>> possible sanction retaliation, the fbi says the investigation where the russian hackers stole information from jpmorgan and for other banks. >> responding to business leaders who weigh in to the new government. we will hear from the ceo and many more. >> i think it is important to t, workingingle cabine as a team. i think the situation has been clarified. airline sees a return to profit after posting a record loss. we will hear from the chief executive officer.

>> welcome to "countdown, i am and edward. >> good morning. the fbi is investigating a coordinated computer hacking attack that targeted jpmorgan and for other major financial institutions, according to officials familiar with the matter. it is believed that the hackers were russian and were retaliating against u.s. sanctions against moscow. they have stolen data. this comes down to proving who possibly attacked jpmorgan and it has not been decided. the trail is muddy. investigators are considering the possibility that it is cyber criminals from russia or elsewhere in eastern europe. the fbi's involved, the national securities involved.

you may recall the u.s. considered sanctions or not against russia. could it be that state-backed hackers -- do they have the sophistication? the sophistication level with which this has happened is a hallmark of a professional. >> apparently a software flaw allowed hackers to get in and remote control computers. it is apparently something that a hacker is not able to achieve but state hackers could. the russians have some sort of previous -- they have used this type of tactic in the past against estonia and georgia. they brought down government websites. jpmorgan hasrse, been the brunt of russian ire.

and from the foreign ministry as well in april. it blocks a payment from the russian embassy, and the foreign ministry called the move by jpmorgan illegal and absurd and it was rightly criticized -- widely criticized. it was already at the forefront because of its actions. >> i think it is important to say that the distance between, even if it is proven that you have some form of high-level hacking that is gone on, the distance between that and retaliation by the united states of america -- or response in hacking cases -- is governed by the threshold of a military response by massive economic harm or the potential loss of life. thus far, neither of those pieces seem to be the key. >> jpmorgan has so far said they have no comment as to whether

they have been the victim. >> they have said they have filtered cyberattacks on a constant basis. >> $200 million a year to protect. that cost could go up. it could affect their net income in 2013. 1% of their net earnings is going on cyber security and it will grow. >> that is a big sector if you add up all of the banks. french politicians and ceos gathered near their sigh -- near versailles, following a week of political turmoil following the resignation of president ho llandes's government. caroline? >> good morning. i wish i could say that business executives are reporting well.

they say that the new economy signals the prime minister and the president want to continue what they called their full business policies. there was introduced earlier this year a responsibility pass that includes 41 billion euros in tax breaks, exclusively to of the, the head of one biggest utilities in europe, specialized in water and waste management. he says 40 billion euros might not be enough, that this reshuffle is a good thing. towhat i think is important, have one single cap net working working as- cabinet a team. i think the situation has been clarified. for the rapidity

of action which i think are necessary. now of course we have to see what is going to happen when the prime minister and the president plan the parliament. as a result of this reshuffle, he doesn't expect any major political turmoil in france in the coming months. he says that the political crisis in france is not over. >> business leaders like pro-business policies. they also likes urgency. -- certaincy. what is the message they wanted to give to the prime minister? how was he received by the business community? minister --prime that was a big event yesterday. he announced the reshuffle and

he was received here -- he received a standing ovation. up business leaders stood and applauded him. pretty wellually received, giving confidence to business in france to invest in oyment is stilll very high in france. he wanted to accelerate the reform. when i asked france's largest insurer about this -- what he thought about this message and the debates that was -- his response was interesting. >> it is the first time the partywe see the socialist coming to meet business guys.

telling, "i love you." corporations, the private sector, i am supporting you and the success of france." we have been waiting for a long time -- the type of radical change that started with tony blair, the old labor. the support of, corporations in the u.k. >> they are comparing the prime minister to tony blair. so that was pretty interesting -- a pretty interesting message. we will be talking to many more executives here. know, he represents about 760,000 companies in france. back to you. >> thank you very much.

s carolina saying, the president will be joining us on that conference. and later on we will be speaking to the director of the world bank. stay with us throughout the day for more on that. australia's biggest airline says it will return to profit after investors overlooked a record loss. paul allen joins us with the details. we have lost and we have a forecast that it will return to profit. >> yes, it really is a tale of two stories. the headline number was absolutely awful, $2.84 billion loss. most of it was made up with the international fleet. the historic cost of aircrafts

the purchased back when australian dollar was more in the mid-60's rather than where it is now, in the 90's. they say reflects the fleet value. if you are looking for silver lining to that earthlings cloud, the underlying loss was 646 million. it was expected to be much more than that. it is to say, there will be no dividend. he said that it represents that we are through the worst. he is taking a careful approach, through it true billion dollar $2ansformation program -- two billion transformation program. crucially, the sale act has recently been amended, which is going to allow them to go looking for a foreign equity partner and more foreign money.

that is really the story of the markets and we are seeing shares go up by 7%. >> can the chief executive hang on to his job? >> well, that is the critical question. he has been there for five years and we have heard it all before. this is not the first time qantas has said it is about to turn the corner. he has been there five years and has not leaving himself immune to the changes. was $5.1neration million, more than the combined ompanies, thatr c little piece of information comes from the independent senator who unleashed an incredible spray against qantas this morning, calling it a fiasco. out that it has since been staggering from lost loss.

however, there talking up the transformation strategy, promising the company will return to profit in the first half of 2015, and i would say it is probably time to deliver. >> thanks a lot. qe or not to qe, that is the question for the ecb. find out what morgan stanley thinks. the answer should be when we talk to them after the break. ♪

>> time for today's company news. a program to buy asset-backed securities. june that he was intensifying preparations to buy them. the chinese e-commerce company alibaba reported a surge in first-quarter profits, boosting spending on its mobile lab forms. it almost tripled in the last quarter to just under $2 billion. these figures are likely the

last before the company goes public in what could be the largest ever american ipo. private equity firm terra firma is considering a sale of garden centers. firma bop business two years ago, and could be valued as much as 700 million pounds. yieldsgovernment bond continue to hit record lows in spain in germany, italy, hol land, and finland. how low can they go? hi, anthony. thanks for joining us. this was obviously caused by those comments from mario draghi last friday. how much lower can the hope of further action by the ecb yield go? >> the front-end seems to be

pricing in around 40% chance of extra accommodation. anything by draghi at the next qe iseting -- as far as concerned, the market is still a bit ahead of itself. your area would have to enter into some sort of recession rather than just the low growth where we are at the moment. you have to get inflation, instead of below inflation we are seeing. deliveredhe ecb has in the past when market expectations were off. that's a people are hoping for.. why it us understand makes sense to pay the german government for the privilege of lending their money for up to three years. enlighten us. there is a structural trading reason why this is happening -- or is it because people are forced to buy this stuff, is

there a reason this is a good idea? >> what's the alternative? you have to give the money to the ecb. two basis points seems the least of all evils. certainly we have seen extensions out into the periphery. there is an avoidance of buying at negative rates, and you have seen it's done very well. if the alternative is literally giving it back -- >> you have to make decisions. >> the least of both evils. >> the headline yesterday was that blackrock helped ecb along the way. that is very different. if you look at some of the a $2es -- acidback is trillion market back in that slumped.

they are very different to qe. do you think the market has over appreciated that qe is on the table, when what we are being told very clearly is a cidback? >> if the announcement in september is literally, we are just going to accelerate the asset-backed security, i think the market will be disappointed. the market is certainly looking peoplle know that that is coming, that the appointment of blackrock is clearly a step forward. but if that is the announcement that drug is going to give, the market is ready to go further than that. >> is there a middle ground, that could appease the market, cutting interest rates further by five or 10 basis points? that?it do >> that is a very precise

measure. i think, since june, they have basically come back to rates remaining at this level. they could easily say, at this level or lower, easing at some stage in the future. it is going to be a difficult balancing act. maybe he fleshes out a large-scale purchase program would look like, not saying that they are in any way closer to just giving a bit more detail, making it a bit more realistic. >> more from anthony in the second. this is "countdown." ♪

>> welcome down to "countdown, "." let's start with the eurozone for just a moment. what we know about the draghi -- fixated on the inflation number we will get this week? politics and his relationship with the london bank? i think it has remained around 2% for a long. of time. -- a long period of time. >> that is his trigger. >> they put a lot of faith in

that being long-term and saying -- hicp, is it broken? hicp is anchored. if it goes below 2%, the ecb's target is close to below 2%. it's not necessarily broken but it is heading in the wrong way. it had been a pretty stable movement for the whole year. what's the next move? >> you said you would much prefer to sell rather than european bonds. is it that simple? >> i think it is. give at someot to stage and i think maybe we have to wait until we see the whites of the eyes of a rate rise in the u before we get the message the euro was going higher. markets need to be convinced that any rise will be limited and gradual. we have kind of all bought into that. take the first

move and then people questioning the speed of right hiking cycles. particularlying, move of whenhe the hike is going to come, is there a belief on the trading floors that it will be gradual? what is the deep-rooted suspicion about the bank of england? >> it's a very good point. people have criticized mark for confusing signals that he is given, however the market seems to have -- gradual and limited. i find it strange how much faith we have been putting into that. perhaps it is just a sign of interpreting where yields are. actually, we are -- rates might go up further in the future.

i think it might just be an interpretation of where euros are. weree latest mpc minutes cautioning people -- you were right, because we got to hawkish calls. how quickly did those two hawks turned a five hawks? >> that is the big question. thewhen does it lead to rest of the member saying, ok, let's just get it out of the way. is there a majority on the committee saying, we are just not ready for it yet? there are new members who we know very little about. there are a number of known unknowns. it will be the interesting development in november. >> thank you very much for joining us. anthony o'brien. up, french telecom --

the numbers. ♪

>> welcome down to "countdown." theto see what is driving foreign exchange market. the back story is that the u.s. gdp dosh the dollar is a little bit soft -- the dollars a little bit soft. it is the biggest tech line on the board this morning. that is setting us up to look at a couple of other things. with the euro, you are seeing the swiss bank at the strongest level in 21 months. will they intervene for the first time in two years?

and it was120 -- said two years ago that there would be no exclusion. what you've got is people buying swiss bank, selling euro -- the qe discussion is explosive for the swiss bank. that takes you into a real center of what is going on with the dollar. the dollar is heading a three-week high up against all 16 major currencies that we measure at bloomberg. there is a rebalancing in the australian economy. the dollar is weaker, the aussie dollar higher. topser the bloomberg headlines. the fbi is investigating a hack attack on jpmorgan and for other financial institutions, according to officials at familiar with the matter.

is believed russian hackers were behind the security breach and the loss of gigabytes of data. officials believe that it could be in retaliation to u.s. sanctions on moscow. so far the stolen data doesn't appear to have been used to commit fraud. the u.s. says russia maybe directing a counteroffensive. that is fighting in the battle torn countries in those regions. the prime minister benjamin netanyahu and his truce with hamas -- a political and military victory. yea -- prime ministery is being criticized. the tractors saved thousands assured israel's security. >> breaking news.

.n offer for the gbt unit is the battle over this brazilian asset that has been the key. >> i know. i try to tell. sell it off. telefonica tried to move it. is this enough? . billion euros, we understand that later today, they're going to come back with a renewed bid with 8 million euros. have got to -- you get down to the nitty-gritty, because this isn't all in cash. offering stakes in yourself, stakes and emerging companies.

what they been offering so far as a 20% stake in itself, selling its own shares to the french conglomerate. then also a stake in the combined brazilian unit. ca is offering about $5 theion worth in cash for brazilian combined unit. it really comes to this point of whether they want italia itself. >> there is one thing you brought through time and time again -- why would they want to deal? and the key word is disseminating content. limiting access to a myriad of platforms and italy. >> according to people that, it is that exactly. it sold sfr earlier this year. why do they want to have skin in

the game when it comes to telecom? >> you can expand your content into new and interesting areas. muchonica want it so because the home of markets are shrinking. they are not demanding revenues in terms of their mobile quite so much. we can call on skype, we are not using our mobile way we used to. in brazil, you've got gdp and 12% of the market on the internet, 9% of the market in terms of landline. less competition so they can look to expand, tapping into an emerging market. they have gone from 7 billion euros, and all caps very murky -- how much of telecom italia will it end up having? it's a big shareholder in

telecom italia. that.on't like do they sell their stake? >> what about the regulatory issues within brazil? they may not let the deal go through. >> that's what the problem is, do you want more consolidation? both of these options are for merging with the rival, but they want more competition, not less. that will be a really interesting take. how can they promise brazil more competition? would take aalia stake in tim. cash. >> telefonica is a bit heavier in terms of cash. >> we have got numbers coming

out. frenchygues is a conglomerate. the third biggest player in french when it comes to mobile. -- france when it comes to mobile. they have had a tough full-time of it. -- tough old time of it. they are desperate to either merge or exit the business. as it stands, it is too competitive in france, there is a price war. iliac is shaking things up and bouygues has not managed to perform. catch generation has been down. they are cutting the four-year sales forecast. the conditions are even tougher. it will fall to 1%-2%. they are opposite to brazil.

they will have fewer players. they want to go back to three. them tohe doesn't want be a leader in the consolidation process, they will think the other three leading telecom providers should leave when it comes to consolidation. >> they have the most regulatory issues. it's about 20% owned by the government. this is a key concern. . we want to see whether iliad comes back. >> iliad had a discussion with bouygues and it was rumored today -- it comes down to valuations. billion, iliad was offering five to 6 billion. there was no deal to be done. >> there playing a very funny game. they came in well below what

people were familiar with. thinking that already sprint had offered. >> they thought they could sneak one in. oursame way as -- they lowballing. it is a ballsy strategy. desperate.is in that many are left scratching their heads, thinking -- maybe if they are going to buy assets they won't have the money to start doing it in france. as it stands, we know earnings are going to be under pressure. they said, at the moment you have still got plenty of competition. many people are worried that this competition we are seeing in mobile phones will spread to landlines, tv. >> it's a wonder how much mobile phone prices can come down. i 40%, youown

can't go any lower. 40%, you can't go any lower. you have to gget consolidation. >> exactly. will probably follow that forecast. interesting to see what telefonica will do. >> thanks for that. we speak to the british chambers of commerce. it releases its latest forecast, coming up after the break. a fairly upbeat report. ♪

time for today's company news. italy's four biggest banks are seeking to borrow as much as 27 billion euros in the european central bank auction. that is according to people familiar with the matter. is asking for about 7 billion euros in september auction. a record 2.7 billion dollar

annual loss for australia's biggest carrier, which sent its shares rallying. we spoke exclusively to the company's ceo. >> i am fully committed to this business and turning the business around, delivering on the factors that we can control. we have a $2 billion transformation program. the worst is behind us. developing -- delivering record levels of customer satisfaction. there is no better time to travel on quantas. we are fully committed, no one is thinking of resigning. >> there will start -- they will trials on anl ebola vaccine as soon as next week. the death toll of the disease continues to rise. there are currently more than 1400 people in four countries. britisher today, the chambers of commerce released its quarterly economic forecast,

3.1% this year. growth will slow to 2.8% next year. it upgraded its forecast. has lowered its unemployment estimates for the next year as well and it expects the bank of england to raise rates in the first quarter of 2015. we had toe -- correct ourselves. why have you raised your forecast for this year and next year, and why is the unchanged a -- a war 2016 oh rning sign? in thee is no momentum economy now. our expectation for the next two quarters are higher -- not much higher, but a little higher. employment is growing faster than we thought.

the pack figures for the second quarter have been revised -- back figures for the second quarter have been revised. there is a history of upward revisions. that is the reason why we have raised it. we raise the forecast. it isis a gradual d-- bound to happen, because 3.2 for the uk's a stellar performance. that his achievement. usre are factors that push further toward a slowdown, one of them is interest rates. as interest rates go up, mortgage payments will increase. consumers will have less money to spend. unhappyou are already

with the types of recovery that we are seeing in its reliance on consumer spending. >> we are unhappy. i'm not saying there was something wrong with that. the early stage of any recovery must be the consumer. 70% of the economy is consumer spending. growth.es need to see the early stages must be consumption. at this point, we need more investment and significant -- we have a balance of payment and deficit and that is something that you can maintain, but it does cause you problems. theou say you want to avoid flash in the pan. s as beingo avoid thi a flash in the pan. that is where your warning point comes in. you say there is not enough being done, really, --

they are hiring people, setting up the equivalent of a business bank. what am i not getting right? >> not everything. i think the structure for export ideal, innately not the sense that we are in europe. our biggest trading partner is the european union, the eurozone. the eurozone is one of the -- it is a big economy, a good market, in germany, the strongest need our own exporters to make good efforts to diversify. >> isn't that what cameron -- is they're not enough of a push in that direction? >> obviously not. we are making progress. but it is not enough. more has to be done. our exporters are not getting sufficient support, when you

compare with other economies like germany and france. story.s are a success i think the future of the u.k. must depend on services. manufacturing is very important. we have never been a manufacturing economy. i talk about balancing, i dummy manufacturing and services, i mean more exports and investments and consumption. efforts must be put their. -- put there. smes insome marvelous this country. these are important issues. >> can you give me a sense of when wages will pick up? unemployment will follow all the way through the second quarter of 2017. we are still not back to

prerecession levels. wages fell in the last quarter. when our wages going to pick up? this is the indicator. >> wages are very important. wages can and will go up. the worst thing that can happen in this country now is for wages to stop going up. if this happens, companies will go bust, and you will get higher unemployment. what we need -- to me that is the wrong analysis. not fast enough. it is really important that there is a sequence there. the big risk is if you start pushing up wages, that is the worst thing. investment.s more >> investment by business -- >> and machinery, in training.

>> you think that the bank of england is not getting clear enough signals? we have people changing guidance. what our business saying to you? do they trust the bank of england? >> i think now the messages have become muddled. sometimes they speak too much. i think that sometimes you have to give a clear message. nuance, everyry sentence. analysis. excellent thatesses understood it, carney is saying, i will not raise rates. they don't expect a promise. they know things may have to change. ys, i didn't actually mean that. there has to be greater clarity..

>> thank you so much for your very robust thoughts. >> coming up, moving on to the champions. how many goals alexis chan says -- sanchez scored. ♪

>> welcome back. carolyn is here, more news. brazil continues.

we have now got telefonica coming up. the owner has a meeting later today. this is why we are suddenly getting a flurry of cash on the table ahead of that board meeting. telefonica says we will raise you 7.4 5 billion euros. thisis in cash, clearly, is going to be a myriad of things. there will be lots of discussion around this table. as it turns of value, telefonica wins. italiallion euros, and is offering 7 billion. they are trying to one up each other. telefonica has a 20% stake in itself. they are offered emerged stake in the brazilian unit.

meanwhile, telefonica wants to merge with its own telefonica brasil. raisa, it is offered cash to merge, now it is upping that offer in terms of what the overall valuation -- >> why? >> why this excitement? because they want to get into the market share, this emerging market, this far more useful market, it's very keen to get onto the internet. at the moment, they have 12% of the broadband market. shrinking has revenues, there is more competition in spain and italy. air using their mobile's less -- mobiles less. they want to up their revenues and their scale. the question is will regulators let any of this happen. it will come down to the nitty-gritty -- how much stake

in telefonica they want to keep. >> well done, thanks caroline. we will have more breaking news for you. ♪ . .

>> a bidding war. they release the details. >> hospital sanction retaliation. they are investigating whether russian hackers stole data. leadersrench business weigh in. >> i think it is important to and a single cabinet working as a team. i think the situation has been clarified.

>> welcome to the second hour. >> let's bring you up to speed. jpmorgan is in the frame this morning. >> indeed. this is the story. they and four other banks were it could be russians or other eastern europeans. this happened before or after. they help the long. along.ed >> it was back in april.

there was criticism when they blocked the payment and the u.s. action bank and foreign ministry called the move illegal and absurd. the bank was widely criticized. this is another example of the attacks on the financial sector. it is jumping because of sanctions. >> this is the vulnerability. >> i could go on. >> i have been learning about this this morning. as are you. allowed hackers to get in and remote control your computer. this is the way that the hackers are expected to have access to the information. comments.no >> they are not going to talk

about the trojan horse. >> we will come back to that a little later. this is separate. this is not an fbi probe. this is a separate probe. were. >> they have spent a lot of money on these attacks. >> that is what they have spent in 2013. almost $18 billion. 200 million is almost 1% of the net income last year and is a lot of money. >> that was the conversation with lloyd's of london stop they said that one of the biggest risks is cyber security and that is not a thing you can ensure yourself against. response, if it is a russian state bank hacked, it will be interesting. the response threshold for nobodyy response that

neither of those are on the agenda at the moment. the u.k.we talk about recruitment company speaking to the cfo and a matter of minutes question mark he is prevalencnt. and this, ast well. increased fromt the previous year. the key metric is next secret -- next season. a will be looking for geographical breakdown. it is pretty much in line with profits. they have come in-line to the guidance.

>> they are talking about the moment and the impact on business. frenchs talk about the business scene. politicians and ceos have gathered for the business lobby and this follows a weaker political turmoil that saw a cabinet reshuffle. carolyn conan is at the conference for how business is responding to the latest political change. is thateast we can say the cabinet shuffle is fair he will received in the business community here. they say that the new economic be with thel keep the and will pro-business policy. responsibility and

that includes 41 billion euros of tax cuts for companies. exclusively to one of the biggest utilities in europe that specialize in waste management. here's what they said about the new government. >> i think it is important to have a single cabinet with a team working. the situation has been clarified and i think it is good for the confidence and that is important. it is good for the rapidity of action which i think are necessary. now, of course, we have to see what is going to happen when the prime minister plans. says this clarifies the situation of french politics and

it is not expect any more political turmoil in the next few months. >> businesses want something pro-business. clearly. they want certainty and a clear path. the primus to her was at the conference yesterday. how is he received by the business community? was at thee minister conference yesterday. how was he received by the community? >> he received a standing ovation. you may be surprised to hear about the socialist leader whose speech was all about giving infidence back to business order for them to invest and hire. 3.3 million jobless people in france. he wants to accelerate the reforms and he says that taxes in france have risen too much.

is france's largest sure. sharer. he said something pretty interesting about the criticism of austerity. >> it is ridiculous. we talk about austerity and no austerity. you have gdp and social spending. where is the austerity question mark we have had no budget cuts. we would not be in the position where we are. all of the spending has been creating incredible deficits with debt. we are converting. it is a crazy country sometimes. we have had no austerity. so, you know, to say that, we have to undergo structural

reforms. >> he says that they have no austerity in the past government and that is an interesting comment from the ceo. we will talk to more executives and, in about half an hour, tune in for my exclusive interview with the head. >> thank you very much. fantastically outspoken. carolyn conan will be back later on with further comments -- comments from the conference. >> will have an exquisite conversation right here with -- we will have an exclusive conversation. we will do get into numbers when we return. -- dig into the numbers when we return.

>> it is time for company news. advised on developing a program to buy asset-backed securities. they said that the central bank is intensifying preparations to buy them as they push to reform the economy. reported a surge in profits.

net income almost tripled the last quarter to under $2 billion. investors will see this before public in whats could be the largest american ipo. considering a sale of the garden center group. they are run. they bought the business two years ago and the group could be valued at as much as 7 million pounds. -- 700 million pounds. reported results a few minutes ago and joining us now is the recruitment company finance director. it is good to see you. au are calling the result strong set of results ahead of schedule. give me a sense of where they're coming from. are you collecting a lot of air miles? countries have hit

all-time records and a lot of that is structural growth. doubt, the star areas are germany and the economies that did well. they increased the profitability. what a difference the year makes. this year, 11% growth and profits of 20 million pounds. are you seeing in the wages market. it is reducing wages. what do you see when you come in to do this? >> it is rubbish. it makes no sense in the real economy. is 2%-3% payeeing rises across the board and the other thing that we discussed is when the markets get better and things cried. they have secured a deal and they are going to leave. and we one last week

offered 16,000 pounds to stay in that job. space,professional companies want to hold onto good people. if anybody leaves, they replace them immediately. our confidence is in our candidates. , they are a lot more confident. saying that wages do not matter. it is productivity. they are investing and personal and equipment. that is a good sign. >> yes. we discussed that frequently. large part of jobs growth has been in sme. as soon as we get to the midlands and above, they have 15% and it has been small company saying one of two or three things. i have spent no money on i.t. and i need to hire somebody in

it. and need to hire employees i think one or two more people. if anybody leaves, they replace them. >> it sounds like you are far from the overall statistics. we were looking at volatility and the u.k. was less productive than other countries. the trends on wages are a number of older people in the workforce and other people have theories about self-employment. you are saying that we see different metrics. >> we get quickly to a skills shortage. you can imagine little or no investments in apprenticeships, training. you have architects qualifying and being taken off. you do not need an uplift all stop we have seen a lot. we have an architect now and it

is a strong financial position. there are employers that want to keep this. >> what do you look at these businesses question mark australia is having a hard time. you look at europe and you look at the breakdown. the good growth freeze up. where do you think of the pent-up demand is that we are not seeing yet in the numbers? >> we are seeing places like spain and portugal and the market is rebounding strongly. we are up 20% in this year. what we are talking about is surviving the downturn. if they are not enjoying the job, why would you stay there? they are changing more cautiously than before. it is like we have survived lehman and gotten over the european crisis. there are issues going on in the world and not everywhere is perfect. that is the last couple of

months. there has been no bad economic news for 12-15 months and that has made our cut -- our candidates more confident. >> we are present in russia. russia has been strong for you. what has happened in recent -- in question mark >> recent months? >> you have decision-making. and big legal firms. they are not investing much. equally, if you are a candidate, are you going to run from one issue to another question mark >> -- another? >> does this stop you from expanding question mark >> with have a long-term strategy -- from expanding? >> we have a long-term strategy. writer theg to storm. fortunately for us, the rest of europe -- we are going to ride through the storm.

fortunately for us, the rest of europe has not seen an impact. there is no doubt that economic growth is impacted. automotive is a harder marketplace to go than a year ago. you have daimler and tougher markets. the backdrop of where we have been, the job market is better. you have trading starting and continued good growth. we will be back in a months time. >> one of the big things that came out are the great and the good of the economic world getting together and talking about a skills gap that is created. we have people at the upper end and the bottom end. they are squeezed in the middle and try to get their head around. do you think that is happening with the candidates coming through? -- remember being asked

what skill someone should have. we think about it and the jobs market. everything is being automated. absolutely. for lower skilled individuals, less jobs are around and they can be less choosy. there are lots of opportunities in companies are try to get better information, which changes the nature of the job market. >> thank you. paul, the finance to rector. >> the worst ever loss. why are shares rally in question mark will be live for a breakdown of the numbers next.

>> shares are rallying. australia possibly to his airline says that they will return to profits. here with more is paul allen. we have a loss and a forecast of a profit. >> that is right. it is a tale of two stories with the results today. the big number was absolutely billiong 2.8 dollar loss.

reflect a fairer value of what the fleet's wort h. ct the moneyefle flowing through the business. the underlying losses stripped away and the write-down was $646 million. that is being spun as a good news story because a lot has happened and it was expected to be north. the story of the market is trading. he is promising to return to profit as soon as the first half of 2015 and it is thanks to the transformational program that sheds to plan 5000 and staff and new planes and equipment. the sellers have been frozen and there is a low-cost airline.

it will be spun off into a new unit. that they arean trading on today. the shares are closing. >> very quickly, can alan hang onto his job or not? deliver on has to the first half promise to return to profit. there are plenty of people. among them is the independent senator who gave them the kiss of death. the company is a fiasco and he is calling for alan's head. not too many people are willing to go that far at this stage. say. fair to we have breaking news. we have a big deposit taker

in russia. sit with theofits first half numbers beat. that is above the estimates. the big thing is the sanctions. it gives more ability to exert pressure on russia and they ability forthe bonds and stocks. ceo and from the deputy there are no problems with financing for 2014. and 3.5 debt this year maturing next year. they see no decrease. ands a beat on the headline

that is in the face of all of the sanctions. >> we will have more only come back. we will take a short break. we will talk all of .

>> welcome back to countdown. it is 7:30. the dollar takes the backdrop. we are looking at the dollar index and the biggest decline are. that is the index. that is the backdrop to the trading day. it is expected to come in under the 4% level. there is the euro swiss.

the question is this, will the swiss national bank intervened? thomas jordan says that there is no measure to defend that. they may have to move it and the debate has been explosive. they're are having a look at the dollar when it comes to data and what is driving it. it is up against all 16 major peers. keep an eye on iron ore prices. they are under war pressure. latitude to be

accommodated to the currency. >> a hack attack against j.p. morgan and four other institutions. it is thought that russian hackers are behind the security breach. officials believe the attack could be in retaliation to u.s. sanctions on mascara -- moscow. the u.s. says that russia may be offensive icounter rebels in the ukraine. it has spread to previously peaceful areas. the prime minister fires back at critics over the truce with hamas. he described as a political and military victory for israel and he is being criticized

by allies and opponents for breaking a truce. >> plenty of interest for french construction and a media conglomerate that is in the spotlight. we have a big takeover looming for the brazilian assets. we are all about the telecom space this morning. where do we start? do we have the results? >> let's look to kick things off because they have cut their forecasts and they say that sales decline 1%-2%. this is a company that is seeing construction pickup in france deals backreed on when the market was not so hot.

it is going to be supported by international growth and they have a stake. can they stay out? prospects and when it comes to telecom's, the third-biggest player could have an issue there because the profitability and cash and rates have been deteriorating. >> the number one player is orange. a price war. thathave not cut the price they wanted to sell and they did not manage to stack up with they were selling earlier this year. the governments and the players themselves only wanting three because the competition is too hot.

>> they butchered that. >> they disrupted the market. they came in. this is what has knocked everyone. you have the chief executive saying that they are down 40%. to, this could spread packages as you get your competition. >> some markets want to hold as competitors and some shrink in germany. past byelefonica regulators and that is a precedent for france and other markets that they will be allowed. >> we increasingly see the whole of europe and we enjoy the boundaries.

the last year or so. >> they say they're going to get this and you have to hit these companies very hard. they do not have roaming charges so much. it will help you in those respects. thatways points out to me the united states has three players. >> yeah. >> maybe we need to reduce the boundaries and increase the consolidation. >> you've got to talk to brazil. >> it continues. >> who fits in better? >> vivendi had a wonderful statement. today and they have to debate what the offers mean for them. if you look at telecom italia in terms of the company, 1.7 billion euros of cash is coming.

you have a 60% stake if you are looking at voting rights. if you are looking at voting rights, is 22%. you have telecom italia and you have 50% in the merged brazilian unit. so, they have exposure to the growing market and a telecoms asset that does not have to manage itself and could give them access to content. >> the size of the share. >> pretty phenomenal. cards the telecom italia on the table. it increases this morning. you have 4.6 6 billion euros in cash. it is slightly less than what telecom italia is offering. they still get a telecom italia

stake at 12% and they could exchange a third of that into telecom italia shares. a bit there. you get even more cash. >> and may come down to how much this is about brazil >> exactly. and how much of this is you wanting money coming your way. >> it is presumably the pension fund. i would have to check. >> that is a lot of a tie-in companies. >> generally is another. right ofs a boating 22%. >> the company has to disband. they have the ability to vote through strategy and disseminate. you can see the strategic group

-- strategic appeal there. they are holding anyways through the other one. >> exactly. they need to decide how much exposure they want and it would make the shareholder cleaner going forward if they had a big holder. >> are they going to let the options up? >> is the consolidation. they want to keep the competition. they say they want to keep the players. it is a young market and you have consumers who want to access the internet. they have about 12% of the internet market and some of the fastest-growing. willing other player the regulators and saying that they will keep improving competition. saying that they

need more accessing the videos. they need better. >> let's see how they open at the start. there will be something. feastbitrage will have a with merger arbitrage. coming up next, we are talking to a man who has made it his job to create a million jobs with france. we will bring you the exclusive.

>> time for company news. a tie and banks are borrowing the european central bank is having an auction of cheap cash to boost lending. the largest bank is asking for 7 billion euros in the election. profits were rallying and we spoke to the ceo.

fully committed to this business and turning it around. we are delivering on the factors on the controls and the business is turning the corner. we are delivering record levels. the management in the border fully committed behind that. glaxosmithkline starts clinical trials of the a bowl of laccine as soon as -- ebo vaccine. > further down the lawsuit get, the worse things look, compared to last year. the revenue rose year on year. 5.0 billiont

rubles. almost half -- less than half of what they reported. that level was a year earlier. the margin has fallen and they reported the bottom line of it all as they lost against the prophets the year-earlier. ,he russian airline business the crimeaefore development took place, they've washed and they are saying that they are committed to the model. they had stopped the airline from functioning. >> and only lasted about six weeks. with sanctions. and went to the wayside. they are committed to the model and hope to launch it by october. there are a number of european airlines flying there and have

expressed interest. >> the have fallen victims to the vagaries of the russian stock market. the shares are down. >> down this morning. >> interesting. we have the numbers. the net income beat and the stock is down 1%. we are seeing bad loan provisions and recession on the way. not a recession. certainly a downturn. >> let's talk about the french politicians and ceos. ofs follows a week considerable political turmoil in france. bloomberg is out the conference with a guest. >> yes. and they to in paris represent some hundred 50 billion -- 750,000 companies. i am happy to be joined by the .ead and the ceo of a company

great to have you on the show. the prime minister came here on day one yesterday. how was this speech received five the business community? >> it was interesting for employers. it was his speech that we had always pictured from france. it is a speech and a historical speech where he was pragmatic and he was very willing to challenge things in france. it was a speech that could we do trust in the way business. >> is in a love affair with the business executives? >> i would say that we are waiting for the actions and the steps. trust is a thing that is long to happen. we had a nice speech. very nice. let's wait for the right one and i think that we are in a good mood to make things happen in france. >> there was only one big change

in the reshuffle and it was maybe -- mainly the new economic minister. waywe going to change the we do economic policy in france? >> he is an interesting guy and he knows the business and the worldwide business. he is very good at this and a smart guy. .o, i think it is good a good symbol for all employers. saystors all over the world that things are changing in france because of this. it was brave and courageous. they had good news for the community. >> the reshuffle has passed a debate over austerity measures and this is criticized by the rebels of the socialist party.

francois hollande become a president of austerity? >> it is a question of pragmatism. ofiness is a key world inwth and there is growth france. we need competitiveness and trust. it was voted a few months ago. competition was good. the second is trust restoration in the country. combatwe will be able to growth and confidence with employment. i hope that france is back in the international again. includes 41 billion euros of tax cuts for companies.

are you seeing a tangible impact? >> not yet. the germans, you know, they restored confidence and created after the decisions in 2003. it is a question of time. step andng is a good courageous. we have to encourage that. we think the gap would germany is 100 billion. i think we have targets to say that we want a million and have to beet, it is important consistent and brave enough to do it. yesterday, he had the courage and the tenacity to do that. this is important for the

employers and the people in france. what is your opinion on this. the new tony blair? >> i hope so. i hope that yesterday would be historical. we are going to encourage that. to ensure that people in business and key elements will be able to have that in place and there is help to do that. >> thank you so much for being here. of -- d >> thank you. checksetting a few name at the conference. >> coming up, good news or bad news?

figures from the eurozone. we will get the data and the market open.

>> welcome back to countdown. jonathan ferro is driving the bus today. the stocks are at a high today.

morgan stanley said that if it , payar least worst option the bond market less. >> that is a way of looking at it. i have not seen anyone buying german bonds with a negative yield. burden --body had a if somebody had a burden -- >> i agree. forget about stocks. i'm going to talk about bonds. you have bank of america and the index near a record high. near a record high. remarkable and a stunning turnaround. yesterday all stop remarkable. -- it turned up 1% yesterday. >> remarkable.

>> that is right. >> thank you very much. be -- jon willl be driving the on the move bus. we will see you again tomorrow.

>> welcome to on the move. we are live in the city of london and moments away from the start of european trading. we have a stacked show today. here with me is caroline hyde and carolyn conan. the news from the newsroom. >> thanks. we are talking telecoms all italia and telecom telefonica. we dig into the deal and we show the cards on the table. had we dig into what looks the best. the competition in france is hot

. they cut the forecast and i will be back later in the show. videos areusiness gathering for the second day and it has been a busy week for france. the prime minister spoke here and received a standing ovation from business executives in france. some compared him to tony blair and i will tell you more about this in a moment. >> is that a good thing? you can take a view on that. a lowerres indicated open and the dax is down. the footsie is lower after take weeks in the european equity markets. the man with the open is manus cranny. >> equity markets are taking a breather. that is what we saw yesterday on the one-month high.