaking that has occurred.

some have wondered whether the first hike will be brought forward from the summer of 2015 to spring. the third part of the report was the earnings data. are looking closely at the relationship between the labor market and wage inflation. we are seeing better labor markets are not automatically the leading to higher wage inflation. the phage -- the fed are waiting until wage inflation picks up. >> is that the right policy? >> economists would argue no. if you do see a true trend higher in wage inflation, it is little bit late. by the time you come to tighten, it takes another 12 months or so. but this fed once to wait for clear evidence.

you can understand it. this cycle has been unusual in that you have seen a lot of the hangers from 2008 -- hangovers from 2008. that could be making the relationship to friend. they want to see the proof of the pudding. towards be inclined summer, 2015. >> is the fed behind the curve or not? some say it is. the markets are way behind. will that gap narrow? >> i think the gap will narrow. but it will not occur until we get into 2015. the fed will keep the sentiment in the nine -- benign. voicese are dissenting who are going against the grain. of dissenthe start within the fed? >> the fed will have some

dissent. not the degree of tradition in terms of openness that exists in the bank of england. therefore most people will go with the yellen view. that is good enough at least through the remainder of the year. that is why we think the the quantity will dominate rather than the fed rate expectations. 2015 will be a different trading world. >> it is. the bank of england could be hiking. can we find ahead or is it too early? >> is too early. >> when do we start making our moves? october, november, the market starts thinking about 2015. we see some risk off, u.s. bond yields rising. the dollar rising. for now, it is risk on. selectively. pick the ones that have lagged behind were the ones that look out of context.

we don't like the swiss franc because it has not had a big shakeup. we think that is vulnerable. we are in a different world. not the safe haven world anymore. >> mike. -- ♪

>> the readjustment. overall, fx volatility is officially the lowest since 1992. will trade higher, will the market reassessed when the federal reserve should hike rates? they want to look at the swedish krona. cut rates by 50 basis

points. the world is not expecting that. work is family saying that this currency, that is not exactly what i wanted. krona,e go, the swedish the right notes. morgan stanley say this is one of their top currencies on their list. we are talking about the repeat, back to you. >> barack obama, the german chancellor have agreed to coordinate u.s. and european steps against the country. according to an e-mail statement from the white house, if russia doesn't de-escalate tensions in ukraine, the powers may pledge more potential costs on russia. jpmorgan may have unwittingly held bnp transactions. this week, the biggest bank rate

to $8.797 billion settlement. hid billions of dollars in transactions involving sudan. the money was transferred to jpmorgan without any mention of the country. jpmorgan has been accused of any wrongdoing. in brazilas collapsed killing at least two people and injuring 19. the collapse took place on a main avenue that was being expanded for the world cup. when the project was completed in time for the event. merkel isnd, angela said to pay an official visit to china will stop the focus of the trip, the seventh two china will be economic cooperation and trade. david tweed joins us from hong kong. welcome back. merkel is heading to chang tzu

which of course is the capital of dishes one province in western china. why there? >> well, it is not actually a state visit that she will be honored because she is not the head of state. the chinese treat it like a state visit. one of the things in the that they must visit one of the other cities outside of beijing. from what i understand, speaking to diplomats, there will not be any deals assigned. volkswagenl go to a plant. she will visit a training facility. it is actually really symbolic what she's doing. , they're trying to develop these mainland towns. them -- for two million people there. it is one of the second tier chinese cities. what they're trying to do is to get more investments from

companies, european companies which tend to cling to the chinese coach because that is the most economically developed .art fo they will have the head of gw. this will be checking out to see in the future. >> does she like her spicy food. >> it is funny you should ask. with the thing that she will do when she is in town is she is going on a tour of the local markets. then she will visit one of the best restaurants. yes, apparently she will cook the dish. this consists of chilies. i love that.

she has to be used to having a few spices on her tongue and she is going to eat it. carved after the dining, there will be the the policy and she will need she's thinking -- xi jinping. click there will be the signing of -- a billion euros worth of deals. we don't know what is coming up there. we will wait for that. there will be a discussion about diplomacy, about regional issues. i'm sure that angela merkel wants to know what china's position is with regards to its assertion in the south china seas. more importantly, germany is looking very carefully at the relationship between russia and china. particularly, as some are arguing that the u.s. and the eu , their actions in ukraine in a away are pushing russia towards china. we saw bad gas deal signed, it

was just last month. they also signed a foreign affairs cooperation agreement. ,- we saw on that deal signed it was last month. in the un security council, china has been abstaining from any votes to deal with the ukraine. that will be definitely high on her agenda. >> a quick question, are you settling into life in hong kong? do you miss london? >> i love it here. i just put in offer on a horrendously expensive apartment. 15% below the market price. and they accepted it. >> see you. if you think your morning cup of coffee is expensive, think again. sells kilos of coffees for tens of thousands of dollars.

why the hefty price tag? the luxurioushat morning coffee is all about. >> we are purveyors of the most exclusive coffee and we are the only ultraluxury coffee. and're the chairman cofounder. this is 10,000 dollars a kilo. about 60 pounds in cap. this is 300 pounds at cup. people think about it because we are exclusive. russia is very big for us. europe is very inc. for us. it appears with such a small family business, a lot of our clients are people that we have known for a long time or the friends or colleagues of these people. we will make your coffee for you.

the question is people say it is growth. it is like anything in life. we have something quirky, something different. and it is something very special. it is like finding champagne, truffles, caviar. this is the caviar. >> alaska both coffee i had, 2008. -- the last cup of coffee i had, 2008. image taken a battering after his quarterfinal loss?

plays its first ever world cup quarterfinal today against brazil. columbia is given a 29% chance of reaching the semi finals. in france and germany laying in the other quarterfinal. police are broadening an investigation into world cup ticket scalping. it might improve the possible involvement of a fee for member. fee for arrested 11 people in

connection with the world cup scalping ring. this ball is more aerodynamic than its predecessors, it travels asterisk, speeds of up to 25 meters a second. this year's tournament has seen 154 goals so far, just short of the record of 171. corruption allegations continue isfollow the governing body paiding claims that qatar bribes to host the tournament. we spoke to the government committee about the scandal. current culture?

>> the culture was one, they saw themselves at the family. they think they know best. they would not have such a sway as they have in the world. of overduces an income a billion dollars from a single product which is all -- which is of course all they have got. d as world leaders wherever they go. their culture was not modern, not the standard of ethics that you need. ifathe allegations are that f is simply mired in corruption. those are the allegations. what do you say to that? >> he cannot deny that it is an extra ordinary state of affairs when you have a number of executive committee having to leave office because of

corruption or been involved in inappropriate behavior. is, but have they done it. they have not demonstrated that they have got the cultural willingness to embrace this change. >> do you think that set blatter is willing to take the changes --ded to clean up fee fo cleanup fifa? >> there something that he said which reallyago shocked me. when the allegations were reported, in its newspaper about what had been happening in qatar, his response was to say that it was a racist allegation.

leaders in the african associations. that really isn't taken this seriously at all. to try to dismiss this. it doesn't demonstrate the commitment that you expect from the top man in an important organization which has to demonstrate it is clean, transparent, ethical. >> that was peter goldsmith. he was speaking to olivia sterns. wondermedia, it is no that wimbledon attract some of the biggest sponsorship oppositions for brands. as we had to the finals, what are these athletes playing for the size the title? thank you for joining us. what is it about wimbledon? why is it to the proposition. >> from the commercial

perspective, it has everything. global appeal, global tv audiences. pressed each, heritage. interestingly, it is one of the few tournaments with strict sponsor will involvement. very carefully, the involvement. >> you're not involved with companies. >> is almost like the olympic effect. it is such a big global tournament. that is very few and far between. to be assisted with the brand likable than compared to the french open. >> perversely, it involves companies end up spending more money, they pay more for ultimately less. it is not cluttered.

in some ways, it is more appealing. harder.them work two levers that association. >> how do you do that, how do you leverage that? >> i cannot rely on tv exposure. 317 million viewers and a hundred and 90 countries. names aren't everywhere. >> a have to activate. advertising. that is what they are paying for. this is not about media exposure. what you are paying for is a credible association with a global brand. >> all of the brands that associate themselves with wimbledon, would you say it is fair to say the premium brand. >> absolutely, and wimbledon will polices very quickly. premium brands want to be associated.

that is wimbledon to me. >> they see the power and the value of longevity sponsorship. they have been involved for, since we can both remember. of course, they have the beauty of product placement. that is very hard to find. that product is tangible. >> that is one. >> ibm has some branding. .ery carefully policed those companies will be paying disproportionate amounts, if you like, in comparison to other tournaments. for that small amount.

and they have to add value to the event. wimbledon into the digital age. >> let's talk about players. andy murray is gone. the beauty about murray as a brand is that his value, which is all very natural, his behavior and determination. brand, it might've been affected. he is the winner, in a lifetime,

in a generation. , that creates instant longevity. the second thing, he is british and his values are our determination. we love the trier. and he has got that in spades. >> in wimbledon has been wonderful because of the emergence of some of the younger talent. he beat rafa nadal, he is 19 years old. are we seeing the emergence of new brands, and new tennis talents? >> the canadian, the women's finals, seems to be the new darling of women's tennis. >> it is interesting. these young guns coming through, there is always that story. i think it is a great thing for the sport, some of the younger

players seem to have new information. again, sport is a long game. they would have instantly doubled their commercial appeal. short term. they have to continue to perform on the pitch or on the court. because if you don't perform on court then ultimately that is what affects you. >> what nadal said, it is easy to win when there no pressure. >> absolutely. and if some of these guys have to the profile of a move in, have almost doubled their sponsorship interest. but that can be quite short term. coming up, tempers are flaring ahead of the world cup

quarterfinals. the brazilian coach lashes out of its critics.

>> look who has turned up. take it away. collects this is something that has been rolling on for a week

or so. it is an daily paragraph, the .acebook scandals they were manipulating people's feeds and their emotions. >> i wonder if you get a bit of schadenfreude. yorkshire don's it's a bicycle

clips. the tour de france will be in yorkshire over the weekend. the twothe two maps and stages taking place. they just contain some apps for the wonderful french take on yorkshire-based names. there is one place which sounds funny. this is in west yorkshire. >> i'm not going to get hate mail. the brazilian manager, very far. head of the quarterfinals tonight against columbia. all his detractors, he was at the brazilian media. here is the stat.

columbia, i was 14 years old in 1991. >> more on draghi when we come back.

>> 17,000, the dow closes above the key level as the u.s. has more jobs and ecb maintains its low rate ledge. draghi says the ecb will meet less often and publish minutes for the first time. member of thel, a independent governors committee speaks out about the groups ethics in an exclusive interview. >> it is an extraordinary state of affairs when you find the number of midi -- members on the executive committee at allegations of corruption's or inappropriate behavior.

>> hello, welcome to "countdown ." i'm mark barton. >> i'm anna edwards. plentyth bloomberg for of good interviews. at 7:30, we will speak with the ceo of a new smart phone at at promises to organize your life and give you hours every day. morning, we are joined by the brazilian ambassador to u.k.. his country appears to take on colombia for a place in the world cup semifinals. >> change at the european central bank. the ecb has announced the introduction of the minutes and a change in the sequencing of meetings. or is the ecbe it simply catching up with its peers? manus is here to tell us what to make of the move. i guess it could be both,

historic and a catchup? >> it is double-edged. it is historical. whatnk when you look at mario draghi is doing, i think it is trying to emulate mark carney. >> we love disruptive. >> i think it is disruptive. -- this isvariety what mario draghi wants to do, he wants to break the cycle of expectations, his words. he wants to break the self-fulfilling prophecy of expectations. ok, that is an interesting line when he was speaking yesterday. it is about shaking things up. about a wonderful comment the possibility of minutes. he said it would be absurd with enough transparency in the marketplace that the minute should be locked up for 30 years. this is about bringing transparency.

it is about communication, transparency, disrupting the sanguine view of what is coming in the markets. with the fed speak, they miss the market by two basis points. he also left the door open to qe , saying everything will be considered, stop hurrying us. we will wait and see how things go. he left the door open to more interest rate cuts. >> did he give any word on the nuances of the four-year lending program, the nuances? >> the methodology is there will be a much finer a two-day economic minds than i do go through the details. for me, it breaks down to simple deliveries. lendinghe active programs, and they will probably be able to maintain or increase their lending on the portfolios and it will probably be constructive. the second most interesting aremic is those banks that saying we have to deal average

and reduce lending, i'm rating this as a mario draghi put. what he is essentially saying is, look, guys, if you stop decelerating the level at which you are lending, if you put a floor under it -- >> don't accelerate the deceleration process. >> correct. >> don't accelerate the deceleration process. >> just don't see that anymore. you know what you have done, you have taken me down the road. i was explaining it perfectly well. i think it was pointed out the salient points. particular, the program is particularly attractive to those with a dynamic lending performance. this is for the stronger banks. >> the dynamic it will appeal to is those reducing their balance sheets as an opportunity to pau se. >> and the bundesbank, was at

the same conference last night? german resistance to the minutes or resistance within the ecb has certainly been one of the topics of conversation. >> the ecb, who has railed against to? the germans against the ecb, or the germans against the periphery? or is it the ecb is stepping beyond their mandate? they spoke very clearly, very classic german message. the ecb should not delay in normalization of its policy. consideration for government finances. i wonder if he is partial to 30% or would go for a rate hike going into 2015. that is the whole point about minutes, isn't it? he was focused on inflation. longw inflation for too can harm the euro zone economy. >> the take away from this,

these minutes will allow us to look at the thinking of 28 members. that is a step forward in progress. accelerate, decelerate, you have completely destroyed me. >> thank you, manus. thehe dow jones closed for first time above 17,000 in new york. knockoff is being felt in asian markets. john dawson is live in hong kong. john, how has this been read into the asian session? abovearly, the dow jones 17,000, the u.s. jobs come extraordinary figures, very strong, further evidence of the u.s. recovery. are saying the ecb is keeping lower rates longer. it is encouraging. japan, one third of the revenue in the u.s., good news, quarter of its revenue in europe

against the goodness. a lot of japanese exporters and chinese depend on the u.s. and european markets for their growth. they are doing well. is with concern, anna, the figure so strong for jobs in the u.s., you may see rates had higher sooner, causing a little cap dinner for the chinese market. they are pulling china down, concern about the market being a bit toppy and concerns about the slight possibility of recession. that is the feeling today. it is a good foundation, but did not see the rally you would have thought airing in mind u.s. jobs, 17,000, and the ecb. >> let's talk of something more corporate, investors for htc commented this morning? >> yes, they are robbed three consecutive quarters, three consecutive quarter losses come expected to turn it around.

second-quarter net income beat estimates. shares are at a three-way tie. their smartphone released back in march is paying off, a tight field with the smartphones these days. they have also cut marketing costs, producing innovative new phones to compete with the apple iphone, samsung galaxy, and their shares are saying, thank you very much, indeed, you are doing well, keep it going. i know that you like the sports questions. to notout, we are down many teams left standing in the world cup. eight, whot down to is everybody lining up in your part of the world? >> it would seem there are three chinese economists in the last week. all of them are supporting germany. , they are also supporting germany because they believe the germans and chinese think alike.

how you interpret that, not quite sure, but a lot of chinese have german face paint, german flags. it is likely quite easy in hong kong. >> interesting. >> and german fan supporting germany as well. >> sound sensible. maybe they throw the best parties, make the best beer. angela merkel is also heading there. >> any beer in our house is not german. >> oh, of course. >> but the french influence in mark's house. he was going to tell a story from our past. iq, john dawson, in hong kong. thank you, john dawson is, in hong kong. and $8.7 billion settlement with authorities. according to court documents,

jpmorgan may have unwittingly helped bnp transfer transactions to an account maintained by satellite bank. the money would then be transferred to jpmorgan without mention of sudan. jpmorgan has not been accused of wrongdoing. >> warmer jurors and acquisitions. the world's biggest corn crusher archer daniels midland is said to be closing in on switzerland's world favors. caroline hyde, what is this about? thinkingly, if you are it's the weekend, maybe i will have a flavored beer, maybe i will have a daiquiri, when you have those drinks, the reason is this company, wild flavors, could be behind the flavors you the fruity, some of

looks from the strawberry daiquiri because it's all about -- >> you have mark's number. >> line them up. >> why not, mark, you wild child. you have food ingredients across 30 countries. what this is also playing into is the trend for natural ingredients. think of what we have seen now for tea-infused drink's, all naturally sourced. wild flavors made the first ever german naturally carbonated fruit juice strength. it is now present in 30 countries. because of this trend, this is why archers daniel midland wants to expand overseas. on theso want to cash in desire to feel we are putting better ingredients into ourselves and want to have natural realm at aerials. we are drinking drinks and eating food. interestingly, it paid up for it. his is 2.5 billion euros. -- this is 2.5 billion euros.

that is two thirds higher than the initial price tag in january, when we knew the owners wildthinking about selling flavors, looking at strategic options. there was a bidding war, particularly with a japanese company. >> who was going to benefit from the sale of wild flavors? it is a private business, part owned? owns 35% and they will be cashing in if they get that 2.5 early in euros. a 73-year-old gentleman, a family held company, his fame was made -- this whole company was linked with the foil pouches. >> which are so impossible for children to open. >> without spilling them all over. >> that's the problem, if you're squeezing it. comment ali did not have this problem because he was --

mohamed ali did not have this problem because he was one of the spokespeople. pri sun is the car greatest in the world. 526th wealthiest billionaire the world. thank you, caroline. >> coming up, mario draghi revamps the ecb communication. says itour next guest will be the key to keeping markets informed. ♪

>> first. bloomberg. >> time for today's company news. an austrian bank says they will have a record loss because of debt charges. they predict provisions will rise to nearly 2.5 billion euros this year. opening its compliance academy as part of the overhaul of the culture. the academy will work with cambridge university's business school to provide technical and

behavioral training to employees globally. we will bring an exclusive interview with barclays' had of compliancy. and the italian banking association says the country's lenders are able to sell -- fill capital will emerge from the asset quality we exercised. >> welcome back to "countdown." i'm mark barton. >> i'm anna edwards. it is friday morning. ecb president mario draghi announce the bank will stop publishing minutes from 2015. ,ur next guest is the founder and he joins us for his assessment of the significance of this move. julian, great to see you. is this a landmark event, playing catch-up? >> it is a very big deal for the

ecb. it has not done so so far, so you have to ask, why not? i think it's because there has always been concerned bankers could go on national lines, they could be under pressure from their national government and other national sources if they published minutes. there was also a big premium for the ecb on consensus. reaching a decision. not everybody might agree at the starch, but they would at least to agree on the decision. it could move forward at a time when the euro area was much more diverse, different ways of analyzing their economies. >> central banking minutes don't always tell us who said what. >> no, and it's interesting the ecb has been careful not to call them minutes but to call them accounts. it remains to be seen how much information we will get. in my view, with the ecb there

has been quite an issue whereby they would have a press conference, and it was not really that clear. press conferences are good in principle, but as we have seen with the fed, the definition of a considerable period with janet yellen, it is not always clear what the central banks are trying to say. then you would get various speeches to try to work out the underlying just. i think if you are publishing the accounts, even if you cannot actually pinpoint exactly with the opinions are to the individual names, you will probably get a more clear idea of the framework, particularly if you move into the next monetary policy meeting. >> and getting a clear idea of the framework. how about the framework that is the ltro, the target ltro? we have more details on the benchmark of linking these four-year loans to real economic lending. are we in the blind anymore or not? >> i guess it is a little more

clear. the ecb published documentation. you are welcome to take a look at it on their website if you want to. >> that's why you are here, to save me that trouble. >> i don't know, many pages. >> too many. >> i think the basic point is the ecb is kind of keen to get banks to actually lend more and is offering very attractive anding facilities to offer fixed rate, four years. that is very attractive. 0.25%. i think the difficulty they have is some banks are in the d everagingg mode -- del mode, and some of them need to do that, because they need the support even if they are deleveraging. others where they think they have overcome. >> you can get funding if you do not accelerate the reduction in the loan books and keep it

stable thereafter. >> yes, that's right. veryi think it is a conflated system. personally i would have thought it would have been better to copy the bank of england lending scheme. that is a little unusual, but it is at least rather straightforward from what we have here from the ecb. >> julianne, thank you very much. stay with us and we will get your thoughts on the recovery in the u.s. and the jobs report when we come back. ♪

>> welcome back to "countdown." i'm anna edwards. >> i'm mark barton. catalyst economics with julian is here. more jobs were added than estimated, the rate keeps coming down, great story on bloomberg saying the fed is behind the economists,y some time to start lifting the right protections -- projections. those that rise or not? >> we have the u.s. jobs rate at 6.1%. most economists, including the fed, with say the structural unemployment rate is five .5%, possibly 5.25%, so we are

heading down to that at a rapid pace. once you hit the structural unemployment rate, the question becomes, well, you should really be at your natural right of interest -- natural rate of interest, which in the united states in real terms may be between one percent and two percent. you have a nominal interest rate close to zero and you have inflation, running about 1.5%, you actually have a negative real interest rate at the current stage. there is a big gap between where you are with the real interest rate and where you need to be in just a few quarters time, which might be conceivably by the end of the year when the unemployment rate is 5.5%. >> is inflation going to be the story of 2015 or before? >> this is the difficulty. little bit recalls a with the bank of england chief economist said recently.

he was basically saying, the central bank should be on the front foot when it comes to raising interest rates a little and early, or should it be on the back foot so it has more time to react. in the case of the united states, the argument would be if you are on the back foot, you do not what to change interest rates is still -- until you see evidence of higher wage inflation. we are not there yet because wage inflation is just two percent in the united states. the front foot argument with say, ok, we are not seeing high wage inflation yet, but we will start getting it at the current growth rate if it's maintained. we do have a monetary policy that is too easy. the fed is actually tapering still. we shouldn't forget that. but i think for next year, i would imagine myself around june would be the time for the fed to start raising interest rates. >> julian, iq so much for joining us this morning. >> coming up, could one click

save you hours of prep time for your next meeting? >> and dinner and diplomacy in hong kong. find out what feels will be on the table during angela merkel's state visit to china. ♪

>> welcome back to "countdown." i'm anna edwards. let's head to manus cranny for the fx check. >> the debate about where the dollar goes, and how is the market pricing that. this was the moment when we sell the unemployment report. you had just had a conversation thatjulian and his call is rates could go higher by june of next year. volatility in the foreign exchange market is the lowest on record since 1992. the debate is due use the dollar

as your funding currency and purchase the indian rupee? that is one of the propositions. the indian rupee is on the move, its biggest move as moody's comes into focus, the budget surplus -- sorry, the budget deficit being contained. there is a little bit of growth. this is the carry trade in 2014, actually purchase indian rupee, trumping the indonesian rupee. it is the trade of choice. , they cuth krona their rate by a half percent, shock, awe, and the swedish krona moves. morgan stanley says continue to sell this currency, 7.02 in the fourth quarter. ikea. >> -- back to you. >> a warning to russia, u.s. president barack obama and german chancellor angela merkel have agreed to coordinate step

against the country according to an e-mail statement from the white house. they say of course it does not de-escalate tensions in the ukraine, they may pledge more cost on to russia. jpmorgan may have unwittingly helped the mp hike transactions. france's biggest bank agreed to a settlement for violating u.s. sanctions. bnp hid billions in transactions involving sudan. some of the money was transferred to jpmorgan without mention of the country. jpmorgan has not been accused of any wrongdoing. a bridge has collapsed in brazil, killing at least two people, injuring 19. collapse took place on a main avenue that was being expanded for the world cup, but the project was not completed in time for the event. >> too busy to prep for your meeting? there is an app, low-down claims professionalverage

three hours per day by streamlining data from your other smart phone apps. david senior is here to tell us how it works. does it really, could it really save that much time? >> indeed. >> what is the idea? >> low-down is a business service that automates meeting information in the context of a business meeting. people typically prepare for meetings by going to different websites, mobile app services. if you have three meetings per day, it can take an hour per meeting to prepare. what low-down does is automate the preparation in an instant and beautifully prevents it. >> it saves me from having to go from linkedin to city services, twitter to check all of the behind-the-scenes social media information about the people who will be at the meeting and how to get there. to the the young exec season ceo, we can all relate to

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30 days, that for it is five pounds per month subscription service. rolling live,eks real-time information from meeting to meeting. after 30 days, that reverts to andmeetings, your current next meeting, and then the subscription service which is the ina-pp purchase. >> and every two weeks it's updated. what does that mean? >> its real-time information. other competing services access databases to gather information. they are quickly out of date. what low-down does is real-time access to freely available, publicly available information from the internet and presents it instantly. london-based business. you are not just selling this in london. >> it is available globally on the app store as of two weeks ago. we find that the early adopters

are in major metropolitan areas -- london, new york, sanford cisco, ottawa, major metropolitan cities. -- san francisco, ottawa, major metropolitan cities. was a wonderful movie about an operating system, artificial intelligence, which runs the lead character's life that he falls in love with. that is sent to you. is this the next level? , sort of the scarlett johansson-type a.i.? >> that is a kind of association you might like. >> absolutely. we are a step over google. people habitually go to google to get information. we're saying in the context of a business meeting, you don't have to do that. it is done for you. on theind of like siri iphone when you ask it a question. it is focused on one specific task, non-sentient meaning it does not have its own logic.

it is a computer program that provides the information instantly. >> will it have its own intelligence soon? >> who knows. >> david, thank you very much, giving us the lowdown on low-down. >> german chancellor angela merkel is set to pay an official visit to china. the focus of the trip, her seventh two china, since she has been in office, will be economic cooperation of trade. david tweed joins us from hong kong. she is heading to the capital of the province in western china. why there, david? part of an is always angela merkel visit, it's not a complete state visit when she comes because she is not president, but the chinese treated as a state visit. as part of the protocol, not only beijing is visited but also another regional city. this time it will be chengdu in

the citroen provosts. it is interesting because while we do not expect any deals to be signed, it is really a nod to xi jinping, the president, because he is trying to encourage western, ernie's -- western companies and chinese companies to invest in the inland parts of china. there already are some german has aies, volts wagon plant careful stop bashing fulks slant-in has a plant there. angela merkel will visit that volts wagon plant. it is interesting that she is taking a whole host of other executive. siemens has been in china for centuries, at least a century, and it is interesting she is taking them on her trip to chengdu so they can look around and maybe they might decide to make investments. is certainly high on her agenda, the first place he visits. sesays one, of course, --

chuan is known for its chiles. >> apparently she is going to go to visit a market and do some shopping. we know that angela merkel likes to do her own shopping. we used to see her in berlin shopping. and she will go to a restaurant and be taught how to cook come out chicken. -- kung pao chicken. is and mouthed chil numbing pepper. she will be cooking the dish, so will be interesting to see how the chefs judge her cooking. i imagine that she will get 10 out of 10. >> i wonder if she is some sort of master chef. after dining, there will be diplomacy to be done. angela merkel will be meeting with xi jinping. will be on the agenda? >> one of the things they will discuss is the regional situation. that means international situation.

obviously, angela merkel will be interested in knowing about china's views on its recent assertiveness in the south china chinad also in the east sea, where you have these islands that are contested with japan. one of the interesting things i she will probably probe and see how that relationship is going between russia and china. some people are arguing because of what the u.s. is doing, and europe i should say, doing in the ukraine, pushing russia back, sort of pushing russia towards china. interesting for her to actually get some idea of how close that arrangement, that potential alliance is between china and russia. anna? >> david tweed, thank you, joining us from hong kong. up, the top corporate story that you cannot miss for the trading day. stay with us. ♪

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>> i'm here to talk about banking was coming eastern european banking was. keep an i on the austrian bank. it has made big pushes into eastern europe, which is backfiring. it has backfired since 2009, romania and hungary in particular have seen load repayment problems since the downturn. today we are getting the group saying they could swing into a loss of as much as 1.6 billion euros. provisions that have to make in hungary and romania are 40% of where they originally forecast. the reason, rising bad debt charges, in particular. there are new rules in hungary. they're forcing banks to refund loan fees. at has hurt. and romania, it is all about pushing bad debt reductions. we could see the stock fall of erste falling 10%, 15% even. >> coming up on the program, the

dow jones closes at a record high. we will look at the market open, the final of the week. we will be back after a short break. ♪

>> welcome back to "countdown." i'm mark barton. >> i'm anna edwards.

jones closed at a record high, above 17,000 for the first time yesterday. will there be a spillover into the european equity markets? we are joined by brenda kelly for more. looking at the futures of european equity markets, no might be the short answer to the question. some of that already factored in? >> i think that is the case. we will see low trade volumes with the u.s. being closed for independence day. i think the investors have been waiting some time to see the footsie retarget -- to see the ftse retarget those highs. there are some catalysts that could send the ftse back up and threw it. >> it was 1999 when we had the highest level of the ftse. now 6865. >> the cyclical sector makes up the majority of the stocks. we have seen a six-week high for

manufacturing utility. china had the decent jobs report, the extremely dovish draghi, and it comes together in the sense that we are more or less likely going to see the ftse go higher. i think we will see a rotation from the dividend-paying stocks into the more cyclical sector. we are seeing that in the u.s. at the moment. i think the spillover is due to come to the ftse. the main issue is the strength of the pound, which could be something that will temper that. >> you talked about the positive correlation between the pound, dollar, and the euro-dollar. why can't we ignore that, brenda? >> i don't think you can. you have a dovish draghi, yet there are great expectations they will hike interest rates in the last part of this year. despite the fact that we have a very dovish draghi, he has a load of measures in place with the exception of quantitative easing. the euro is still not any lower

than it was back when he first made his announcement on june 4. we are looking at a six-year high, and i think it's more a function of the u.s. dollar we are seeing the euro weak yesterday. there really wasn't a reaction to draghi yesterday. >> we have the correlation between where the pound and the euro goes against the dollar, but both against the dollar, when we have different trajectories for the interest rate expectations. >> exactly, and something has to give, whether we see a correction. we are kind of heading towards this particular extension. we could see something of a pullback. but i don't think will be a permanent fixture. is 173the target for me or 173.50. >> beyond the methodology of the long-term loan within the ecb yesterday, what was the takeaway?

rates will stay low for an extended time? >> obviously more complicated, a complex explanation as to whether or not that will actually work. i still see the markets holding out for quantitative easing. until we see that, we will see the euro-dollar in a tight range between 1.35 and 1.37. i think the pivotal level for the euro is 1.3740. if we break through that, we could rally towards 1.38 or 1 .39. >> the dow jones going through 17,000, talk of whether the s&p 500 will go through 2000. is this all in the hands of the fed right now? to ae still vulnerable shakedown as a result of the fed giving us a heads up on interest rates at some point later in the year? >> the fed got us this far and i think the markets are a little

overextended, a little frothy. but we have been thinking that four or five years, trying to find a reason for the market to fall back. we will probably see the retail investor come back into the market. that could be the beginning of the end. stocks ande from the bonds into the more cyclical sector, the more risky assets. that is something i think is due to happen. investorok at the aaii sentiment survey, we saw bullishness increase by 1.3%. it is still below the long-term average. >> below the long-term average in a particular survey, yet all-time highs in the market. >> exactly, which makes you think we are forming a base near the top with a further extension before the pullback. >> and volatility picks up when we have that pullback? , theat is the red light volatility being at the all-time lows. , butust the equity market there are a few warning signals at the moment.

i feel we still have a little further to go before -- not the crash, but the correction takes place. >> and mergers and acquisitions could take us higher i guess. interesting trend with m&a, but the companies acquired and those doing the acquiring. >> it has been an interesting dynamic. you normally expect one to do well and a pullback in the other. >> saving money on taxes. >> exactly, and i don't think that is over yet. when you see the competing interest from the u.s., i think m&a will continue, more than likely in the pharama sector. i don't think the astrazeneca deal is over yet. i don't think the story is done yet. that could be a positive force on the market, particularly in the u.k. look ate u.k., when you europe, brenda, it is the underperforming market. will it play catch-up?

compared with italy, it is up 15%. >> i think we have already seen good results. it should do well. >> brenna kelly, chief market strategist at ig group. >> i will see you soon. >> i will see you after the break. ♪ . .

>> welcome to "on the move." i'm anna edwards. we are moments away from the start of european equity trading. our markets editor manus cranny and caroline hyde. >> we are into her whole little world which is minutes and clarity from the ecb. to draghi's ambition decouple the expectations every time the ecb meetes. every time you will get action. s objective, to be the disruptor. back to craroline.

>> it is almost the weekend. will you soon be sipping on a flavored beer. the flavors you taste may be from wild flavors. it may be snapped up by archers midland. i will be back for more on the d eal. >> that is what we are watching this morning. european equity markets opening up for the final trading day of the week. without the united states. for thosependence day who celebrate. let's check in with manus cranny. >> the u.s. is on vacation. to liquidity zircon thing these equity markets perhaps a little bit less. equity markets dipping ever so slightly. down. factory orders the dow broke the big psho