>> taking the lead as the pound slides. is set toopean union look at russian sanctions today. looking at the russian rebels. air-conditioner with five g, finishing in the billions of dollars. ♪

hello, and welcome to count down. >> a warm welcome to you. let's get to our top story. and this is less than two weeks. looking to break up the 370-year-old union. 307 -- six year union. the yes count put ahead. there is some evidence of momentum. are we looking at more evidence in the days to come. he did describe the swing we have been as remarkable.

>> they don't matter so much. >> we tend to think there are not enough of us. many who mights declare themselves. >> he thought about going for those with an inclination who are not persuadable. >> i really like what he has tuesday, which is this is where the fear factor or are will build. the people you are going to speak to in scotland, this fear factor in her of what could happen in the u.k. or the pound. look at the pound this morning. we are dropping. that is one real money comes in. we need to think about our wrist. it is much more material ball

than anybody would have thought. that fear factor or could swing. >> which is why over the weekend we still had the leader of the campaign declaring themselves >> a bombunderdog. was dropped on west and stir. he said, we will give you more controls over spending. is heading to that direction. he said, it is a bribe. it matters to ed miliband as much as cameron because he has more at stake. 100 politicians are running to scotland this week, death or it.

desperate. >> it is 10% of the economy. >> that depends what assumptions you make about oil. enormousn absolutely thing we are talking about. hisre on the ringside to three. -- of history. these --ervative in mps say they will call on david cameron perhaps to step the ride. first them saying the prime minister who was forced to step aside because he lost the american colonies. that is the long lens of his three people -- history people are applying. >> cameron said he was forced to deny if the vote went against him.

suits.e are great men in dollar sterling is on the move. headlines. of the pound in peril. traders are cutting their long position. long positions have dropped. what could be repercussions? citigroup says one dollar the six. -- $1.56. we have carney speaking. what will carney do? that is a big issue. >> before the scotland germany game they had a victory for a scottish sports team before the referendum that could boost

national pride, swaying voters to embrace the game. he said there was no bigger gauge of patriotism than a football team. he said if scotland be germany it could help the yes vote. what was the score? germany two, scotland one. >> he has got a fact of the day. >> general electric is delegate supplies business. the company making a bet on getting the prices. hans knows a thing or two. big deal? expensive? >> earnings for the appliance unit was about five with $7

if i am doing my math right, it is eight times. let's do the story. electrolux wants to get in more internet things. we talked about the chief invest in officer. -- investment officer. they talked about entertaining your. they are becoming more consolidated. this is a company that is being be anocused. they want to industrial company. by 2016 they want 75% of their revenues come from their industrial arm. this is a company that wants to do big industrial electrification processes but puts them in a collision course with lehman.

they are getting rid of their assets. in some ways i feel like i because iconflicted have so many strong opinions. suffice it to say they are going to keep the ge brand. if you like the ge brand, the brand name will stay. i will not give you any thoughts on a dishwasher my family may have had in 1988. you may have to disclose those interests. i have an interest in all things kitchen appliance. everybody in the newsroom knows i have a real disclosure interest. >> ipng said they made them first commercially viable made them ge commercially viable. >> he likes toasters. up, last thursday's

message to banks was loud and clear. cons of the pros and australia bankhead of credit strategy next. ♪

>> welcome back. ryanair will place an $11 billion order for boeing jets. ryanair pushed for a new version of the plane that had more seats. owing says they plan to make a significant announcement. stay with us. we will be talking to the ryanair chief executive officer around 4 p.m. london time. a changerchionne says for the chairman is not on the table. after ress reports he would be leaving for ari. he also said earlier that for ari needed to produce more formula one. >> let's just relax.

it applies to every executive. is one time the house has to assert that the house wins. >> at general motors they will introduce a cadillac that can be driven hands-free. superdel will feature technology that will take control of accelerating and braking. at the same time they will be producing technology that enables cars to communicate with other cars to improve road safety. week's ecb announcement mario draghi was clear rates for the lowest it would go. the potential swing of voting in scotland changing with the yes campaign to

independence just ahead. let's talk about what this might mean with the head of credit strategy. very welcome. finally do have a credit man in. mean if we had woken up on the 19th from a credit point of view from the united kingdom with a yes vote? >> it is such uncharted territory no one knows what it you have seene. the initial reaction in sterling. that gives you an indication there is a level of uncertainty and desire for it not to go that way. would suggest we trade wider. there would be risk aversion as to the short-term view of what is going to happen. >> would it take time to begin to understand the english

credit? >> absolutely. are not going to come to the 19th, vote yes, and that is it. you have 18 months of a process with which to go through that process, the separation. be drawn out, and we would have to work through the it wouldcons of what be. as the politicians point out, once you vote, that is the way it is going to be. earlier aboutking how it works around foreign exchange. a creditgh perspective. he was saying it's not the case that you wake up and if it is a yes vote 10% says it is leaving. it is not a simple balance sheet exercise. it is really about the

-- distraction. >> it is about this uncertainty and nervousness. saidatings agencies scotland would not have a aaa rating. that would assume yields north of the border would be higher than those south of the border. i am sure it would go up, but you are going to start to see a divergence between the two. that means capital. if you have got mr. druggie saying we are going to continue on bond buying programs yields are going to remain low for the foreseeable future, the u.k. is not going to be raising rates for the early part of this year. perhaps your ie -- your high scottishto be buying corporate risk. >> what does it mean for the

bank of england? the economy hates uncertainty. it push back interest rate hikes? >> it could well be. does.s it it will push back expectations of the bank of england or even further into 2015. let at taking money out of guilds and putting it into treasuries and this intervening risk? .ow do you hedge it is gaining momentum. in a row. isn't that what they said? >> it's one poll. you perhaps get some safe haven

trades. bonds don't look like they offer a huge amount of value. i don't think you will get an exit is out of sterling product. at the edges of the margin people are reallocating. >> you said your clients were happy to hold cash. with theas more to do level of valuations generally. this came as a five-year split. that is reflective of how far we have come. 25%. --led or 20 or high yields are 20 or 25%. people are becoming more discerning. they are not uncomfortable with the risk. >> where is the value? , givenrors will things

what druggie did last week there there issure trade. the financial capital structure and compression over the next few weeks and months. australian corporate credit from a fundamental first active looks attract. we still see a very significant and consistent appetite for sure versusustralian banks the more high-yielding. i would be selling year high yield. i would just be selling the yields rather than the companies self.ls. -- company and >> our geopolitics having an -- >> bad news.

the uncertainty is leading to this desire rather than chasing risk indiscriminately. like the phrase. >> investors for the first time are saying, i am not going to buy that. wait. why do i want to worry about a particular interest when it is split? i would rather hold the cash and wait and see what better value comes. if spreads go wider there will be more attractive opportunities. >> thank you very much. >> global demand decreased for chinese product. we are alive next. -- are alive next.

>> welcome back. the world once in august,e product but that remains elusive. said has details. has details. >> china should say thank you to others around the world who have

been buying chinese exports at a faster pace than expected. chinese export numbers showing stronger growth than estimated. we are talking 9.4% growth in exports. that was not and expected. we saw a drop in the in port number. demand is not keeping pace with what the government would like to see. that goes back to the issue of rebalancing, moving from an export-based economy to one that is domestically driven. it is a big contributor to imports. sharesseeing eight advancing -- eight shares advancing.- h-shares no indication in terms of how investors are reacting.

we need to watch closely this diversion for between exports and imports in china. -- deficit ofis $50 billion. talk to me about japan. you have got gdp numbers contracting more than the market. what does this do for the potential for further tax hikes next year? >> it is something we need to watch closely. the eighthes administration -- abe administration is looking at would be significant. there has been an impact on the economy. through june.7.1% that is the first since the first quarter of 2009. raisey question, can they

taxes later next year at the level that could put the japanese economy in recession? one of the key challenges, wages in japan. not keeping pace, and it is more expensive to live. the government has got a big challenge on their hands. >> things for that roundup. move over.p, there could be a recordholder in town. alibaba's ipo is set to be the biggest in history. we will have more, next.

>> time to see what foreign exchange dealers are making. the independence poll puts it ahead for the first time. it is having an impact on dollar sterling. we are down 9/10 of 1%. pound in peril. the referendum is on the knife age. what would it mean if the independence actually one?

you would be looking at $1.56. that would be their view. polls, andbeen 86 only to have put the yes vote in the league. mark carney talks be onwhat the impact will the bank of england. euro-dollar down and eight. traders are the most short since 2012. probabilityf the -- you are going to be at one .2784. the mostency is oversold since 2000 and eight. -- 2000 eight. gdp contracts by 7.1%.

in terms ofext stimulus? we wait to see. these are the top headlines. president obama says he can rally sunni arab states to help defeat militants. .e plans to lay out the plans this calls on nations to step up and play roles. the timetable for the delegation uspower as osborne tells that tells bbc the plan of action will be revealed in coming days. >> you will see a plan of action to give more powers to scotland, more spending powers, more plans . that will be put into effect. the timetable will be put in effect the moment there is a no vote in the referendum.

a clock will be taking. oftland will have the best both worlds. they will have more control of their own destiny, which is where i think they need to be. >> banks of the european union face a coordinated policy response from regulators. this comes after lenders have turned to so-called allowances to get around a ban on bonuses. barclays and lloyds are among the banks named. the cease-fire is being tested by both sides. pro-russian rebels report violations and casualties. . despite the reports the cease-fire seems to be holding. >> the ukrainian defense minister has said the rebels fiveviolated the truce times since yesterday. we have seen that across the board. on the waree fronts

in eastern ukraine. we saw fighting over the weekend in most of them. mostly shelling it. mostly minor compared to a week ago. the russian president spoke on saturday. i think that demonstrates their intention to stick to this cease-fire and make sure it sticks. if either of them was looking for an excuse to get out of the that, they certainly got this weekend. one of the things they will find more difficult is agreeing on political components of the deal. hasdent poroshenko's plan 12 points. the most important one is decentralization of power, giving eastern ukraine of greater autonomy. will it be enough to keep separatist happy in the kremlin as well? >> we have heard from europe further sanctions are on the

table. they are being voted on today. >> we expect those sanctions to be approved today, published tomorrow. they were supposed to be approved over the weekend. that didn't happen. pronet list would be gas -- gasp from -- gasprom. the trigger, everyone sort of the sanctionsthat should go forward regardless of the truce. the trigger for neutralizing ,anctions, for suspending them would be russia with drawing its forces, which it said it doesn't have. nato says the russians have well over 1000 troops. that is the bar the european

union and nato say the russians have to meet. they have to pull those troops out if they want to see a neutralization, a suspension of those sanctions or a reversal. >> what about russia? this prettye we saw germ at it moves. where would russia go next? >> we saw the food import ban. then the russians telegraph they could ban european airlines from their airspace. in a newspaper interview they said the threat is still on the table. he said, western airlines if they are forced to fly outside of russian airspace would face bankruptcy. they are teetering on the edge of bankruptcy. i just hope the eu understands

this. he is repeating the threat. >> thank you very much. >> the chinese internet giant alibaba could soon make ipo history. with a little more on the biggest share sale, caroline hyde. >> the valuation is close to $163 billion. very similar business models. this is basically a market base. they bring together buyers and sellers. commission.take a also advertising. it has a number of websites it controls. they have a virtual mall. this is the dominant force in china. the biggest chinese company in terms of the internet.

it's valuation is certainly bigger than amazon and ebay. is the biggest in history, certainly the biggest in the united states. well above visa. perspective, alibaba will have a market 95% ofration bigger than the s&p 500. this is a bet on chinese growth. the 632a bet that million people who have access to the internet in china could grow by 30% in 2015. it is a proxy. alibaba is a proxy for growth in china. it already ships half of all packages. they not listing in hong kong or singapore even? why new york? but they turned down hong kong. they don't like the fact that 27

individuals will have control of membership. they can drive through m&a without getting to say yes. >> shareholders don't get the same voting rights they would in other businesses. >> the board of google have significant power over the company to make decisions. is -- tiering is far more acceptable. when you buy into facebook you buy into the vision of mark zuckerberg. buying into perhaps the peculiar him in a going on. m&a going on. this is one way find out how much the company could be worth. they say they are going to lift the receipts. he said, my most important thing

is my customer. my second most important is my employee. >> like mark zuckerberg he has been moving into areas that might surprise some. >> when does food production or taxi services ring bells for when you want to try to sell shampoo powder. all of these chinese goods are not cheaper. why don't they move into film production? they are going to sit down with attentional investors. it kicks off in new york. 500 attendees are coming to london on september 17. many investors are going to want to know why this is. making on average two deals per month. they have led and invested -- investment of a quarter of a million.

i can understand that is wooing mobile users to get on their website. lyft, which is the ridesharing app? get rerouted by the alibaba web i. we have to question. >> he remember when we had to talk about a lot of nothing. there was western about his viability as a eeo. >> a moment he is still control. he is one of the wealthiest people in the world. i think people wouldn't mind tapping into that. >> a give up control. coming up, more people are turning to mobile.

we will find out more with our next guest. coming up. >> welcome back.

7:40 four in london.

the world isn't getting smaller, but it feels like it is. the number of mobile devices will exceed the population this year. how do we keep our information safe? gary joins us. thank you for coming into cs. very topical. -- for coming to see us. we have been tackling the banking sector. what is the number one focus for you and your clients? is it keeping the banking safe? what is the focus at the moment? >> securities. we used to think it was malware. now it is photos. the truth is it is everything. it is very complicated for the consumers. most do not do anything. benefited from the ?hares

>> we all benefit. nervous and it's harder to solve. >> i just looked at some of our intelligence data, and corporate bening is going to rise 42%. we are adding to this all the time. where is the responsibility? is it my responsibility to make sure it is protect did? will i be spending more money, uses it the apple product i ? what is that balance for? i amt to make sure protecting my own privacy. >> it is both. we don't use strong passwords. also the security of the online services, but the entire thing

needs to get a lot simpler. we have let consumers down. ofwill consumers pay a lot money for this? will i be prepared to pay more if i get hacked? what does it take to spend money with you? >> what does it take for you to get breached? werewe had desktop and we breached, people panic. of opportunity for the bad guys. >> who backs the bad guys? ashave been hearing reports to whether hacking evidence have been backed around the world. ?s it bad business who is putting the money into this? is all of the above. .eople hack and sell it

lots of companies by the holes in their system because it is less expensive and more timely than actually fixing it themselves. the highest bidder could be good. it could be bad. >> can the industry stay ahead? it will always be that way? >> it is like any security. we think we have a good handle and someone finds an entry point. >> i am always amazed. they talk about flaws -- known flaws. why are they still there? >> have mutations. somebody makes a slightly different entry point, and away we go. tell me this. it is a crowded space. there is lots of personal security. why yields?

>> there are a lot of people trying to solve, whether it is malware. it is all complicated. we are trying to make it simple so you have one thing to download. it keeps you safe. your family. how do you track your children? where can your children go? who can reach them? this is all part of what we acquired. >> you harness the power of online communities. how do you do that? >> we have lots of things we .ncorporate real-time >> are we frightened enough? >> we are not frightened enough. we talk in the humorous sense. we post nude photos, and everyone thinks that is somebody else's problem.

cloud it ist in the your problem. people are not concerned with nude photos of me. >> someone might be trying to get a hold of those. >> i had better watch it. >> inc. you. -- thank you. coming up the referendum risk will surge in support of scottish independence. how is it going to play out? from a weeksback vacation. he will put it into context.

>> welcome back. i want to check on townsville a he. this chart shows one month implied volatility of sterling versus the dollar. one month implied volatility is a measure of future price used to determine the cost. sunday the gap between the yes vote and the no vote narrowed. yes vote hasly the gone ahead in the polls. last week one month volatility rose by 49%.

that is the biggest increase in five days since 2000 and eight. the rise continues today. volatility is up 29%. that's the biggest one-day move since november of 1999. that's a big move. oft's the highest since july 2013. this is going back to 1996. there nowhere near financial crisis of 2000 and eight. been no movement in volatility for months, and suddenly over last sunday's poll the biggest increase since 2000 and eight. people are scared by this poll. how scared are the markets? >> i think there is a lot of uncertainty. if scotland votes yes, what

40 seats.th about you strip out those votes. let's say they vote, but they vote yes to exit, and labor get a very small majority. we have to strip out those labor seats. they haven't got those rules yet. >> they have to have a lot of rules about everything. thingill give you one that decides where they go. it is sterling. money is back in town. >> it was sterling euro we should be looking at. a better gauge. it hasn't budged at all. watching banking stocks. >> that will be interesting.

>> thank you. we will be back in just a few minutes time. we will talk about currencies. scotland will be one of the topics of conversation.

>> welcome to "on the move." moving. is who would have thought it? sterling lower. we are going to discuss this with hans nichols and caroline hyde. it is the top story. >> the weekend poll for the first time this year. the pound has already lost against the dollar since the beginning of july. will what happens in the markets

this weekend or early next influence the voting? will have to wait and see. >> we will be talking washington mission -- washing machines. -- buyve agreed to by g ge. right now the stock is being called up for electrolux. we will see. >> $24 billion. that is how much alibaba could raise in the first ever biggest share sale. would it be a record breaker. it would be bigger than amazon. 95% of s&p 500. why the valuation? why potential investors need to

realize they are not first. they are not second. they are third. >> we will talk about alibaba in 20 minutes time. sterling lower. ftse futures also lower. it is all about scotland. scotland is driving trade in the city of london. >> i love some of the headlines. the pound in peril. the fx market has on the knife edge. you are going to see more and euros sterling rather than dollar sterling. it could move lower on the back of a referendum. citigroup says you could knock at one dollar 56. that of most unlikely to really support cable or euros sterling. carney, what he might be

mulling over in terms of the risk of what he has to support or not in terms of institutions north of the border. european markets are lower. an uneasy truce it seems. japan gdp tracking more than the market estimated. ukraine an uneasy truce. done.als getting is it a high price? i read that that deal was priced billion. around 2.2 very different perspective.

90% of the revenue comes from ge appliances. the stock of over 6%. ryanair said to announce their deal form -- for boeing jets. squeeze them in like sardines. for is what it is all about ryanair. id does is trailing -- adidas is trailing in the united states. let's have a quick look at u.s. futures. equity markets taking a pause at the moment. down and eight. >> thank you very much. you might be irish. i just don't see you flying ryanair. the chief executive of goldman billionlps oversee $935

in assets. thanks for coming to the show. let's start with friday. i would say it is a big mess. not too cold. not too hot. the fed might not raise rates a cousin of it. in your mind does that goldilocks growth speak to growth more jim -- more generally? >> it missed the numbers economists were hoping for. that being said, the three trend is giving confidence. we see them try to go through the numbers. we didn't see the decline you usually have in july. we see pretty confident people in the u.s. story and growth. not seeing a completely goldilocks story. >> where do i position myself as an investor?

is it equity? >> we have seen an increase in equity. one thing that has been aroundly interesting europe, the middle east, and asia, has been their interest in small caps. there has been quite a bit of focus on building from the but certainly we are a long way from client eating fully invested in equities. there is a long way to go. >> when i look at irish bond yields and i see the negative you spend a lot of time in the u.s. recently. are they looking into it because they can't see the pickup? >> we're definitely seeing that and not just in the u.s.. i think globally clients are challenged with the yield environment. fixed unconstrained income as opposed to high yields or bank loans, to try to give portfolio managers the

opportunity. inhave seen a pickup interest in alternatives. we have had clients looking at global macro, equity strategy is, looking to find a return. >> do you think it is a consequence that they cannot get a return elsewhere, or is it a product of increased confidence? >> it is a product of increased confidence. it has taken a while. in general i wouldn't call it misplaced. it is a slow and thoughtful process for clients. i think a big difference you see is the amount of due diligence. we will no decision invest in something and move ahead. there is quite a lot of work. >> compare that to 2007. changed? aaa, has it >> it has changed. there is a focus on quality and

fundamentals before investing. everybody learn many things during the crisis. for the clients we talked to they have learned to look a .ittle different >> very quickly. when you don't see a triple digit people are still buying junk debt. junk bond yields have been going lower. do you think people are being complacent and certain spaces in the fixed income market? >> i think what you're seeing is a certain amount of clients constrained no matter what they think. we have talked about the situation and european sovereigns and why do we see yields go negative. areave to remember there money market funds with constraints on pensions. it is not as simple as allocating a way. i think that is a big issue for investors. i think it takes time as people

realize the yields are not going to change. >> we will talk about that against asia. stay with us. on the move is back in two minutes. a lower start this morning. ♪

>> welcome back. we stream on everything. insightth me for more

is the chief executive of goldman sachs asset management international. always a pleasure. maybe you can help me with this. the irish two-year is now a negative. ? have to pay to lend money we talked about the institutions constrained by were they can invest. say,u look into this and this is ridiculous? what is your view? >> fixed income is europe -- in europe is painful. some clients have no choice. they have to reinvest in european sovereigns. your governments and regulators are telling you you have to. if you don't have to, where do you go? i have seen the interest in emerging markets. that is definitely the result of what you're seeing in fixed income. you have seen interest in

corporate in asia growing dramatically. for yield. look they will move away from places where they don't find value. it's pretty tough to find value in europe. sustainable do you think the move is? >> i think it is one that has a lot of people doing work on how viable it is to get to a certain capacity. from the sovereign space people -- quite a bit of confidence. ofyou look at the economies emerging markets he might feel better about them than in the developed world. it is the depth and the size versus the amount of money that you have in focus. that is why you have seen a focus on broadening markets in asia and elsewhere. >> if i go into that space do i as well on exposure top of that?

>> in many cases clients want fx exposure. i think when you look at the type of growth we are seeing , they other questions want the exposure. it really depends on investors goals. asia, wee talk about are really talking about china. asia might of dispute that. >> it is all everybody thinks to look at when we look at asia. when we look at the data, when the pmi's are good, we are thinking, are they really good? bad, you must be thinking they are really bad. what is the view? >> i think the view has changed substantially on china in the last year. there was a lot of concern as to whether the governor had the -- government had the polls of what

was going on. whether the pace of reform would continue. fast-forward to do it -- to today, on the ground the feeling actionsmore confident are taken to sustain growth to deal with things that could and start tobbles develop a sustainable economy the rest of the world needs. companyven't seen any without the back of it. is it realistic to bring it to a soft landing? are we being too optimistic? think in every emerging market it is too optimistic to think you will get a sustained upward trajectory without bumps in the road. china andg now in what we're seeing with suggest

there would be some bumps, but they are survivable and manageable with a careful focus on selecting the right investments and watching the regulatory seen. fixed income is a place where five years from now there will be interesting opportunities with investors have them or significant allocations. that work is just starting. >> i love the analogy. thank you very much for joining us this morning. minister andnce top chief executives are gathered at the stock exchange because they have a new building. elliott, over to you. to grab one ofed the chief executives from the party. israel's ceo of one of biggest energy explorers.

great to have you. just last week you and your partners find a $15 billion deal the biggests from field here. how important is the development of that gas field? >> i think it can be very important. they not enough quantity are going to buy. i think it is very important not only from the economic view. i think it is important for the region and the people of this area. >> this is the first of many more deals in the pipeline perhaps? >> we hope so. develop as soon as possible. to continue with the development in the field. >> they have a nonbinding agreement.

are they on track to be finalized by the end of this year? >> i don't know. they are thinking of it. asturkey was being talked of a potential export outlook. describingwere israel as being worse than hitler, is turkey a nonstarter? >> i don't want to be involved in politics. we are businessmen. we will try to sell. >> europe is trying to become less reliant on russian gas. to you get more knocks on the door these days? the biggest field we

discovered last year. >> what side of australia was due to make and invest and, but the deal didn't work out in the end. are you and your main partner looking for replacement strategic partners to invest? >> no. is in thee what future. >> you are planning to list your shares in london as well. of next year.il what is the reason? >> we would like to focus on oil business. we believe the london exchange is very important for this growth we would like to achieve. as you mentioned, in 2015 we will try to be listed in

london. >> we're at this magnificent new building. should the stock exchange be concerned that the large companies such as yourself are shifting overseas? >> i don't think so. we will be in tel aviv and london. >> ok. take you so much for joining us. congratulations on being part of this. john, i will handed back to you in london. >> thank you very much. great work. we have been looking at markets lower across the board. pound is diving also. it's not just about scotland. the u.s. store. we will tell you everything you need to know about the chinese company gearing up to make ipo history. stay with us. ♪

>> welcome back. let's turn to ukraine, where the cease-fire is being test did as ukraine's government and pro-russian rebels report truce violations and casualties as well. ryan joins us with the latest. bothave a cease-fire, but sides are still fighting. >> the ukrainian defense says the pro-russian rebels violated

the cease-fire agreement five times since yesterday. that is a de-escalation of the conflict. i am sure we will see the russian rebels say the ukrainian government has violated the cease-fire as well. we have seen this new front. having said that, the ukrainian president and president putin spoke on saturday. i think that is an indication of goodwill. these guys both want this deal to stick. if they wanted a reason to get out of the cease-fire, both of them have that. having said that, if you look at it poroshenko's peace plan includes 12 points including decentralizing power, giving eastern ukraine more autonomy. will he be prepared to give eastern ukraine as much autonomy as the russian president wants him to give? that is what we don't know.

headline markets jumped. really it is because investors are thinking, we might not get more sanctions. we have got a cease-fire. they are talking about more sanctions. you were in wales. what is the sentiment there? >> the expectation is more sanctions. we are expecting them from the european union. they were expecting them by friday. the expectation is agreed today, published tomorrow. has all street journal story listing the companies that could be targeted. the same restrictions to european capital markets we have seen before. prom.ime it would be gas \, which is a pipeline controller. what i think the big thing here ?s will these go forward

exactly how, and what the will be.from russia we cannot be sure they will happen today. we were expecting them by friday. that was what the eu said they would stick to, and they didn't happen. the feeling from the nato summit was the sanctions need to go forward because of what the russian president has already done because they are what has back,\edussia separatists back to the table. they can always be reversed. the trigger for stopping sanctions is not really the cease-fire. the new trigger is russia has to pull its troops out of eastern ukraine despite the fact russia says it does not have troops in ukraine. >> when you look at the

approval, how much appetite the european leaders have when putin is at an all-time high? counter sanctions perhaps could have more teeth. >> we heard this telegraph when the russians introduced the ban on food imports. they also said, what might be next is banning european airlines from russian airspace. in an interview with the russian newspaper, the russian prime minister repeated the threat. he said, if we ban these western airlines from flying in our airspace, it could bankrupt them. they are already teetering on the edge of bankruptcy. this could be what pushes them over. i hope the eu realizes that. >> political risk is a big thing, not just for russia and ukraine, but also the u.k. scotland is on the brink of exiting the u.k. markets are looking a lot at this. three financials with big

exposure to the country all down. the pound getting crushed as well. we talked to a man in the know about what happened next. stay with us. ♪

>> this is what equity markets look like. we have a lower open. the stoxx 600 down by about 0.5%. the big focus, zero .06%. we are not talking about geopolitical risk in russia or ukraine. we are talking about scotland and whether they could leave the united kingdom. what does it mean for markets? ryan chilcote at the touchscreen

has to tax to look at. >> electrolux. then of course we have yep stocks -- two stocks going down. rbs, the royal bank of scotland, down on the concern, the uncertainty caused by that poll over the weekend suggesting that scottish voters might say yes to independence from the united kingdom. owns scottish's widows. back to you, john. >> thank you very much, ryan chilcote. china trade surplus climbed to a record in august. while imports fell for a second month in a row, the decline in imports was unexpected and may show that china's economic growth target of 7.5% could be at risk.

japan's economy contracted the most in more than five years last quarter. gdp shrank 7.1% as the blow from an april sales tax hike was worse than expected. the government is prepared to boost stimulus. chancellor george osborne has promised a timetable for further delegation of power if voters in scotland reject independence. plan of action a will be detailed in the upcoming days. see in the next few days, a plan of action to give more powers to scotland. more tax powers, more spending powers, and that will be put into effect, the timetable will be put into effect the moment there is a no vote in the referendum. the clock will be taking for delivering those powers and

scotland will have the best of both worlds. they will avoid the risk of separation but have more control over their own destiny. >> a plan of action. does he sound a little bit nervous? the scottish nationalists have taken a lead in one of the polls. joining us now to discuss what this means for markets is simon derek, chief currency strategist at bank of new york. you heard him talking about a plan of action. maybe a little bit too late? >> i think you are certainly right. there was a sense that even though it was going to be tight, most of the polls were suggesting that this was going to be a victory for the better together compact. oft you have got a sense over the last 24 hours is the better together campaign is suddenly scrambling. -- freshhe fact concessions toward scotland,

that doesn't go over terribly well. >> we could be on the verge of a messy divorce. the argument with the lawyers won't be about assets. it is going to be about the debt. have you got any color on that? >> this is one of the great unknowns. there has been the central debate with regards to the bank of england and who actually is responsible for the national debt. , thendon't have access why should we be responsible for our share of the national debt? what we do know is the u.k. treasury has said that it is responsible for all debts at the moment. we also had a report rum fitch that suggested were that to be the case, you would be talking about a one-off hit around 8.9% of gdp. it is manageable but it has a huge drag on the issue of u.k.

sovereign debt. that is going to be a lot further down the line. >> how do they issue debt? they can keep sterling but if you haven't got the support of a central bank, we saw what happened around one 812 when you didn't have a fully functioning central bank in the eurozone. >> i think it would be very difficult for them. there is a whole host of issues that come with not having a central bank of your own. you don't have a lender of last resort. you can see it already in the markets this morning with what is happening to rbs and lloyds. there is this -- who actually supports them? going back to the ratings agencies, standard & poor's put out a report around april that said if you look at scottish banking assets compared to gdp, significantly worse.

there are these big concerns. likely, rbs and lloyds in the u.k. it is that uncertainty that is catching people unawares. >> you are a currency man. i am looking at sterling. we have come down from near 1.70. that is not just about the scotland issue. how on earth do you trade this ahead of that referendum? >> you trade it on the very simple fact that people haven't been focusing on the referendum. wasjust in the way sterling recently up, you can see it in the price of risk. it was implied until recently that the next five months would be the quietest on record. haven't had their eyes on the ball. if you look at positioning data, it suggests that people haven't

been focused. they aren't positioned for the risk that could come along. for me, trading this is very straightforward. you have to reduce your sterling risk. given the fact that we know that september has directly has been a bad month for -- historically has been a bad month for , and sterling can move further than people give it 15%it for, you get news of or 20% quite often over the pace of six or nine months. short sterling is the way to be. >> the poll tells me one thing. when i look at the bookies, the bookies tell me the polar opposite. what is the disconnect? >> this is probably where we are going to spend the next 10 days. that is where we are going to get the day for day detail. i think what you have is, you have to remember there is a margin of error in all these polls. for me, it is not necessarily

the fact that the yes campaign is in the lead. it is the narrowing of the change. huge -- in favor of the independence campaign. that is the key issue. can that momentum continue? if it does, it will start showing up in the numbers pretty quickly. >> thank you very much. in a word, momentum. let's broaden the conversation to the eurozone. after last week's surprise decision from the ecb, wasn't a surprise to some people, but for most, what does it mean? bloomberg caught up with a former ecb president in chernobyl. -- in cernobbio. cannot alone solve the problem. it is clear. you have the government and the

private sector and the main that all central banks have to these partners is that you have to do the job yourself. put your house in order. they are not in order. , both ate in europe national level and also at the level of europe as a whole. that thederstanding is market does not see exactly what is the situation of the ecb vis-à-vis this issue. liquidityspeaking of and liquidity supply, which is one of course of the major aims an issuanceve policy. all insurance banks can have all the liquidity they want without

limit. the only limit being their own collateral. they could ask one trillion euros more, 3 trillion euros more, and here comes the collateral. the euro.e system in it does not exist in the u.s. one has to remember that. up, a deal with ge. details on the biggest by ever, next. ♪

>> welcome back. general electric is selling their appliance business to sweden's electrolux for $3.3 billion in cash. betcompany is making a big on the connected home and appliances. international correspondent hans nichols has the story. >> this is a big bet on the connected home. it is also a move by general electric to move away from home appliances. ways, home companies have agreed to this move. it is about both companies becoming tremor and more focused. electrolux thinks there are the revenues there and they want to have the focus on the connected home. with the, we spoke

chief technology officer of the electrolux. they have a vision of how your home will be connected. which internet of things also comes into the kitchen and the steam oven, it will help you get the recipe right. thethen, to maybe go out of kitchen, into the living room, to socialize with your friends and watch through a camera what is happening in your oven and have that peace of mind and control that you want to have while you are cooking. >> in some ways, this is about scale. electrolux will be able to put more into r&d. this is a $3.3 billion deal. when you look at what ge gets out of this, they get to be more streamlined. they get to focus a little more. they bought energy assets from alstom in france. here is how the general electric ceo put it. this transaction is consistent with our strategy to be the world's best infrastructure and

technology company. they are more focused. electrolux is more focused. you can be more focused in your kitchen and the power may be brought to you by general electric. >> i will maintain that focus in the kitchen. thank you very much. chinese internet giant alibaba could soon make ipo history, raising more than $24 billion by selling shares. here with more on what could be the world's biggest hair shale -- share sale is caroline hyde. >> $24 billion is the top of mount they manage to execute in terms of the $66 top range of shares. but also an overallotment option. this would be the biggest share sale in the world. these are raised about $20 billion. the valuation of this internet

juggernaut would be $163 billion. that doesn't make it as valuable as facebook or google but it does make it more valuable than amazon, ebay. it makes it more valuable than 95% of the s&p 500. what are we betting on here? we are betting on the chinese growing in terms of internet use, growing in terms of e-commerce, but also, alibaba getting outside of china, thating these 50 million are of chinese origin but no longer live within their country. ist 50 million people, that more than the population of argentina. clearly this is an area of growth. this is the dominant force in chinese e-commerce. million chinese internet users at the moment. that could increase by 34%. the sheer scale is amazing.

it currently is the number one internet company in china. about 279 million users. its business model brings together buyers and sellers. you can go on to websites which are virtual malls. you can go onto flash sales. they make money by advertising. they also make it by taking a little cut of each sale. express, really going so strongly. in russia, portuguese speaking countries and english-speaking countries. this is a company to keep an eye out for. .t all kicks off they are coming over to london as well. investors want to see the vision for this company. >> let's stay on this story and the founder of restoration partners. thanks for joining us to this

morning. what is this a bet on? am i betting on china and getting exposure to the internet team, or am i betting on alibaba? >> from a share price perspective, you are betting on a global play. the internet has been dominated by u.s. companies. build theople can bottom of the stack, the infrastructure. we never hear about them. is alwaysment facebook and google and so on. we haven't seen many non-american companies in the scale up there. alibaba is the first. this is a bet on the global internet. >> when i look at alibaba, it really takes the headlines. $5 billion in a day on transactions. but that is not revenue. the real headline for me is the margin. over 40 pence on every dollar of

revenue. that is pretty significant. >> their challenge will be, how do they maintain? you can make much of that up with volume. here is a seismic announcement really. $20 billion or more in the bank to do all sorts of things globally. ebay looks vulnerable. paypal looks vulnerable. amazon look potentially vulnerable. it is a real game changer. >> we talk about risk. this is a company that has spent over $4 billion on acquisitions. that includes a soccer team. does that concern you? if i was looking at those numbers, that would concern me. >> if there is an issue about this kind of company, it is a governance issue. ironic that a company that wanted to float in hong kong would go to new york instead of hong kong because of the governance regulations in hong kong as opposed to america where they are much more lax.

this idea that businesses can be controlled by their founders, they have a minority of shares is an interesting one. america will say, we are the biggest economy in the western world. are going 27 people to decide the future of this business. the optimist would say, that is better than one person. look at what happened to facebook or steve jobs in apple. the governance is probably the most interesting as opposed to the technology. >> beyond that, we talk about risk and parallels between alibaba and kink. in your mind, is that a concern? really interesting example, chaired by a friend of mine. >> full disclaimer. >> there is an issue there.

king is not an american company. it doesn't therefore get the naked support it would have got as an american business. alibaba is going to get that in spades because they are chinese. the way way way was treated -- huawei was treated many years. when lenovo bought the ibm pc business, it all came flooding out again. think what king teaches us is it is quite difficult for a non-american company to thrive with a jungle drum beat in america. or anynd up with alibaba of the other big players, all sorts of amazing things could relaxedn a pretty market distribution. >> thank you very much. on the move is back in two minutes. we will get a check on the

market as we had to "the pulse." that is intent minutes time. ♪

>> welcome back to "on the move ." i am jonathan ferro. we are going to talk about cars. some say the days of british motor engineering are long gone. has brought back to life a motor company that stopped producing cars during the second world war. biggest challenge

we face going forward is communicating our story. it is not a new name. it is a car with good heritage. for me it goes back some years. my first. 17, i saw it was established in 1926. it was the technically most advanced british sports car. by 39 -- [indiscernible] in 2006, 2007, i recognized , inquired about

trademarks, picked up the name. i had a car that i could reverse engineer. currently the cars start at 125,000 pounds. estimate about 21 cars. i think we can supersede that. >> that is it for "on the move." ftse 100 down by 0.4%. scotland fullerton with independence. just 10 days away from the referendum. to pound has gone from 1.72 1.69. if you want to talk markets, you know where i am. ♪

>> the pound is under pressure after a poll puts the vote for scottish independence in front for the first time this year. buying ge's home appliance unit for more than $3 billion. that is its biggest purchase ever. annair is set to announce $11 billion order of boeing jets. we are going to talk to the ceo, michael o'leary.