>> decision day for the central banks. will the russia crisis disrupt mario draghi's outlook and is the bank of england on the verge of a split? president bands agricultural imports from countries imposing sanctions. the biggest bank settlement in history. bank of america is said to be having a $16 million fine. sprint walks away, the company's earnings are breaking now.

welcome to "countdown." breaking news crossing the bloomberg terminal from deutsche telekom. caroline hyde is here. --basically in line with basically flat on last year. it is in line with where analyst had been expected. sales were tiny bit weaker than had been expected. analysts wanted 15.2 billion euros but sales flat on the previous year. this is a company facing intense pressure in terms of prices. they have stronger competitors.

it's going to up the ante in terms of pricing competition. the chief executive has vowed to revitalize the company, particularly the european operation. the biggest setback of course all over the news yesterday is the u.s. unit. >> what will happen after sprint walked away? >> sprint walked away because of concern about regulation. they were looking to merge the number three and number four players in the u.s. >> the regulator came out with a statement yesterday evening saying sprint has to focus attention on the competition in the u.s. and they are quite happy with three or four players. the question is does the valuation of t-mobile go down as the deal goes forward?

>> that is what the holder of spread over in japan was trying to focus on. showing that they cannot compete with verizon and at&t. if dish willting come up. with a look at t-mobile u.s. and will american mobile even come in and have an analysis, or what will happen to the iliad bid? buy a 56%looking to stake. >> but it is a lowball bid. >> it didn't have the regulatory risk. >> maybe that brings their offer up a little bit higher.

>> we understand that actually t-mobile u.s. is going to pooh-pooh the iliad deal and say it is not enough. they will see if anyone tries to join them to raise financing and go for a bigger price tag. element. fascinating how much does deutsche telekom want to rid itself of its u.s. unit? they have managed to steal market share. >> 900,000 in the first quarter. >> the reason for that growth is because they are undercut during. -- undercutting. this is the struggle for deutsche telekom. t-mobile u.s. is starting to win out but it will cost them a lot in future earnings.

they would like to focus energies in europe. at the moment sales and profits meeting analyst estimates. >> that's one set of results. that thet had comments german bank second-quarter net income missed estimates by almost a quarter billion. long-lost provisions, if you wonder what is happening in europe is going to happen in terms of what the banks are doing in europe, this is a real it, long-lost provisions. the estimate was 200 45 million euros. , the operatingg profit rises. on the net income basis they missed. >> provisions well below last year.

>> an interesting trend about fixed income. >> the fixed income commodities and currencies. >> it surprised us with the strength of the fixed income area. say the strong equities made up for the fixed income. what you find is that you have haveus debts, some people lost pockets of capital that impact the bottom line. do you think -- i think it might be the ecb. >> we will catch up with pimco a little bit later on. the risk coming from russia for europe him of pimco estimates the impact of the sanctions as

they sat at the moment. before we hear with the food .10% ins are, about terms of growth. i think that is low in terms of other assets we have seen. puttingds to the risk, troops on the border, we will hear from ryan later on that. this is almost great news for mario draghi. have a look at the euro-dollar over the past five days. that shows a clear picture of what is going on. the euro is coming under a little bit of pressure. it is a nine month low against the dollar. >> which marriott drive will be pleased with. -- mario draghi will be pleased with. >> will the u.s. central bank start to taper in the next few months? or will they start to raise rates?

many feel there is more of a push toward that direction. headline inflation dropped 2.4 percent. energy the court taking components and you see inflation steady at .8%. were atrocious yesterday for germany. youth unemployment of 40%. >> they're going to take their time. we've had a number of central bank governors saying now is not the time to press the qe button. >> we won't know anything until next week's inflation report. we won't know until the minute whether it is dissent on the bank of england.

benchmarking how hawkish the members are and what money has shifted from three to five. it's going to be all about the ecb. stay tuned, we will have that rate decision from the bank of england at half past 1:00. draghi sits mario down to give his news conference. jon ferro will take you into that news conference and summit up at the end. putin has responded to sanctions from both the u.s. and the eu by issuing restrictions on food imports.

ryan chilcote is here. we don't have the list yet, do we? >> you see the headline and think it is massive. you think about the seeming ubiquity of imports in russia. it would appear when you are in supermarkets, 43 billion dollars worth of imported food into russia every year. but you have to look at the fine print. have inwhich we already some of which we are going to get later today. as you were saying, will we get the list. but we do know now is that ukraine is going to be heavily hit. we sort of knew that going into this, particularly their dairy imports. i was talking to the prime minister before he resigned and he was saying this is what is coming next. he said it will cost their economy about $5 billion. that money will have to come from the imf, surprise,

surprise. all vegetables and fruit imports will be banned from europe. that is bad news for the netherlands, germany, and especially poland. about 5% of polish exports go to russia, and it is mostly fruit, apples and some vegetables. but that van was already kind of leaked a couple of days ago. they have a slogan now, and in away.ay keeps put there is a whole internet campaign on twitter i could tell you about. the u.s. imports about $1.5 billion worth of chicken to russia. they weres, called bush legs, bush drumsticks. the thing is that the russians then were not using all these

additives, all the hormones in the chicken. the russian chicken was scrawny. the american chicken was voluptuous. fatty. it was very popular and the american sent or he percent of their chickens to russia. they are banning american chicken like every other week. food as a political our trade weapon is not a new card in the russian deck. >> just the fact that there is no halt online. >> to or important points, what are they not going to touch? the first thought i had, and this is not because i enjoy my as long as they get

, the wind iss secure. the russians have already announced why it won't be on the list. if you think about it, there's a seeminglyt of ubiquitous imports in the supermarket. the reality is, since the 1990's, they have all moved reduction to russia. if you get a heineken in a bar in russia, it was brewed down the road. >> nearly $36 billion worth of those imports are from former soviet dates. >> we will talk about nestlé later. that's a good example of a company that has moved almost all of its food production for

russia in the country. >> it makes sense from a currency standpoint. jobs and thatg makes you a more desirable company to have around. we will look at that. it's not good, but it's not as bad as it seems. >> the bank of england it's set to deliver its rate decision. ♪

>> welcome back. we have breaking news from you. one of the biggest food producers in the world announcing a share buyback. 4.7% increase in organic rose. every investor will be looking at the 8 billion swiss francs nestlé is going to be buying back. double what they originally thought. they wanted 4 billion swiss francs. they also had an 8% stake in l'oreal.

the going to be very pleased by these numbers, sales 43 billion swiss francs. organic growth of 4.7%. stronger than the first quarter and stronger than had been expected. digging into the actual , they say russia drove growth in eastern europe and achieved double-digit growth in emerging markets. they have invested $1.5 billion over the years in russia. he said i wanted to become one of the biggest markets in europe. they are focused on sticking with russia and say it continues to deliver good growth. >> we will come back to this. his missions is to rebalance that company. $28 billion, will talk a little

more about that later. according to two surveys, every single economist we spoke to said there will be no change with the central banks when they announced their rate decision later today. senioroined by our orchids consultant. great to have you. it's a tough call whether we go to the ecb first -- >> let's kick it off with the bank of england. there's a smell of discussed in the air. thee won't find out until minutes come out on the 20th. until then we have an interesting inflation report coming out next wednesday.

>> is it time to realize how much slack there is in the economy? the bank has stood by its figure . is it time to change that number or not? >> i think it is slightly somewhat less. the company has changed somewhat structurally to make that less. >> referring to wages in the u.k. being the lowest since 2001. you are saying you see a little bit less slack. where is that argument? wages are one of the key components. it is rather interesting.

it loaded a lot of work on to the quarterly inflation report and i think it will air on the side of a hawkish reading. >> where are we in terms of inflation? on a trajectory more towards the 2% figure? >> i think we are heading towards 2%. , we will haveely an inflation shocker but we have to know the country is wrong to inflation surprises. we have had to survive with above target inflation. what you need to watch from that report is their estimate to wear inflation will be in two years time at current rates. ♪

>> welcome back to "countdown." beecroft.rn to nick just ruling into deutsche telekom this morning, they are saying russia and ukraine could have a huge negative impact on the global economic stability. his mario draghi going to hear this concern? >> i think so.

dovish tones are all we can expect. that's not expecting more cuts in rates for proper qe, so to speak here there may be an emphasis on the fact that there is a willingness to engage in the health of the abs market. apart from comforting words today. >> i think it helps if germany slows down. terrible numbers, unfortunately. huge rubicon to cross, and maybe for the german people. it will need some careful persuasion and introduction, but i think by the end of the first , the qe willyear look similar to american qe.

>> we are in the beginning of some pretty substantial shifts in the market. global selloff, the worse since january. frightening and exciting at the same time. the markets are in a conundrum. do they worry about rates going take comfort from the fact that rates are only going up because the economy is doing well in the u.s., let's say. so that is a real conundrum. we're seeing the effect on the high-yield markets already. i think we will see peripheral europe suffer a little bit. the search for the yield is not so desperate now. if you know that rates for u.s. treasuries will rise, you don't have to expose yourself that risk in high-yield credit. suffer those markets can . i think it will be a wash as the year runs out.

>> we will have to leave it there. they with us. we'll talk adidas and coming up, the world cup may not be enough. we will bring you the earnings of that company. ♪

>> welcome back. time for a quick foreign exchange check. the aussie dollar is probably one of the biggest movers to date. one of the best-performing inergy bank currency so far this year. australia showing a higher unemployment rate than the u.s.. what you have is the potential for another rate cut coming from the reserve bank of australia.

standard chartered saying if it rallies, that's the time to sell. hereyou have is a movement in the rant. receiving a little bit of move lower in the dollar at this point he read you have a big call from hsbc that recommends getting into emerging market currencies just over six months ago. decline in these currencies could lead to an exodus, but that depends on volatility. these are your bloomberg top headlines today.

russia retaliates for sanctions imposed over the term all in ukraine. dashed over the turmoil in ukraine. we have policy decisions from both the ecb and the bank of england later. the ecb is expecting to keep interest rates on hold near zero, but the bank president mario draghi is waiting on sanctions. -- economistrs predict the benchmark will say at a record low .5%. truce in gaza is nearing its final day. u.s. is involved in talks in cairo to try to broker a lasting peace in the region. isma said another priority to help gaza rebuild and repair the damage done after nearly four weeks of airstrikes and

shelling. the israeli army is currently withdrawn from gaza and says it is ready to act if hamas violates the cease-fire agreement. breaking numbers from adidas right here. >> they did pronounce on thursday of last week. this is a bit more detail. we're getting earnings per share nine euros. gross margin, 49.2%. what is interesting, remember on thursday they blamed golf and russia for their very poor forecast or change of forecast. allthey are saying that sales were down 18% after the foreign currency swings. so little bit more clarity there. a lot of the stuff artie came out in the wash on thursday. they were ok when it came to sales and profit. it was really the outlook that killed them. the ruble against

the euro. they will reduce the number of stores in russia. >> the duplicate all but -- they do play golf, but it's not quite as popular as it is in the west. >> they had a good world cup, germany fostering argentina in the final. but it has gone downhill since then, hasn't it? >> you got to think about how he is going to find growth again and restore confidence. >> when you think of what the

they saidre saying, is already priced in. they've gone from 85 years down to 64 years. low visibility in terms of the earnings. the golf market is a nongrowth , but they say a lot of the movies artie priced in. is already the move priced in. that's the general picture we've got right now. they are under pressure in russia. >> don't forget russia hosts the

world cup in four years, in theory. no one just yet is saying that is going to change. some calls for russia to not be allowed to host the world cup. you would think the russian market could really come back, they are coming up to the world cup. maybe not now, but certainly in two years time. >> i do play a little bit of golf. not as much as i would like, but i am a fan. >> sales beat estimates for nestlé. they announced a share buyback to the tune of 8 million swiss francs. they are saying russia, no

problem. it has good growth, especially in ice cream. barely is the second biggest market for ice cream in the world and nestlé opened its first moving pictures boutique. you can have unusual culinary walnutns such as maple ice cream. >> russians are mad about ice cream, no doubt about it. >> again we get back to the fatty stuff. sayother thing you have to is that russia is 2% of nestlé's sales. 92 percent of that is produced in russia. >> your talking about 1/5 of 1%. last quarter they said sales were going well and russia. there was a huge market for them in the 1990's.

>> he is reliving his youth. chicken drumsticks in russia. >> something be happened between then and now and now i don't buy a whole lot of it. >> but of course nestlé is moving away from the less healthy stuff. consumers. trend for >> you have to remember nestlé is the biggest producer of bottled water in the entire world. in the lastwth quarter in ukraine, despite the turmoil and the difficult start to the year. so fascinating numbers coming out from nestlé. >> i was in ukraine two weeks

ago. what i was hearing there is that actually consumer sentiment and confidence among consumers is quite high, because a lot of that damage economically that has been done has not been passed on to consumers. it will come in the following stores go to restock. everything is going to go up and we will see an inflationary boom. favorite.alk about my are expected to have generated more than $100 million in ticket sales. companyang looks at the that is called the king of america and his queen.

x beyoncé and jay-z may be the most powerful couple in music thomas from the first collaboration on bonnie and clyde in 2002, their secret wedding in 2008, to the release item incé's self-titled december, they kept people guessing on their every move, including the state of their marriage. but gossip aside, a combined 36 170 billboard top 100 songs and sold-out local tours, and no wonder they become the king and queen of hip-hop. that success has commanded high-priced endorsements. with pepsi,deals l'oreal, and american express. jay-z has struck deals with the brooklyn nets in berkeley center, not to mention starting his own sports agency. they also ruled social media having a combined 84 million facebook fans, over 60 million twitter fans and over 60 million

followers on instagram. jay-z may have 99 problems, but selling tickets isn't one. hase north american tour earned over $100 billion this summer, averaging roughly 5.3 million dollars a night. by some estimates, it's the second most successful tour of 360.r u2's seconds wethe 10 allocate to let caroline hyde drool over her hero, jay-z. >> i saw him in july of last .ear they are amazing.

>> how much would you be prepared to pay for a ticket? >> coming up, is it deal or no deal for georgia telecom? -- for deutsche telekom. we will discuss that, next.

>> welcome back to "countdown." is nearing a $17 on the salelement of mortgage backed securities ahead of the financial crisis, according to a person familiar with the matter. fox reported fourth-quarter profit that beat analyst estimates, citing gains from

filming cable-tv. it dropped its $75 billion bid for time warner. the low-cost unit of russia's aeroflot stands to buy $1.5 billion on a jet from knowing. delivery of the 16 jets will be in 2017 and 2018. boeing declined to say whether the deal would be booked as a firm order. deutsche telecom with a small increase in profits. company in the news yesterday and we were all over it.

we are joined by christopher nicholson. mobilenvesting in its and fixed line. how is it coping relative to its peers in europe? >> thanks for asking us to come along. we will deal with the numbers very quickly to begin with. it's always a big ask justice lightly beat the numbers. second, they confirm the outlet. .hey have customer growth and we get into it a little bit. issue behind everything they're doing is the t-mobile u.s. issue. the have been trying to sell their assets for decades and

certainly over the last five years. buyers pop up and for one reason or another they are forced to back out of the ring. largely it is a regulatory issue when it comes down to it. either somebody said we haven't got enough competition, we are concerned about the impact on gdp for the country in question. maybeher issue is that there's a further antitrust issue. we don't want to have at&t hole that big a proportion of the market. you can understand the argument. >> what happened to the evaluation of t-mobile? we saw the stock prices move. does t-mobile become less valuable every time these deals happen? that sprintat offered shares.

it is a meaningless offer, essentially. but 23% on reduction, but it's a deal. that is the price. it's not that iliad is actually offering a discount. it's offering a way that the deal could be done. >> we are understanding that iliad could be on the sidelines, trying to gather more money. they could be going for bigger financing are getting other people to come on board with them. >> deutsche telekom is going to say no thanks. a fiduciary duty to get the best possible deal for shareholders, etc. is why areting thing

they going for t-mobile u.s.? it's not clear why iliad would do it until you look at europe and lance being thwarted for the same issues, regulatory issues, etc. i know i'm taking it forward a little bit. >> t-mobile has shaken up the u.s. market to a large extent, hasn't it? >> the difference is that it was position.o that the brand proposition and delivery were not matching up at one point. there is a huge capex investment but also because he continues to contract.

you have regulatory pressures in europe which are making mobile company's decline to do the investment. regulators in the background saying you've got to invest. what is iliad's plan? they can raise a small fortune. say, are they to really geared up to do that premium position? probably not. it seems like they need a lot of money. >> could american mobile come in or not? we have to offer fixed and mobile, but yes.

but again, it's going to be about price. >> it has been great speaking to you about the ups and downs in the telecom area. >> coming up, a bit of monkey business is under way when it comes to selfies.

>> welcome back to "countdown." i'm caroline hyde. >> pga today, the fourth major. mcelroy went four of them? a in the off at valhall u.s. today. digs usually come at the end of the show. >> have a look at this. was in ourf london building yesterday. this is the bloomberg building in the background. he's in our building, he made his big announcement about his ambitions to return to politics in the houses of westminster. it yesterdayg

afternoon all over the channels. getting intot number 10. crazy is the favorite, isn't he? >> his popularity is huge. >> i love that story. about whether a photographer who had his camera pinched by this female monkey, she took the selfie in the middle. he is saying i on these, it was my camera, $30,000 he feels he has lost in terms of royalties. give me some of the royalties, they should not be noncopyrighted. the work of a as nonhuman animal, it has no human

royalty. >> we are moments away from randolph latest earnings. speak exclusively to the ceo. ♪

>> decision day for the central bank. well the russian crisis disrupt mario draghi's outlook. the bank of england on the verge of is what? the russian president bans agricultural imports imposing sanctions. russia continues to liver good growth. planned and 8 billion swiss franc buyback. ♪ this is "countdown."

getting some breaking news from rand gold in a second. >> we had some weak factory orders. >> that had to do with industrial production. rises .3 of 1%. a gain of 1.2%. the ministry yesterday saying part of it was seasonal but this in essence is a carry through from yesterday. this makes mario draghi's job a an harder or according to insider, the pushing the issue with draghi and the ecb quantity -- question two quantitative easing. but full of the euro dollar

chart. we saw a little bit of a move. not a huge response on the euro-dollar. we will keep an eye on it. let's see what the analysts have to say about that. crossing the bloomberg terminal. it is the fourth biggest gold miner in the world. some of the mines close to the region in west africa where the ebola virus is prevalent. and theines in mali ivory coast in congo. earnings crossing the terminal. we have an improvement on last year in the second quarter. $53 million last year. worth 46 -- $46.3 million. and 176,000 a year earlier. the goal is to cross one million ounces for the first time ever. the goal is 1.13 1.12.

how is protection doing, how will you be impacted if the ebola crisis spreads into the countries? does $1300, is that the new norm for the price of gold? >> it has been around that level for a year. >> one more. he wants one in the ivory coast and he says he will be a happy man. sales of 40%. also interesting to get his take on is there a flight to safety, is the ukrainian russia crisis meeting more people are speaking out, gold is an area to go to and a haven. we have chinese indian celebrations coming up. has been ceo since 1995 so yes been on the job for long time. >> we have not seen that classic light into gold really. even everything that has happened.

we have the bank of england and on ecb both in the spotlight thursday. both central banks will announce their latest rate decision and that in itself is not necessarily the tickets will be focused on this new german data. creating another picture is far out -- as far as the central bank is concerned. that is where we get meat. --june data for the germany's factory orders. the lowest since 2011. there is a number of factors at play. will he go for much more dovish tone. it will be about russia and about the impact of russia.

in terms of gdp impact. i am reading other reports that of 1%.at .4 we will catch up with an analyst from pimco. they're saying a 50-50 scenario in terms of quantitative easing. the one big focus, a lot of people spend time going person .- consumer prices core inflation is the inch market that market focus on. we take out the energy component and it is low but it hit an of-time low of point seven 1%. >> the forecast inflation at 7%. we below the target. if they get a deflationary shock which could happen -- that could be russia.

russia could be -- could turn into that kind of shock. yesterdayed this out in regards to what is happening with put in and the number of troops. and the bloomberg story is , vladimirs morning putin at a tipping point in regard to ukraine. unicredit meter which basically rates central their central banks and hawkishness. mark carney has gone from three to five, a flip-flop. and broadband reinforces, he is up there at six.

followed swiftly by mccafferty. >> that is the two that was mentioned earlier. >> we will lose you. >> we have the central-bank and halffrom the ecb past one we will bring you the conference from mario draghi as well with the race commentary. vladimir putin has responded to sanctions from the u.s. and eu -- u.s.s. by issuing and eu by issuing sanctions. >> the headline, russia will ban food imports was pretty alarming. we have some of it but we will get more today when the government could -- publishes

the list of and foodstuff. they import $43 billion worth of food. that is a lot of food. when you go into the supermarket which i have been doing for 25 years in russia, you see foreign products seemingly everywhere. this is going to be massive. little bit of a big deal. let me talk about that. ukrainian dairy products, history. the prime minister was talking about this a week and a half. saying the trade wars on the way. you cannot be at war with a country, he considers them to be at war with russia and still do trade. this will give it to given. poland my free move into the european union, pruden said they will ban vegetable and fruit imports from the european union. that affects some european

countries more than others and poland more than the rest. of fruit to a lot russia and a lot of apples. they preannounced the ban of polish for it a couple of days ago. fruit a couple of days ago. they have this nationalistic campaign and the ukrainians are supposed to start buying more apples. you can see how quickly these foodstuffs become weapons in this gastronomic war. then you have the netherlands. that is an interesting one. , a big importer of food. germany and exporter and then they u.s. and the u.s. in particular cells a lot of chicken to russia. a lot less than it used to. it was left dependent for its chicken exports. has relationships all over

latin america. hype?that media >> there is truth to that. and we were saying earlier you're always comparing thanks to the 90's but russia is in a very different place today than it was in the 1990's. in the 1990's when you saw this big would this presence of they were imported into the country. they are likely to have been produced in russia would have a foreign label. >> 90% of the goods they have are produced in russia. >> so what is the big deal? from -- for nestlé we are 1/5 of 1% of their sales under threat. for other companies it will be different. it will be interesting to see dannon.

russians are mad about their dairy products. that will be interesting to look at. is building up troops on the border. everyone is saying how close are we to some sort of invasion whether you put it under the guise of a peacekeeping mission. >> you can only cry wolf so many times. we have been here before a month and half ago when we had the rising troop numbers on the border and the russians are going to launch an incursion. then they did not directly intervene with large numbers of russian forces. we have the military surrounding the city of don't ask -- donetsk

. the separatists that are backed by russia say if they do not get more help from the russians like russian troops on the ground they might get defeated and maybe in a week or two. if you are president butler put in your in a difficult space because you have announce that you are the guardian of russian speakers wherever they are. in particular in ukraine. he may be forced given that reality, that political reality. >> we will take a quick break. after that we will get the resourcesto wrangle joiningoldjoining us next. ♪ >> welcome back.

randgold sales and production. here to talk is the chief executive. thee is an increase in all key metrics. only are you going to reach

it it will beat it. >> we will get well in the middle of that. if you look at 560,000 ounces midterm that we are just short but has been commissioned it has a good back and. to delivertinue little steps. things are looking up. >> how is it on the cost size of the business, that is one of the big challenges. this is a heavy duty cost business. >> the costs are in good shape. we have come down significantly half year on half year. and corner and quarter over the year, we have come down. last quarter we are flat on last quarter because last quarter was a very good quarter. >> give us a sense of where gold -- you see gold prices stabilizing. we have got geopolitical

concerns command center in the middle east. are we seeing gold as a haven driving prices up or is 1300 where we should be? >> it is a good number. is driven by the industry continuing to supply gold at a loss. not disciplined as an industry. we are not in good shape as a gold mining industry. there --side i am sure knot as theill top industry struggles to make a profit. then you have the drivers, the big surprises that chases investors and to go. my feeling is 1300 is a good

rice for the time being. >> where are we as an industry, you spent time talking to blackrock, they have gone through this. getting to grips with their businesses and you said and one of your mantras is the gold miners -- how far behind are we with gold producers getting their act together and you performed everybody, 20 7% return annually for the past decade. what are you doing that they are not? >> we focus on bottom-line earnings, profits, profitability, return on capital. the industry got caught up in this drive to come -- produced gold at any cost. and now you have seen the big write-downs of the last 12 months in all the big companies. there is a lot of debt in the

industry. at $1300 an ounce it is hard to see that debt being dealt with and there is no equity. the gold industry would clean up its debt. >> you would like to see a lower price. >> or at least stay for a while while it washes out. >> you have been there almost 20 years. one for biga big organizations. i like to run companies that make rough it. you are number four in the market cap level in the world. did you never think i want to be --?er one, >> we make a big difference to where we invest. find onewould like to acquire one.sit or

where -- we are at that stage for we have some young executives coming through. >> when it comes to one more mind, young executives, etc., you have been in this is this a long time. what has really changed in geology or has it? is it still a craft, a craft into science, or has technology helped? >> it has changed and we brought back a lot of high tech [inaudible] in africa. we introduced some high-tech mechanized mining which you have not seen in africa for a long time. minedli we mind -- underground and we are efficient at it. unlike the south africans who are quite manual in the way they mind their minds. mines. their

and how you managed the equation to dissolve gold. there is no ground raking technology in the last while. >> you are in west africa, you make change into those areas that you invest. know sierra artie leone -- we already know sierra leone and liberia. are you worried about how it will affect you? >> everyone is in the big thing is education, awareness, discipline. we have done all the standard things like that of our contractors are allowed to bring people from infected areas or countries. there is a lot of migration in that part of the world. it is about education and teaching people to be careful and no longer shake hands and wash her hands and be aware. the basics. >> great speaking to you. thank you very much. the chief executive of rent gold

-- randgold. >> more after the break.

>> this is the company that is cutting costs. it is turning around its fortunes after what we were talking about earlier. by lowerd marked acquisitions. si expected to be around $9 billion. capexkeeping its projection unchanged at a billion dollars but it is for thists projection year. this is part of the process which we discussed with mark. of the major miners consolidating after years of 20. more famine now. we have heard that. >> it is interesting they say that china is the holy grail. 7.5% growth. china is where it is at and

they have to keep going over there and discussing where the future is, where growth is. there is a continuing decline in prices when it comes to iron ore. copper as well is where most of the prophet was. was.ofit >> investors are beginning to focus on to get on growth and expansion. rather than focusing on returns. blackrock says keep your commitment to returning money to shareholders. do you have times of a few seconds of deutsche telekom? >> sales look really good, 15 billion euros. >> not a bad set of numbers. >> it is at 0.3% increase.

they still get to dispose of that. >> we will be looking ahead to the ecb rate decision with pimco. we will be talking about russia and the risks to the eu economy. ♪

>> welcome back. time for quick foreign exchange check. we have quick movement on the aussie dollar rates. a bit slow on the jobless numbers. much higher than the market had estimated. the aussie dollar dropped and it is the biggest rock that we have seen in almost a month. traders changing their view on the potential of a rate cut from the reserve bank of austria. yesterday it was 16%. the risk races to 36%.

above the u.s. for the first time at 2007. dollarly in this aussie -dollar trade is still an opportunity for you to sell. if you ever see that level again. this is the best performing currency this year. let's look at emerging-market currencies. you have dollar rand falling. the pmi underperforming in south africa. us -- he said the tide is terming -- turning on emerging market currencies. also the ruble and the peso. this is a mini wobble potentially. the only thing that changes the difference between a decline to an exit this in currencies is volatility in that is rising.

>> here are today's top headlines. russian fans billions of dollars of food from the u.s. and the eu. resident vladimir putin has ordered restrictions on food and agricultural imports for one year from countries that have imposed or supported sanctions against them. we have policy decisions from the european central bank and the bank of england. the ecb is expected to keep rates on hold near zero. mario draghi is weighing sanctions against russia -- if it will undermine a recovery. policy could be split over the timing of any rate hike. that will stay at a record low at .5%. the 78 our interest is nearing its final day. president obama calling on both sides to extend the cease-fire

agreement. the u.s. is involved in talks with cairo to broker a lasting peace in the region. obama said another priority is to help gaza rebuild and repair the damage done after le four weeks of air strikes and shelling. the israeli army is withdrawn from gaza but says it is ready to act if, some violates the cease-fire. lows are here to stay for now. at least that is according to two surveys ahead of the ecb and the bank of england. every single economist we spoke to said there will be no change from the central banks when they announced the latest rates decision they are today. pimco managinghe director. polls when wehe are not expecting changes in rates but it is the temperature of the central banks. just looking at the data flow. germany is under pressure. wondering does this change the

pressure levels for mario draghi and the ecb? , the dataginal flows is going in the duration of making the growth outlook worse and it is putting a little more pressure on the ecb but the ecb for the rest of this year is on automatic islet. delivering the things it is recommended to. purchases toward the end of the year. we would need to see confirmation that the outlook for growth and inflation has deteriorated before they take more steps. >> good to see you. the germans to year yield has dropped below zero for the first time since may 2013. if ever there was a sign that rates would stay low for longer that is the sign. what does it mean for our bond investments within europe flippedthe portugal and

it not hit bond market. draghiat mean that mario broke the link between sovereigns and banks? into the very short-term term part of the money markets we could say that that link has been broken. we see their the total convergence of repo rates between the emu big for. -- four. stillriphery countries behave like credit and trade like credit but they're givenably insulated and the further stimulus in the pipeline for bond investors, that is an area that one can continue to invest in. there is an ecb backstop to it. paint a picture for us, what

do you think mario draghi will outline in terms of risk is of a russia and ukraine? we have concerns about germany's slowdown. what will force them into action and do you think we might get strong rhetoric mean from mario >> marioestion mark draghi -- mario draghi? >> he will present us with a glass half-full, last half empty outlook. the balance of risks to their forecasts are -- unchanged. intra-meeting data, some of it has been good. thebottoming out of deleveraging and credit. that is the good news. that is a bit of a stretch to call that good. on the margin the italian gdp data is negative. factory order data is negative

for germany. that would put a positive spin on it. at the margin there is some pretty big clouds on the horizon and it is not looking that good. we look at european bond markets what a brilliant run they had, some would say. at nearly 10% return this year. which think that overall -- trajectory is done on the periphery and will spreads begin to widen against germany? if we take the ruler and a very simple extrapolation of good trend, the spread narrowing trend that is in place that 10 bondspread to 10 year will be 100 by the end of this year and it would be flagged by the end of next year. that is never going to happen area of somewhere between the

next 18 months that trend bash script will flatten out and it might widen out depending on the circumstances. i think we are towards the -- we're getting into the letter endings of this spread narrowing phase. there is still a bit more to go. >> what is your preference, spell it out for us. what do you like in europe and what portion of the curve? >> what i like in europe is what i call it ecb linked credit. those are financials, the banking sector has the outlook for their profitability is much liquidity, the cheap liquidity that the ecb will provide. securities from the eurozone as well as nonfinancial corporations and some of the governments. from the southern european countries where there is still a spread.

in terms of maturities if you ,ook at the concept of carry that is the five-year sector where that carry is the highest and that is a reasonably safe place to be. your reasonably cushioned by potential negative events for risk assets. >> you said there will be a glass half-empty, glass half-full picture painted by mario draghi. where will he stand on inflation them a will he pain does a better picture of where he foresees inflation going, are they going to be more worried about -- we're getting a the inflationwhen is and where the market expected to be. >> inflation will be an interesting one because if they take a hard look at some of the measures of inflation expectations, inflation swaps

are hitting -- heading in the right direction. they did get the rise pointing toward expectations for higher inflation. after the june measures taken by the ecb. those inflation swaps have taken in july.edive they are heading down again. if we look at indications for market expectations for inflation two and three years out there well below the ecb target. outlooka pretty dismal and that has some major consequences for debt sustainability and growth. the ecb should give an indication that this is a problem. expectations are starting to dislodge themselves from the ecb plus target -- acb's target. the bank ofk about england. there is a great report with a hawkometer.

get, is dissent will we a price dan and isn't a good --is it a good thing? will is the data that dominate. as the picture becomes clear the various sections on the mpc and the positions they represent will be justified by the data. the data is telling us that there is some improvements taking place particularly on the labor market as well as some of the output indicators in the u.k. so i think the npc is still on track to tighten its policy towards the end of this year maybe. early next year. probably. at the latest. compare the mpc in

the fed when it comes to dissent? they seem to be the dissenters. we have had some defense -- some dissent. thedo you compare dissenters and what it means for both central banks right now? really --ect that where the dissenters really stand out to the other end of the spectrum, the ultra-dubs is the concept of financial stability. they're leaving too much juice in the punch bowl for too long and that leads to some imbalances in the economy and you have the potential for further bubbles so you take that angle together with improving data and the dissenters have a case. they probably need the stronger economic data that point toward higher inflation to push those

financial stability concerns through into a majority view. >> good to chat with you. speak to you soon. -- to us live from munich. rate decision that we have been chatting about. then the return of the ecb. then at 1:30 p.m. london time we will bring you president mario draghi's news conference. >> leslie reported sales that the analyst estimates but with russia providing good growth, with a keep up that momentum? much more about potential sanctions after the break.

>>let's get back to corporate news. nestlé ported sales that beat estimates but they announced a share buyback to the tune of a oflion swiss francs, 2% their outstanding shares. 3.7%. will continue into 2015.

that will send shares higher. >> has been a longtime coming. the last was completed 20 years ago. anything less than 4 billion would be a disappointment because they sold that 8% stake in l'oreal. they got a chunk of money. they wanted to make sure some of that was coming in their direction. there was a lack of discussion about russia. good growth especially in ice cream. a move and pick boutique where the -- you can have creation such as mushroom cream soup with maple walnut ice cream. done --are pitifully beautifully done.

numberhe organic sales which was a cracker as well. 4.7% higher is what we saw. europe outperformed. with europe rising 0.6%. america is doing well, almost 5% growth. what stands out for me and i know that it is 2% of profits for nestlé. the fact that ukraine was ryan sayingea and the impact of the foreign currency and the weakness in the currency, the ukrainians have not been hitting it. growth despite the political turmoil. consumers are not retrenching from their purchases of nestlé. you have that ban on foodstuffs coming from the eu. manufacturers -- the

goods that russia sells it makes in russia. they would not be deemed as an import. we will see -- not see sanctions cracking down. not advertising with certain media giants that are associated with oligarchs hit by sanctions. nestlé says we are analyzing. >> kellogg's lowered their 2014 forecast and in a letter -- unilever was unchanged. you have someone who is giving you a good message. it is a company in transition. >> 8.8 percent in terms of sales. click stilts tom -- still to

we have an argument. we are already starting. >> he provokes this. ♪ [inaudible]

>> welcome back. this is "countdown." jonathan is here with the big market teams of the day. it is all about the two central banks. >> it is. later be something for this year. the inflation report lays the groundwork and that will be the pivotal inflation report. , i willpress conference be watching very carefully. it is a big deal. mario draghi wanted a quiet summer. what else has he got?

that is between inflation expectations and what the ecb says. >> 8.11. when inflation was too high and they said expectations must remain firmly anchored. there is a false dawn. >> that was one of the tragic missteps and misinterpretations. >> the other thing going back to some of the notes him a 50-50 on qe. you touched upon it in terms of how it has impacted nestlé and it impacted every report we have

gone through. >> saying this could destabilize. >> is this the external shot? mario draghi said if we get an external shot we will do qe. thingsia is one of those . it will not be a bank shot. it will not be a deflationary shock. >> than their response is not so simple. >> german bond yields go negative. we will be talking about high yields. do you want to be low yield. that will have a discussion about where to position yourself. >> by was the last time we had dissent? >> 36 trait months. -- straight months.

we have run out of time. next.e move" is more on the ecb. ♪

it is a big one. we have greek inflation. get one.s to here with me is manus cranny and caroline hyde. >> it will come down to those decisions and the rhetoric. the core pressure on the central bank or we have already had shocked that will take time to be delivered and it is in the form of russia. vladimir putin and a massive

amount of troops on the ukrainian border. we will find out when you throw to that. >> french wine will be allowed and european vegetables will not. i will talk about the details and what we know about the russian man on food imports. we will look at that and a lot more. >> nestlé and deutsche telekom imprest and -- impressed with recent results and there is worry over instability that could have a huge negative impact. andlé says that the russian ukraine showed growth. i will be back for more in just a little bit. back to you.