>> e.c.b. president calls for almost trillion dollars of stimulus to boost growth. >> some of our members were in favor of doing more than just presented and some were in favor of doing less. we have an exclusive interview. > ukraine figures a cease fire may be in sight. we are live in wales from the nato summit.

welcome to countdown. and business leaders gather for . e annual forum e will keep you up to speed. the professor joins us. international se chairman joins us later. boost al bank will funding for the euro zone economy. >> the council decided to purchase assets. it will purchase a broad portfolio of simple asset-backed securities with underlying assets consistent of claims

against the area in the financial sector under an a.b.c. purchase program. >> it pushed the euro below $1.30 for the first time since july, 2013. the decision was not unanimous but as the bank president opposed the new stimulus while others pushed for me. >> it was discussed. there were some of our council members were in favor of doing more than than just presented and some were in favor of doing ess. it is the mid road. >> three things interest me. one, how much are they going to spend. he is saying $700 billion. >> back up to the $2.7 trillion.

>> that it was in 2012 versus $2 trillion. what are you going to do about yen? seemingly according to officials within the e.c.b. >> and surprising we know germany has been against what they see as -- giving money. >> financing governments. purchases b.s. problematic. hat are you going to do yen. you didn't have him on your side and the market reaction. >> the euro, lowest since july, 2013. clearly the market was really quite struck what he pulled out of the bag. >> only so few expected it.

basis 's face it, 10 points. >> he says we are done. >> can't do anymore. it's a statement of intention and looks like he is going to try and pull germany along. what is interesting of how much will he spend, how will they buy these asset-backed securities. if you go into that market now, very hard to purchase at the moment. they said, takes about three months to get your hands on one billion euros of this sort of debt and you have to hold the more risky. they say they are not going to do that and going to the safest. how much that really takes risks off the balance sheets. >> and causing banks to put

capital aside when you buy the less risky debt. they don't hold capital aside. >> ron, give us a sense of what is happening on the ground this morning. >> the ukraine crisis dominated the summit yesterday and promises to dominate it today. the president of the ukraine was seemingly everywhere yesterday announcing he is prepared to introduce a ceasefire as of 2:00 p.m. kiev time if the rebels do the same. there are peace talks this morning in minsk and the ukranian president says if those are successful, he will

introduce a ceasefire. don't get too excited. we have been here before and secretary general of nato said the last time the russians had a peace plan, it was simply a smoke screen so they could continue to advance their forces. it will dominate the conversation here in south wales. > careful optimism indeed. ron, talk about sanctions as well because the e.u. is said to be decided today on taking further sanctions against russian companies. >> the e.u. announced last week they were imposing a deadline of today on themselves. we do expect a decision on sanctions and given what i have heard from the e.u. leaders that re here and the results of the

ranian's president and the french president and italian prime minister, they believe sanctions should go forward simply because they feel what the russian president has already done, by their judgment, deserves more sanctions. perhaps the more interesting question right now will be what will those sanctions be. merkel said they are along the lines of wall they have faced. >> you have ukraine on one side and isis. what's the situation like on the ground now just before dawn

breaks? >> well, you know, yesterday was a very late evening. the world leaders went to a castle. they started the process of discussing what could be done with the islamic state. yesterday, it was ukraine. last night they only began to discuss what they should do in the middle east, in syria and iraq. it would appear that britain is getting closer to agreeing to join the united states nrm air strikes should the united states choose to do that, maybe even inside of syria. there are a whole series of steps that can be done including a request from the iraqi government itself. in any case what we would likely see is a coalition of the willing. in other words, not something at would be nato-wide, not that the alliance would embark

on but a narrower coalition that would involve striking from the air islamic forces. and talk about having a very, very modest nato force in iraq. should the iraqi government request that to train their iraqi forces. but that's really a very model -- modest thing to kind of show presence on the ground. >> even managing to squeeze in a visit to a primary school. .> first interview of the day ♪

> i think it's a good decision because we are experiencing low inflation and give all the stimulation to support the growth in europe. >> that was president of the

european commission. welcome back to countdown. the forum draws business leaders on the back of announcing a stimulus plan. e have an interview with chairman roubini. good morning, thank you for joining us this morning. >> good morning, great pleasure being with you. >> can we start with the e.c.b. measures announced yesterday, do you think those measures coupled with the ones announced in june will lift inflation expectations and remove fierce of inflationary spiral? >> i believe that the movement decided yesterday will go in the right direction and the most

significant part of it is not even the conventional part of it e.c.b. has ow the gone into conventional monetary policy. what they decided is quantitative easing and inclosing the balance sheet. it doesn't really matter whether you buy private assets of e.c.b. as decided or public assets. what they have decided to increase the balance sheets towards the targets. that $1 trillion increase will have a significant impact over time together with other policies over time and structural reforms. what do you think we can expect? how long will the program last

for, will the e.c.b. be tempted over time to buy risky aversions of asset-backed securities? i know we'll get the details next month, but what are you expecting? >> first of all, the most important part of the announcement they will buy existing asset-backed securities not only a.b.s. of new loans but to get new loans is going to take long time. the regulations have not changed so you are doing something like what the fed did. and buying the assets, existing ones, new ones. secondly, they pointed out that they don't want to take the credit risk and concentrate in the senior trenches of the a.b.s. securities and question

of whether they will buy at levels that are more risky without a guarantee of coming from e.u. governments. they are not going to take that credit risk so they will concentrate in a arch a or slightly below that. buying the statement by in large volumes if they decided to buy new securityized loans, it will be very slow in the first place. >> do you think he is buying himself time and part of the eason could be this supposedly spat with the bank president? is he buying himself before the that m to launch outright this is light essentially. when do we get full blown?

>> i mean, first of all, they are not easing directly because they depend on the demand for these new loans by the euro zone banks. while increasing the balance sheet is going to buy a.b.s. is a form of easing if you believe easing is the central bank without purchases on the asset side increasing the liability side. directly not quantitative easing of the banks but a form of credit easing the same way as they cover bonds. but at this point, quantitative easing gets started given the objections of the bank and others, not buying yet.

but once you start to buy a.b.s. and start buying covered bonds, the next step might be buying a.a.a. corporate bonds and what's the difference. similar risk type. therefore we are on the direction that eventually may lead to purchases of bonds. why? the amount of existing a.b.s. and covered bonds that are senior is limited and if they want to increase the balance sheet by $1 trillion they will run out of bonds to buy and the next step will be corporate bonds. so effectively quantitative easing has already started. >> on the issue of the phrase you uzbekistanned, trying to compare -- used trying to

compare. this is the monetary side and he is calling on governments to do more on the fiscal, structural side. phrase ture using the can we see fiscal, monetary and structural fire at the same time within the euro zone, because that's the key, isn't it? >> yeah. that's the key they argued that in addition to working on the monetary policy side, the right fiscal policy that implies less in the short run and continuation over the medium term and you need structural policies that are going to increase on the supply side not just on the demand side. now the good news that they dieded to go ahead even before there has been a credible

commitment on the structural and the fiscal, they are doing their own share of this activity. on the fiscal side there is some room for flexibility even within the current e.u. fiscal rules for giving more time for countries such as the 3% budget targets on the deficit or already achieved like italy to reduce gradly. the new head of new commission is going to provide that flexibility especially for greater structural reform. yes, there has to be acceleration in france and other parts of the euro zone but the impact takes many years. you cannot wait until only the supply side kicks in. it takes years. some of the weakness of the euro zone is cyclical. policyt's where monetary

comes into play. >> we are seeing yields on government bonds lows. we saw yields on a number of two-year notes across eight european countries. to put simply, would you buy european bonds at these levels in >> well, it depends. if this program of quasiquantitative easing is going to be effective, inflation going to go higher and signal that this program is credible will be a gradual rise in other yields in the euro zone because they will signal that inflation is higher and growth will be picking up. but in the short run, the the

impact effect of the announcement and starting to buy securities might lead to further spread compression in credit spreads and can keep long bond elds in the euro zone like germany at current level. it would be a signal of the success when those yields are going to go higher rather than lower because that means it's credible. are >> are you worried about the performance of various asset classes because of the difficult verging policies of central banks? the e.c.b. is heading in one direction in the same direction that the b.o.j. at the same time that the b.o.e. and the fed will tighten policy. what are the implications for volatility and performance of asset classes in the near to

medium-term from that difficult veeringens? >> well, the difficult veeringens is justified by the economics. inflation is getting higher. but in the euro zone you are almost back to recession and inflation is close to zero and growth has been faltering because of the consumption tax. the differential in growth rates and in the inflation rates explain the movement for the currencies. the euro has been following relative to the u.s. dollar. of course, there is expectation that the fed and the bank of england may start exiting near zero rates and the expectation that e.c.b. is going to start quantitative easing and that's going to have an impact on both

currency. i expect further weakness on the euro and yen. and will lead to difficult veeringens in bond yields. t why they have been falling despite of strong economic growth in the united states, oon yields 1%, international portfolio investors are switching away from japanese bonds to u.s. bonds. what they do is also impact on long-term interest rates in the united states. that difficult veeringens on the ond side will be less.

>> japan is faltering and emerging market in china are mixed. some of them are doing better, some are doing worse. and i would expect that the chinese are going to slow down towards 6% or below that. we are in a global economic recovery, but there are meaningful starts over the global economic outlooks. > the bank of japan that the isis in ukraine was his best concern. where does russia and ukraine on your worry table right now? >> certainly there are many geo

political spots from russia, ukraine, to what is happening in syria and iraq. financial market these years have not strongly reacted, take iraq, 90% of the oil production is in basra under the control of the shiites and there has not been a shot to the supply of oil or in the situation in ukraine and russia, there has been a cutoff of supply of gas to ukraine and not to europe. therefore while the factors are a matter of potential risk both for economic activity and full financial markets, as long as they are caped and don't have an impact on the direct supply of gas and oil, their impact will be limited. we don't know yet how many of .hese

that's the risk of maybe a terrorist attack. > thanks for joining us today. ♪

>> welcome back. euro against the dollar, dipping below 130 for the first time in ver a year, lowest since july, 2013. all sorts of measures announced yesterday, such as an sset-backed security and billion euros.

bonus bank president. markets don't care the euro fell. bond yields in eight european nations on the two-year front selling in negative tower tower and european money markets fell o record lowest. >> these are the bloomberg top headlines. called for almost $1 trillion in stimulus to significantly steer the balance sheet back to the higher levels seen in 2012. >> the council decided to start private g nonfinancial sector assets. they will have simple interest-bearing, asset-backed securities.

>> 13 of the world's biggest banks have been accused of banking u.s. antitrust laws. arclays, bank of america and stigroup. and comedian joan rivers has died at the age of 81. rivers was admitted to mount sinai hospital on august 28 after going into cardiac arrest for a routine throat surgery. u.s. department of health is looking into her death. >> apple and samsung, china's biggest network of phone. the number of phone makers will shrink to four. we played with their newest and joins us now. talk to us about market share. they sound like ambitious goals.

>> their plan is to take over apple, but to do so they need to t into samsung's 25% apple share. in an interview, the head of their consumer unit, he acknowledged these are ambitious goals but said the race is a long one. >> i'm not humble. can see that in the future.

>> that means the lg's and sonies of the world may not survive. about their phone, six-inch screen and takes it directly to samsung and released their 5.6. it's exciting phone and by sharp, i just don't mean the images but the actual size. you could cut some cookie dough, it's a heavy phone. another aspect of this, they are focusing on europe and asia. they say it will go to the states but eventually they will have to play. have a listen.

>> it will start at 500 euro. most exciting feature, battery life, two full days. not just phones here at this conference in berlin but your connect at home. i took a look earlier at a refrigerator that can take a picture of itself. a camera inside your fridge if you leave for the store without checking what you need. text your fridge and sends you back a picture of what's inside. all part of your smart home, a mix of products for sail and future concepts. this bathroom mirror from toshiba syncs. >> you can see that information as well as the schedule on the weather. you can have a little lean lunch today. >> if my bathroom mirror told me

i needed to have a leaner meal, this will show me how to cook it and if i'm struggling with my meal, i can come down here, call my mom, and she's going to walk me through it. there are two reasons why a fully connected home may stay in showrooms like this. one, a common language for all these machines to talk to each other. and two, security. how do you ensure that the home stays private. on the other hand, who really ares about my dirty laundry? >> who should be interested in hacking in your domestic appliance? who should be interested in what you have in your washing machine? i doubt someone is ined in that. >> may not be that interesting but first thing in the morning i don't want people to know how little i exercised and how much

i ate. >> i mix my whites with my colors and have yet to see any tangible detrimental effects. i think you can mix whites and colors. >> was that your mom's hands or was that a pretend television mom? >> it was a pretend. no disrespect to my lovely mother but she is not that sophisticated. he loves videos of children. >> thanks very much. ming up, the latest from the forum, jpmorganchase joins us after the break. ♪

>> bp charged with gross negligence with setting off the biggest offshore oil spill.

the decision may be forced to pay billions more for the 2010 gulf of mexico disaster. the judge rejected bp's argument saying that its employees took risks that led to the ladgest environmental disaster. trying to win sales dominated by apple and samsung. the smartphone is waterproof and comes charged for two days. and apple is planning to unveil new iphones and they are being nvestigated for unsafe labor practices. a report by two n.g.o.'s

documented four unpaid, overtime and improper handling of hazardous materials at the factory. hour away from the european equity markets. let's look at today's newspapers. >> i knew her from "fashion police." joan rivers died at the age of 81, working right up until the end has died with having an operation on her throat and underwent cardiac arrest. and it says that people wanted her on their chat shows. everything she would talk and joke about and her husband's suicide and 23 years they were married. he then committed suicide. ironed his d me she

face. very sad. arious and real inspiration that she was working right up until the end. the plastic surgeries she said, better a new face coming out of an old car than an old ace coming out of a new car. is is joan rivers and she is criticizing a celebrity. she said aliz begget taylor is mayo on aspirin. >> we have to come back. >> coming up, the latest from the forum. jp morgan chase international

chairman dr. jacob frenkel will join us after this break. ♪

>> heading back to where the forum is taking place and his outlook on geo political situations in the market. nd we had rue biny saying what

has been unleashed is quantitative easing, do you agree? >> well, i think we should not give it a name but it's a very significant move. significant move because it deals precisely with the issues that were of concern. of course, interest rates have been lowered to the lowest level in history in a way, but the most important point is that in the past, when the european central bank expended its balance sheets and expended its liquidity creation, the bank redeposited into the e.c.b. and the mup did not make its way to the economy. what the e.c.b. is doing today, first of all, it reduces the incentives of the banks to really deposit the money in the e.c.b. because they will get now

a lower renew mexico ration. more importantly, the e.c.b. announced it's going to buy asset-back securities. the important point is, it is now committed to make sure that the balance sheet is actually expending and remains expended in a significant number -- they were talking about the trillions and that's an important action. and the announcement, the very announcement that comes in this way and the willingness of the e.c.b. to get into what was the territory for it, is an important move. is arkets are reacting, but there a concern that they are limited to the safeness of these assets? how much will it take off the balance sheet? >> the purpose is to make sure

that the economy gets moving and the liquidity is being created and being turned into the marketplace and that is the aim. let's remember, where we are now in europe is that inflation is significantly below the objective of the e.c.b. economic growth is significantly below the trajectory that europe needs and wishes and what the e.c.b. is doing and saying, we are going to inject liquidity and careful to know announce and explain, it is to provide governments with greater time, longer time to actually do what is needed. there are a lot of structural issues that needs to be addressed, still unemployment in europe is so high and in some places very, very high and the reason is structural.

printing money will not solve that issue. competitiveness in some places have been eroded. treating money will not solve that issue. however, in order to allow those companies to invest, to carry out their plans, they do need the liquidity and that's where the e.c.b. comes in and it is a significant, positive move. we have tom remember -- we need to recall at the same time, the united states is talking -- the federal reserve is talking about exiting from it's quantitative easing. what it means is a direction of monetary policy of the projected monetary policy and the directions are going to difficult verge which is the reason -- die verge, which is why it is appreciating. and another positive move to the

european economy because it will boost their competitiveness in international markets. >> the issue is economic. it has been the tradition, the concept that the e.c.b. does not purchase outright government bonds because the e.c.b. is not supposed to lend directly so to speak to government. and however, that is why germany is having reservations. the observation is to inject

liquidity in the market and what assets are being purchased. die is aware of the veeringens of views. there is some more nigs in the reserve and thinks about that instrument of buying directly government bonds. but i hope very much of what has been announced today will suffice and will not require the crossing that rubicon because after all a consensus in the governing body of the e.c.b. and germany is a major country. > you talked about the divergence between europe and united states. when do you see interest rates

rising? >> i think there is a consensus of forecasters that it's going the ppen in 2015 and after jackson hole speech, the move was to move it a little bit more forward towards the spring. the issue is not exactly the timing of the actual rise but relative the confidence that the markets have that it will rise and it will be a good positive move. and the reason is that the u.s. fed wishes to bring about what is called normalization. it means they will have an interest rate that can be moving up and down and now that it is so low, there is no down. it will be good news when circumstances allow central banks in general to come back to their normal operations of us interest interest rates of their

main instrument rather than unconventional measures. by the same time let's not forget there is another portant nexus taking place pfment there is japan and the u.s. at the present time. japan is continuing in its monetary policy, where the u.s. is talking about reducing the rate of expansion, not contraction. and this again brought about a change in the exchange rate of the yen, vis-a-vis the euro, which works in favor of the japanese strategy of raising and moving the economy forward. we talk about monetary policies. those are important policy instruments but the player that need to take place are the government, because that's where

the structural instruments are. and if these are structural challenges that now slow down the economic growth. >> talking about the bank of japan, it has stated that russia and ukraine is the biggest risk in terms of the economy. do you agree? is geo politics the key here? >> it is a major issue and has not been a major player in the past and now it is. russia and ukraine, it is terrorism in general in the world, it has brought to the surface important considerations that will affect, might affect and hopefully will prevent from effecting the performance of the world economy. that is an issue. not an issue of monetary policy but for market confidence for the openness of trade, for the

area of energy and the like. >> is the bank of israel doing the right thing in terms of geo politics? been doing the correct thing? >> the bank of israel is doing the right thing. it has been doing the right thing, but i normally do not comment about economic policies of the bank of israel. that's the privilege of the former central bank governor. >> been wonderful speaking to you and very beautiful setting. thank you dr. jay could be enkel -- jake could be frenkel. >> we'll have more live from south wales and the nato summit.

♪

>> the ecb president calls for almost one trillion in stimulus to boost growth. >> nouriel roubini told "countdown was moved the next -- "countdown" the next move may be buying foreign debt. >> increasing the balance sheet direct link -- directly. >> a cease-fire may be in sight. we are in south wales for the latest from the nato summit.

welcome to "countdown." >> over 60 world leaders meet for a second day of the nato summit in south wales. what will be on the agenda today? i think it will be a lot about ukraine again today after it dominated the conversations yesterday. the ukrainian president himself was seemingly everywhere. even got himself into the nato family photo even though it is not a nato country. he impressed everybody yesterday with his optimism saying he hopes to introduce a cease-fire today at noon london time. that is 2:00 p.m. in kiev. if talks in belarus go forward and the rebels agreed to introduce that cease-fire as well.

he made those comments throughout the day and appeared in the evening in a press conference with the secretary-general of nato saying again he is carefully optimistic that the cease-fire will be introduced. the secretary-general of nato said not so fast. every time russia has discuss a cease-fire with the ukrainian it has the ukrainians, thus far been a smokescreen. the talks in belarus and the prospect of speeds -- apiece in ukraine, although most people theykeptical of that and are likely to be focused on that matter today. we will not stop our negotiations about sanctions. we have to continue this plan.

also have what happens on the ground which may be more important. however, as you just heard from the foreign minister, it is more likely that sanctions, which the eu said it would impose today, will go forward. we may get a peace deal. but it is a big may. but the european union says perhaps sanctions should go forward. they imposed a deadline of today on themselves to go forward with the sanctions that the eu leaders recommended last week. >> they are trying to bring putin to the table. those sanctions if we get a move toward a cease-fire with the rebels say. give us the mood on the ground and wales with not just the

ukraine being discussed but also the islamic state. whate islamic state and nato can do to counter the islamic state is something that is being discussed here. it would have gotten more discussion perhaps if it were not for the immediacy of the ukrainian crisis. it looks like nato will not do much more than reconnaissance, intelligence work. but we are hearing about a possible coalition of the willing, using the term phrased by president bush when we were looking at the war in iraq. the idea would be, if the united states decides to go forward with airstrikes against the islamic state in syria, britain might follow suit and join the united states in that, particularly if other nato countries individually agreed to help as well. we shouldn't get too ahead

of ourselves on that because, first, the iraqi government would have to ask britain and the united states, first and foremost, for that kind of assistance for it to be legal under international law. so the alliance as a whole is unlikely to do much. there is some talk about having a very modest presence of nato trainers in baghdad training the iraqi army. but absolutely no operational role. yet we might get this on the sidelines of this meeting some agreements where individual states come together to join in airstrikes. but it is still early days. >> live from south wales. thank you very much. >> the european central bank cut interest rates to record lows. it announced it will buy assets to boost the european economy. >> the council decided to start buying nonfinancial private sector assets. a broad would purchase

portfolio of transparent asset-backed securities with underlying assets consisting of claims against the euro area known financial sector under an abs purchase program. >> they plan to buy assets-backed securities pushed the euro below 1.30 since the first time since july 30. >> qe was discussed. there were some of our council members in favor of doing more than just presented and somewhere in favor of doing less. show our proposal instructs the mid-road. >> how much are they going to

spend? it seems as if the reason why they didn't go out for a full-blown qe is because of him. >> this is not surprising. germany has always been against financing what they see as the eu government and a sensitive about quantitative easing. we heard from nouriel roubini effectivelyit is quantitative easing. >> asset-backed securities would lead to buying aaa corporate that -- corporate debt. clearly, i think it was biding time as a rule. and your second point of course was the key issue of how much will they buy? it seems to be a maximum of up

to 7 billion euros which would take them back to where the balance sheet. was back in 2012. but how do you go about buying them? especially if they are going for the highest quality of asset-backed securities. that is what banks want to hold right now. they want to be holding the best set. asset-backed securities are riskier. and unleashing a little bit more of the money back into the market. that is what the main aim here is, unfreeze the markets. >> biden has already called it problematic. he is worried about risks on the ecb balance sheet as well. i was looking at the comparison of what the ecb is doing and what the other central bank said on. 700 billion compared to the bank of england 375 billion, the boj

570 il in dollars worth of debt every year. of course, the fed balance sheet is $4.4 trillion. billion because it was before. . it spent 3.5 trillion on mortgage-backed securities. compared to the fed, it is not a lot. >> look at the differences in their economies. we just had breaking news from germany that july production rose well ahead of estimates. may be germany is more amtrak. -- more contracts. you have the united states nonfarm payrolls. the fact that we will add 230,000 jobs. -- factoryng was at

output was up 10%. we have had a nine-year high. meanwhile, the bank of japan and the european eurozone haven't stimulated -- >> the u.s. is a key factor. it is new though the average from below the financial crisis. hereis definitely the key for the fed and for the bank of england. >> it really does show -- i'm sure that janet yellen and connie will have more to jab about. >> right. next, discussing everything ecb and u.s. jobs.

will come back. time -- welcome back. time for today's company news. bp was found negligent in the

against oil spill in american history. the decision may force bp to pay billion dollars more. the judge rejected the argument that others were equally responsible, stating that its employees to risks that lead to the largest environmental disaster in u.s. history. meanwhile, sony unveiled a new mobile device that doubled up as displays for playstation games. to win sales in a market dominated by samsung. it comes with a battery that stays charged for today's. days.t two is dispatching a team to investigate claims of unsafe labor practices. the factory in china make so many him enclosures for the macbook. geo'srt by two and

ngo's reported dangerous practices. it was the economists who we surveyed who were expecting rate cuts. were you among the six? why weren't you expecting anything? >> because draghi and the ecb have been slow about all of this. they should have done this a long time ago. they like to move very gradually. we thought we would like to wait to see how the cro works out. and as they go through the stress tests and all of that. it seems they wanted to spread it out longer. part of the trick is to surprise the market. >> which he does again and in and -- again and again and again. >> when you say they move

slowly, is it that they have to because they have so many different views on the european central bank. qecertainly, any mention of is almost anathema for the germans. they have to move slowly for that reason. >> does this mean qe will happen out right? this is called qe light. to probably purchases of corporate bonds which would lead to purchase of sovereign bonds. are we on the road to outright. ? >> i think we are -- i think this is qe. the question then is what sort of qe are you doing and how effective is it? the most effective kind is to make sure you are buying assets from nonbanks. if you buy it simply from banks , all it does this conflict with more money in banks. but if you buy from pension

funds and so on, you are increasingly broad money supply directly. >> these asset-backed securities, the safe ones, banks tend to hold on to maturity. >> some will sell. some banks may want to hold them until maturity because that is part of their intention. with pension funds, it depends on the price. buy riskier assets. >> which is one of the way that qe works. the other way is by putting more money in the system. compared to where the exchange rate was six months ago, they have done a good job in putting it back. >> they can't with the excess reserves at the ecb because the deposit rates have gone down to .2%. you might as well put them in a german two-year bond. it is not as negative, is it? >> yes. absolutely. interesting is the

ultimate goal is to get money to the small and medium-sized and prizes which is so hard to get -- medium-sized enterprises which is so hard. but a lot of these asset-backed securities are not of the small enterprises.e do we need to reinvigorate that side of the market? do you think it will start to be reenergized? will we see new products come in to the market, not just old ones? >> banks have to get past this capital adjustment process. they will know whether they have excess capital or they need to get more capital. the rig -- the economy is recovering. >> today, germany is very good. >> the data is very good. i think we need to see stronger growth and that will lead to more lending. the risks are considerable. the uncertainty is considerable. if you have a weak economy, you worry about how safe he credits

are -- the credits are. >> september 18, that is the first lot. many saying the fact that he has cut rates to the lower bound proves the chances of more money gailey -- more money going into them. >> we are not sure how this will work out. that is one of the big uncertainties. we do not know how much will be there. therefore, we do not know how much qe there will be. i would rather see qe. it is more important than actually getting money into the economy. we will have to wait and see. >> it is all about average and policies right now. how much do you think the euro will continue to be helped with the fact that the u.s. federal reserve will be tapering back. the labor data will be strong again. we can look to the united states to be salvation in terms of the exchange rate. >> europe is still a very strong. you've got increasing qe.

whereas in the u.s. you have decreasing three. and we are getting closer and closer to the first-rate type. the data in the u.s. has been strong. i think it is likely to be another firm payrolls. you can also see an increasing sense of hawkishness in the background in the fed. maybe not with janet yellen. i think she's very keen to keep things calm. but on the fringes, it is interesting to look at the data and say it is getting stronger. >> will the u.s. go before the bank of england? >> i think more likely the bank of england will go first, probably in the first quarter. we are looking at june for the u.s. fed to make the first move. >> stay with us. head of macroeconomics at standard chartered bank.

>> welcome back. john, we were talking about the variance in policy being shown. the united states a stronger. the bank of england is also considering rates as well. is this a turning trajectory in terms of the u.k. now? how much are you worried about the tensions impacting the

stronger economies? >> i am a little the consent. probably more concerned about germany given its proximity to russia. i think you are have too much affect. i think the situation in ukraine is being contained. i am not too worried. financialt entitled illusion, reaching the unbanked. what have you uncovered? doing inpolicy makers developing countries to overcome these natural barriers to inclusion? thelmost 50% of adults in world don't have access to formal banking account or other services. there is a number of reasons for that. sometimes the bank is too far away. sometimes it is proving their identity. they don't have identity cards

or utility bills. sometimes the relations are very strict around this. the know your client rules are very strict. sometimes it is about changing the regulations. sometimes it is about technology. vodafone technology has been used in some countries. can you is the leading case and as a way to make payments. then there is the micro-finance industry which is providing small loans to individuals and sometimes arranged around a pair group organization. so there is a lot of progress and a lot of focus on it at the moment. we looked at this because banks are very keen. the new regulations around this are formulated in a very sensible way. that is a very difficult process. >> give us the statistics. you are saying that more than 2 billion current adults don't have access to a bank account. what sort of power could this unleash if they have access to

credit, able to borrow, able to create businesses? >> it helps a lot just in dealing with policy. a lot of for people have an equal -- have unequal income. they can't eat or pay medical bills or things like that. they can't pay for education. it is hugely important for the standards of living and also for those people to be productive workers, if you like. also, with micro-enterprises, if you can borrow a little bit of money to buy a bicycle or something like that, you can actually establish your business, get going. you could perhaps use some of his management products, insurance, which makes a huge difference to getting going. both enormously important for the standard of living and dealing with poverty but also to the micro-enterprise. >> thank you for joining us today. samsung flexes its tech

muscle in the world's first bendable tv.

>> welcome back. the scope back to check the euro dollar, one-year low. an interesting element is does this seal the fate of the euro as a funding currency? will it encourage traders to borrow in euros in the best of proceeds and higher-yielding assets? potential one of 44 carry trades funded in euros tracked by bloomberg made many

yesterday after mario draghi cut rates further. he said he will expand money supply by purchasing asset-backed securities. the latest decision by ecb cements the euro's position as a funding currency. the ecb is the first major central bank which isn't only pumping money into the economy but also penalizing tank for holding it. that means -- penalizing x are holding it -- penalizing banks for holding it. one-year low against the dollar after the big moves announced yesterday by mario draghi. headlines.e, top mario draghi has called for almost a trillion dollars in stimulus. the ecb president pledged to

significantly steer the ecb balance sheet activity higher levels seen in 2012. and also revive inflation in the euro zone. >> the council decided to start purchasing nonfinancial private sector assets. that euro would purchase a broad portfolio of simple and transparent asset-backed securities. >> the ecb is getting governments time to do what is needed. ticket freckle spoke with us at the forum in chernobyl. >> the structural issue that needs to be addressed. still, employment -- unemployed in europe is high come in some places very, very high. the reasons are structural. printing money will not solve that issue. competitiveness in some places have been eroded. print in -- printing money will

not solve that issue. in order to allow those companies and investors to carry out their plans, they do need the liquidity and that is where these he becomes an. i think -- comes in that's where the ecb comes in. andtandup comedian, writer tv personality joan rivers died at the age of 81. the new york state department of health is looking into her death. >> what was her jagged line? >> on your face. [laughter] >> it's hard not to laugh. >> she did it to herself. >> no holds were barred. to talk about her addiction to plastic surgery. she talked about her husband's

suicide. she wanted to cry and she wanted to laugh. >> earlier today, i spoke with the chairman of your beanie global economics nouriel roubini himself about the ecb injection. he said the decision is a move in the right direction. >> it doesn't really matter whether you buy private assets as the ecb has decided or public assets like sovereign bonds. effectively, they increase significantly the balance sheet to the target closer to three chilean. -- 3 trillion. it will have a significant impact over time together with other policies, like fiscal policy and structural reform. >> he also told us what his biggest worry is. >> the global economic recovery is still fragile. the usn u.k. are doing better. but -- the u.s. and u.k. are doing better.

but the recovery of japan's faltering. even the data coming from emerging markets and china are mixed. some of them are doing better. some of them are doing worse. i expect the chinese growth will slow down to 6% or below that. so we are in a global economic economy -- economic recovery. there are still clouds over the global economic outlook. crisis was his single biggest concern for the global economic recovery. where does geopolitics, where does russia and ukraine fit in your worry table right now? what are the implications? certainly, there are many geopolitical spots that are risky, from russia and you rain to what is happening in syria and iraq and the middle east.

take iraq, 90% of oil production is either in kurdistan or buzz wrong, under the control of shiites. so there has not been impact on the supply of oil. been a cut there has in supply to ukraine, but not to europe. factors are aal matter of potential risk. but for economic activity and for financial markets, as long as they are contained and as long as they don't have an impact on the direct supply of gas and oil, their impact probably will be limited. >> coming up come the dice and cheesy good creative -- chief executive unveils the robot you will welcome into your home.

>> welcome back. berlinnow going to to where hans nichols is going to be with dyson executive all about robot hands.

>> also about vacuum cleaners. thank you very much for joining us. you have a new robot vacuum cleaner. >> thank you for having me. this is the dice and 60 i robot vacuum cleaner. was to come up with a robot system that cleans efficiently and intelligently. this is german by our own dyson digital motor. a very small format can deliver more power. it has our cyclone. so our more powerful vacuum cleaner the world. we need to figure out how it can move intelligently. we put in a 360 degree visual system. thes a camera that scans room 30 pictures a second and then triangulates. the robot always knows where it is, where it needs to clean and you can actually find home. >> so it won't run away.

>> you can leave it to vacuum. it has a dyson app. when you're in the office, you can hit an office and a room will be clean. it lasts about 40 minutes. it knows when it is running low. it knows how long the needs to get to the base station. it goes back to the bay station and charges itself up. >> i have an average sized dining room. >> minus the big either. -- mine is not big either. >> there is a rug in the middle and a hardwood floor. how long does it take to clean around the chairs? >> probably in one charge, 30 to 40 minutes. when you talk about the rug, there is another feature. robot the problems with vacuum cleaners are wheels and they get stuck. when they transition from hard

for to carpet, they get stuck. with those tracks, it can climb up from a hard floor to a carpet. we made sure that the brush bar is the with of the whole machine. so where it goes, the hole with that it goes it actually cleans. it works as well on carpets as it does on hardwood floors. >> when can a go upstairs? what will it retail at? >> we are launching this next year in japan and then it will become available in the world in the middle of next year. retail depending on the country, about 800 to 900 euros. >> it is not a cheap device. >> no. intelligent technology is quite costly to make.

particularly the division system ended the tonics to make sure the machine -- the electronics -- particularly the division system and the electronics to make sure the machine does what it is supposed to do. >> i think i have your christmas present here. i don't think i can afford it. will it be too powerful? weakness,given the the softness of the euro today, i may be able to afford it. cut.ade the >> you are too generous. thank you very much. eu is contemplating saying that some vacuum cleaners are too powerful. >> which one have you got? eeli.have a m

>> they get a bit heavy. in provence of the weekend. to get ato a vineyard little bit of rose, a bit of cabernet sauvignon. and who owns the vineyard but none other than mr. dyson himself. >> was he there? >> no, but the woman who was with us could not really we did not know. his son is a guitarist. his wife is an artist. >> is there dyson on the label? chateau dyson? >> no. the part of low wind that he really likes is the vats. >> now we are pretty used to tech nowadays.

a smart phone or tablet or a flatscreen tv, but this dan doubt -- but to stand at, some electronics makers have two push the boat. >> samsung introduced a tv with a twist or more like a curve. while the rest of us have gotten used to a flatscreen, the idea behind this is that it offers optimum viewing. we have a color and contrast with the viewers eye is the same distance from every part of the screen. it is both a flatscreen and a curved screen. depending on how many people are watching it, you can basically optimize this to your viewing behavior. the shape ofnged the screen which flexes. it is the latest in ultra high definition tvs from the south korean firm which is still quite new.

it says they are selling well. >> only six months after uhdoduction, every second we are selling is a curved uhd tv. >> there is something about the bendable tv. it changes the usb of the curved tv. >> samsung is undoubtedly first with this idea. while impressive, it could be about showing off its huge levels of innovation in all its electronics. >> and see a baby tv? i like the idea. >> i was just thinking yesterday and quite -- at an angle. family, we will not be fighting for the best seat. i always win because i am the biggest. [laughter] >> cruel. >> difficult when two of them

are about this big. very strong kids. up, german industrial output forecast. is europe's largest economy headed for a rebound in the third quarter?

>> welcome back. by the man whod talks all things ecb, and the emergence of fed versus ecb, german out what -- german output. great interview with mary l rabin he. -- with nouriel roubini. essentially saying what they have done is a form of qe. it is a starting point and was they call in economics the multiplier effect. it will take time but it is a good start. >> you got to start somewhere. >> the big question for me is this. the quantitative easing in the united states, quantitative easing was to europe. light.goes to qe

where does money go from europe? >> ireland. we've got negative yields? >> eight bond markets? is that the correct price of markets? , thee currency yesterday kerry currency more so than the yen, i think it was 35 carry trade yesterday. all but one. so it seems to be on because it weekend and it seemingly could weaken further. >> what do the swiss have to do? >> the peg has been there for two or three years. >> and it has helped. russia-ukraine don't step forward -- that could begin into play.

he says it is the carry trade du jour. we will talk about that with mr. armstrong as well in terms of the assets. americanu look at the markets, they declined for the third day in a row, the longest losing streak since june of this year. european equities are set to open a little bit lower. there are no pleasing these markets. they are priced some very much into the market. >> the u.s. on a roll with nonfarm arrows, 230,000 jobs in august. what is driving the markets down? never-endinge punch bowl is coming to a clear and? end?clear >> they have had a good run.

futures are down, that's great -- let's not screen. they had a thumping run. take profit would be one of the analysis. we need to get used to something drawdown,oderate whatever cliched title you want to put on it. entered of 1%. >> with -- a third of 1%. >> we are not getting a decline in yields. the two-year note front, age european nations went negative yesterday. >> i am fascinated to know if anyone thinks that is the right way to price bond markets. german industrial production, this is a little bit of good news. 1.9%, well above estimates.

it is a strong start to the third quarter. a weather-induced a blip in the spring. it is good news. confidence indicators have cooled since july. ukraine.s in >> that is the number one worry. >> the bank of japan ready to act immediately. they are obviously concerned about the scare tax hike. >> calling for more fiscal measures to boost the economy. >> where have you heard that before? at jackson hole from mario draghi. the ceo of deutsche bank. >> structural measures take years to take effect, to actually read the the growth. to implemented

this qe, q you like, whichever you like. yearsuably, ecb is six behind the federal reserve in terms of quantitative easing. italy and france, the world economic forum is saying they need to take the structural reforms. istheir balance sheet hopefully going to be 2.7 trillion euro. the fed balance sheet is now $4.4 trillion. strip out what they were holding before they started qe. it's $3.5 trillion. 3.5 7nk of england spent billion pounds. the ecb is quite far behind. they hiked --e, under trichet, they hiked rates. >> jobs is the big number. >> 230,000.

>> the strongest year in 15 years if we stay above 200,000. >> "on the move is next. >> have a good weekend. we will see you monday.

>> welcome to "on the move." stocks are set for an interesting day. it is the morning after the day before the euphoria. here at bloomberg we are calling mario draghi's action qe-light. rate, thencing marginal lending rate and the deposit rate. german industrial production, not too bad. we caught up earlier with the voice of doom and gloom. he seemed quite impressed with the ecb. >> it doesn't really matter whether you buy private assets or public assets like sovereign

bonds. what they decide to do is increase significantly the balance sheet. that will have a significant impact over time, together with other policies like fiscal policy and structural reforms. >> stay with us. you can enjoy that full conversation later in the program. ryan chilcote is inside wales in berlin. was cooking today? two here at the nato summit. 60 world leaders discussing both ukraine and syria and iraq. two things to watch today. the eu poised to introduce new sanctions against russia. also, those peace talks in belarus, the ukrainian president says he may introduce a cease-fire today.