>> the wait is over. apple unveils a new iphone and payment system. >> that is the message from u.k. prime minister david cameron as he heads the scotland. the bank of england governor warns of a turrentine union would not be -- a current see union would not be popular -- a currency union monopoly popular -- would not be popular. welcome to countdown. a very warm welcome to the show.

it is 6:00 in london. a very good morning to you. new products have arrived packed with 2000 silicon valley executives and celebrities. the company unveiled its next-generation. >> of these of the new iphones -- the iphone 6 and the iphone 6 plus. they are without a doubt the best iphones we have ever done. i hope you will agree they are the best phones you have ever seen. biggest announced the screen iphones. caroline hyde is here. it is a key day for apple. did he deliver? >> the next chapter in the apple story is what he said. he is brought an entirely different product to the market. a new ecosystem.

it has been reiterations of what steve jobs has done but now, at last, we have seen changes. a new category -- a new apple watch. a payment system. this is a company that is not trying to vindicate that it is worth more than half $1 billion, more than the gdp of sweden, thailand. it seems to be impressing. the stock is not a little bit because we knew about the products that they were going to announce. the watch. this is the real new product unveiling. why did they go apple? they say creates the best watch in the world. the amount you can personalize it. you can get two types of faces. you can get classic or gold.

that is coming in at $349. 18 karat rose in or caret gold. they made a still stronger than any other phone. it has interesting features like voice command, the siri voice command. fitness but it takes fitness on a different level because you can have diagnostics. they can give you coaching features. that will be taken on a different level. you can send messages. you can tap on a friend's face and send them a pulsing sensation if they have another one. >> look at the reviews that came through. the list rations were very beautiful -- of the

illustrations were very beautiful. futuristic however, those illustrations created unrealistic expectations when it was finally unveiled, a tad bulky. and this was about wooing you. this is looks rather than brain. wantsgoes on to say she one. it is pretty beautiful overall. jonathan i've is a stickler for detail, the designer apple, they wanted to synthesize the analog sounds, the chimes the clock makes into digital sound because he hates the usual beeps and whistles that the usual watches make. i personally did not think it was that much of a difference from the samsung galaxy gear. >> it hasn't really caught on, hasn't?

>> i was expecting something sensational. it is rather elegant on the wrist. my boyfriend took a look at it and said he really liked it. >> you have to know how big it is. ita woman, want to know if is massive. let's talk about apple pay. they are taking aim at your wallet. they want to replace it. >> they are taking aim at your credit cards. theyesting, we understand are taking fees, splitting some of the fees with the banks. instead of swiping or putting in your debit or credit card or code, the fee from the retailer will go to apple. a nice revenue stream. you can get into a retailer and that they have the appropriate piece of equipment using the communication, you can use your print on the iphone 6 or iphone 6 plus.

you can pay for apps. it really depends of rather the retailers invest. 2200 already have. you can use in a starbucks, macy's, american whole foods. a lot of retailers. >> a lot of american retailers are about to spend a huge amount of money in terms of upgrading all their terminals. in part of ways, it is participating in that and thinking upwards. >> they are usually behind the game. we have contact lists pretty much everywhere, pin everywhere. the u.s. still swipes so they never made that overall investment. the u.k. retailers once again probably have to invest. -- it is half its sales so it is matters.

>> about is why you have an apple watch but only works with your phone because this is the key product for them. framed.inner higher resolution as we expected -- 4.7 inches. i think the gold one was particularly good-looking. >> i liked the gold one already. >> i like it. this is the key issue. it should be stronger. what i did think was important was it will have 25% more battery. the six plus we'll have 100% more battery life. that is important. what has been left out in terms of across-the-board information? with the phone, we know china has been left out. they don't know when they will get their sales. will have this phone by the end of the year but it would not be first on the

list when they allowed to get them shipped come september. --factory life of the watch battery life of the watch? >> we don't have an idea. that is what a lot of people are wondering about. there are also questions about how much the watch will cost. we know it is 349 dollars to start with but what about all the different ones? what about if you want the eating caret gold? -- 18 karat gold? >> what are people saying about the prices? >> i think relative to the competition, it is not bad. the cheapest version without sapphire. >> thank you very much. you can join in the conversation this morning on twitter. @markbartontv -- finally joining the twitter.

next guestme, our looks of the policies that are needed to help a global recovery. he will be with us after the break. ♪

time for today's company

news. pursuing a stake in the former italian prime minister's media set, according to people familiar. the're interested in buying 11% stake in the italian atv company. -- pay-tv company. and new sports car cost about half the price of its predecessor. the mercedes gt will start at about 1000 euros -- 100,000 euros. it has faster acceleration than the porsche 911. microsoft which makes the xbox video console is set to be in company buy the swedish behind the popular game online craft -- minecraft. leaders of the three largest

political parties in westminster are all making unscheduled visits to scotland today. event to last-ditch persuade voters that the u.k. is together. that is after the latest polls predicted the outcome of independence which is too close to call. the health of the economy, for more the head of research at your joins us -- patrick joins us. mark carney talks about a union not being really achievable. do not ripon saying the family apart. how big of an issue is this with clients, what are they doing and what are they telling you? >> what is interesting is that two weeks ago, clients were not so much concerned with this. outside of the u.k., internationally, people and not afraid. in the last 10 days, people are

panicking. we have seen some clients stopping to buy protection. it is a growing issue. with u.s. clients, it was a topic. it is quite worrying. >> what kind of protection are they buying? are they protecting themselves against falls in the pounds, equities? i have seen newspaper reports raising the possibility that we could see selling of u.k. assets. as a result of this. is this just newspaper speculation? >> i did not want to speak of a wave of panic. they want to unwind some position from the u.k. market. on the other side, we are seeing

investors increasing production just to hedge in case. >> what are you telling your clients? >> to be frank, the risk is there. all of us have been surprised. i think it will be foo lish. i would say you are more of an expecert. it is like gambling and no professional asset manager likes gambling. >> we are paid to look at the risks as we go ahead. we have interviewed a rewrite of people that sterling could hit about $1.50 but there could be some momentum. if in the event of a yes to independence vote, where without the most explosive? in credit, equities, currency?

how would it evolve most paramedics -- most dramatically? >> ai think the currency has hit risk. what we're seeing is credit and equity. point number two, if i take my hat, the risk is not only -- it is on european assets. u.k., i would say, it is weakened by this. it would have an impact on europe as a group. -- given the isope economy, the market not a good direct and. ion. >> are european investors looking at this in wording this could be a precedence for other states like spain?

is that all investors minds? >> absolutely. every time i have been discussing this internally and externally, we always end up with the conclusion that it opens the door for administration in europe. it is quite worrying. >> it opens the door for the u.k. leaving the e.u. as well. if scotland votes yes, it is more likely britain leaving the eu. do you agree with that? how will that play out until the referendum in 2017? >> exactly. it is a very serious risk. by the way, we cannot interpret it weakening. this is the downside. >> i want your quick take on

this. the biggest statement from blackstone -- the federal reserve is overvalued, interest rates. blackstone.rom how do you look at the world of risk? >> i tend to disagree with the statement because on the one are well, u.s. assets valued but not overvalued. why? if we look at earning prospects, the level of interest and inflation right now is fairly valued. it is europe. assets remain regulatory -- relatively attractive. one is japan. japan may be too aggressive. see what has been

put in place is quite risky. to make a very simple, to kickstart inflation for japan, you need to push assets, inflation of assets which is not good inflation or you push demand versus supply. consumption is -- we know the story of japan. the other parties in asia and china -- they have conflicting support. on the other side com, we have a banking system. >> thank you very much. he will stay with us after a short break on countdown. ♪

>> welcome back. it is 6:22 a.m. before the break, we were talking about japan. you are saying it is not a house of cards and you are giving them the benefit of the doubt. how long are you doing that and what is the key test still for you? everything that is launched are relatively limited on the real economy.

what we're seeing which is quite interesting -- i was in japan just before the summer. we were seeing some local productionuying some against potential rise in japanese dominated rates. it is quite interesting. when you see the level of the debt and interest rates in japan, it goes against what analysts are thinking. -- what the japanese would give confidence of them demographichave policy or to have an immigration policy. maybe the next question is germany. japan and germany are in the but demographic situation germany has immigration policy in japan is not doing this. -- they arelikely

doing some very good things. would it be enough at the end of the day? efer theeurope opr same way japan suffered or is low inflation no growth? >> that is a very good question because i think we cannot compare europe and japan. has a real positive demographic which is very interesting. secondly, we need to take into account they are facing deflation. it is more competitive deflation. europe is taking the way of japan. no way. we are in very low inflation, competitive advantage.

point we might have some positive surprise. >> a lower euro is good but you be 10% lower for really long amount of time. are we miss reading this move in the euro when we look at the equity story in europe? tie the two together for us. it wass remember when upgraded in 1999, it was done in 1.16 . we are makingally the same calculation. we find it is somewhere between 1.15 and 1.20. point number two, every time the boosts theling, it

japan economy. 1.15 forthe euro at one year, it would have a very positive boost on the japan economy. >> the ecb and what they are doing now -- the policy that is announced. what is that due to growth? >> to be frank, very little. in fact, it is helped weaken the euro. ecb is putting into place the framework which raises that. we need social reforms from government. italy, france. we need something that will kickstart investors and corporations. and big investment plan. it is ok but maybe not enough. >> thank you for joining us. , patrick.

theoming up, we look at u.s. jobs market in the world's largest economy when we speak to the u.s. labor secretary after the break. stay with us. ♪

>> welcome back to "countdown." prime minister any. the swedish krona, another country with an election. -- i am manus cranny. this is one of the worst performing g 10 currencies out there. they are no longer the social democrats but you could be looking at four parties in sweden. another set of polls on the 14th of september showing a disparate electorate. i could take the krone lower.

that seems to be the sentiment coming through. they have the threat of rates already being cut. keep a night on the swedish krona moving back to issues more here.nt than us the euro-dollar continues lower. we had just bytes of the 14-month low that currency is technically oversold. very little can stand in its way at the moment. we just spoke with patrick .egrande from societe generale we have french industrial production later today, no botany, all of the voices -- nov otny. >> is of the bloomberg top headlines. barack obama preparing to ask congress to pay for a multibillion-dollar plan to expand the country's military campaign against the islamist state militants. obama is scheduled to deliver in a televised address to the

nation tonight. we will bring you that live on bloomberg. european union is meeting to consider tougher russian sanctions and concerns of a fragile truce in ukraine days after the abrupt decision to put sanctions on hold in order to assess the cease-fire about risking further trade retaliation. the verdict in the oscar pistorius murder trial will be announced this week after months of court proceedings. the judge will decide whether the para-olympian deliberately shot his girlfriend, reeva steenkamp, but it was an intruder or fired out of reflex. >> job growth in america last month was the weakest this year, 142,000 well short of estimates and the unemployment rate fell to 6.1 percent mainly because people fell out of the workforce. we are joined by the u.s. labor secretary thomas perez live from melbourne. good morning to you. thank you very much for joining us today. >> always a pleasure to be with

you. 20 ands start with the g then we will focus on the u.s. jobs market. labour ministers from the g-20 are gathering in melbourne. that's why you are there. the world bank is warning the g-20 that slow growth risks keeping the labor market week until 2018. what actions can the g-20 group take to address those concerns? we having that conversation right now. i think there is recognition that we have to pick up the pace of growth. a couple specific areas where focused on in this particular set of meetings are picking up women,e of growth for female labor force participation in many countries including the united states, is not where it needs to be. similarly, we have a real challenge for young people

around the world. hundreds of millions of young people need work. i know that's the case in the united states where youth unemployment is unconscionably high. there are long-term costs to the failure to get our young people in the employment system early on. that will have a negative ripple effects for a long time. those are two areas of real focus. at the same time, picking up the pace of growth in making sure we put money into the economies of this world. issue in the united states is increasing consumption. it's roughly 70% of gdp growth. when we put money in peoples pockets, they spend it. businesses have to hire more, everyone benefits. >> secretary perez, good to see you. tell me a little bit about how you see the structure of the recovery,et within the u.k., in the u.s..

there's a lot of conversation about whether the labor market look structurally very different during this recovery as compared to previous ones. what are your thoughts? you correctly point out, in the united states where the economy continues to move in the right direction, last summer we had unemployment at 7.5% and now it is 6.1%. monthsad 54 consecutive of private job growth to the tune of over 10 million jobs and consumer confidence is at its highest level since 2007. at the same time, the structural issues at the part of your questions start with the long-term unemployment rate. ordinarily at the end of a recession, you see a long-term 1%.ployment rate of about in the u.s. and elsewhere in the alarmingly high levels of long-term unemployment. a point to meet with

the long-term unemployed back home in the u.s. they are remarkably dedicated people. the challenges the longer they are out, the harder it is to get a job. that is one structural challenge that we confront. youth unemployment. in so many countries around the too high.is just way including but not limited to the united states. i'm having a bilateral meeting with the germans because their youth unemployment rate is far lower than it is ian united states. we want to learn more about their apprenticeship system that has provided pathways to the middle class for young people. that's why am here. i want to talk about the good things we're doing and i want to learn from other people about areas where we have a lot of work to do. helping our young people get access to a good middle-class job and will the ladder of opportunity remain the big

challenge the united states and across the g-20. crannyetary perez, manus here. you talk about putting dollars in peoples pockets to get them to spend, drives the economy, reduces unemployment, as you say. how much tolerance do you see? you talk to the long-term unemployed. you get the feeling that a great deal do not want to come back into the labor market? hence the participation rate has dropped. is that i folly argument, secretary? can the u.s. economy tolerate higher interest rates? we are talking about the reality for the consumer. i talked to long-term unemployed all the time. they want to get back in the game. america works best in countries around the world work best when we field the full team. there are too many people on the bench who want to get into the workforce and get back into the workforce.

we need to do our level best and in the united states, we are about to distribute 150 million dollars in competitive grants to communities across the country exclusively focused on innovative strategies for increasing employment for the long-term unemployed. we are focused like a laser on that. our metrics are moving in the right direction but we are still way too high in terms of the long-term unemployed. conversation at the g 20 summit was the oecd released their report about the employment outlook. they have a chart of the minimum wage. in the oecd countries, the united states is second or third from the bottom and nine chart. that's what jumped off the page to me.

it's inconsistent with their economic self-interest. the thing i hear the most from business is the majority of whom support increasing the minimum wage in the united states, i need more customers. this is a consumption-deprived recovery. the data shows that. of thein the top 5% economic strata in the united states have seen their inflation-adjusted ending increase 17% since the end of the recession. spending 95% have seen increase 1%. they don't have money in their pockets. they do not spend it. businesses don't higher. simply put money in peoples pockets. frankly distribute the prosperity that we are seeing in the united states more fairly and equitably.

it's not being distributed fairly and equitably. that's why so many people are not feeling like they are better off now than they were a couple years ago. >> u.s. labor terry -- labor secretary thomas perez from the united states. he is live in sydney. we are joined by the bio agency to talk about all matters iphone, apple pay,". stay with us. pay and apple watch. ♪

>> apple's big day unveiled a bevy of products, larger smartphones, a new smart watch, a new payment system. did it live up to the hype? razzmatazz, huge building up, it's where they launched the imac. is it everything for the hype? >> it was a typical launch from apple. a huge audience, lots of press preamble. i think the iphone is a marginal steps forward probably competing

with some of the better or best smartphones out there. i don't think the computers -- the consumers will get too excited about. lowering of the price point is interesting to try to take market share from android it's about 30% so they will try to take that to a lower price point. the iwatch is the biggest thing. >> the standing ovation. >> they like to going to markets and disrupt them. market, aook at the lot of technology is coming into one single device. >> a lot of the product already in that field have been criticized. a nice quote from one of our colleagues at bloomberg news talking about how other wearable devices have in technology in search of a problem. is there a big market for

wearable devices? >> for sure. we are on the early adoption curve but there are some clear benefits. people are becoming more healthy and more activity from wearing the devices. it's going to make our lives more convenient. 2.8 million smart phones were sold, 13 million with the tracking devices. ari -- 2.8 billion, are you really saying that gap will close? is apple going to change the market? single-handedly but there will be a conversion of technology. we did not think we were going to be using those devices the way we do today. that's where we are going to go towards, a single platform. >> were you disappointed with the lack of details on the

battery and various price points for the watch? >> they talk about a more efficient chip making it faster. complaining about the battery, when you'd dig into the numbers, it is marginal improvement. the watch technology is not using wi-fi charging. you still have to take it off and plugging it in going against some of the new market trends coming through. there was no actual mention on how long it would last. one could hope it lasts at least a day. >> who did you speak to yesterday evening in california? what was the reaction? transactionhe system? what was the real standout? revolutionary -- for how we are going to live. will we use it to buy coffee and do transactions? >> there is no doubt that we are that isnto a society

cash-less. apple was quite late coming into theirc technology with units. it will start to change the way that they pay for stuff. the reality to the situation is there is still a lot of infrastructure changes from a retail point of view to facilitate this. overnight change. it's a view for the long-term. does this require some coordination to come up with some kind of device that retailers can afford to put in to all their stores? will they be prepared to buy one device for apple, one device for every single other provider? nfc technology should work between devices. the retailers will have to upgrade their payment point to make it possible. newre we going to buy a

phone, watch, tablet, pod every couple of years? is it less or more likely that we are continuing to replace them? >> i don't see myself rushing out to buy the iphone 6. iwatch has, to the market and they've disrupted it. -- has come into the market. >> and we are interested. you come from an agency side. they'll say it's about education. they are the drivers of educating us in terms of how to adapt. tell us what that will involve. are they going to absolutely slam us with michigan -- mes saging? >> is pure product shots. they really focus on the trot out itself. on the iwatch particularly, they're really going to hone in -- >> they really did not.

in >> they will continue in that way but i do think they will focus on the usability of the watch and the way that will come to market. these are not just very easy to use. i think there's going to be a natural pull toward technology and continuing marketing that are sure but i think it's a step in innovation. >> thank you for joining us today. peter veash from the bio agency. 6:49 a.m. in london. the social media on the short list. which platform making it into literature. "countdown" newspapers are next. stay with us. ♪

>> welcome back. i mark barton. 6:52 a.m. just over one hour away from the start of the equity session. let's have a peek at today's newspapers. >> it a story we mentioned break.the we have seen recently in the literature prizes awarded, really historical books set in the past and very much playing

on that. now we have seen a change this year. the short list has thrown that out of the window and instead really embracing social media. the judges are saying that's not really happen before. novels have not been focused on social media and that has been a bit of an oddity. facebook, twitter, and the like have not really been reflect did in the book world. to rise again at a decent hour, that apparently uses twitter as a plot device. twitter seems to have caught the imagination. >> and caught my imagination. >> just in the very recent past. >> in case nobody knew. judges who said twitter has taken appeal is that it is almost haiku to pick up on the japanese short

form poetry. they see something beautiful to distill into short poetic phrases. >> you know it made me laugh? how to make the rest of us look bad, he's tweeting at 4:45 a.m. >> @markbartontv has raised the game. we are talking tennis here. he beat the japanese player. the night before last, because it was not last night but he's the most famous croat or now? 10-15 wimbledon back years ago back in the early 2000. >> he's a his coach. cilic is fresh blood for tennis. guys are always going to be

around at the grand slams but now there are some guys who can win. and for andy murray, the writing is not looking so good on the wall. for the first time since 2008, he slipped outside the world top 10. >> he's probably got a lot on his mind. all at wimbledon this year. >> all of the legends. >> there were not as trim as they were. apart.t rip our family the world is in awe of what we have here, this nation. pseudo aboutt of it. from davidtorial cameron and "the daily mail" giving -- getting passionate. they are all running up there. themazing how we have seen

type of conversation change, talking about ripping a family apart. i'm sure it's no accident giving the most recent polling data showing that women voters were highly undecided. to have agoing conversation with justine roberts. >> the ceo of k sanders. we saw the debate between salm over, butarling were we talk about the significance of that. what impact can three englishmen south of the border -- nick clegg, ed miller band, david cameron -- will have? >> it was on downing street definitely. >> it was difficult to get it up this time. >> they're trying to pull on those hearts. >> apparently i'm on twitter. >> he's been paying someone else

to tweet for him. cranny. >> stay with us. we took another look at what apple has to offer. it's 6:56 a.m. in london. ♪

>> the weight is open. apple -- wait is over. heads tocameron scotland. worries a currency union would not be possible. >> munich forcing the company do cancel a couple hundred flights. ♪

it is 7:00 here in london on this wednesday morning. apple's new products have just arrived in a room packed with silicon valley executives. the company unveiled its next-generation. >> apple watches the most personal device we have ever created. make the best watch in the world. one that is precise. oris accurate within plus minus 50 milliseconds. it is customizable so you can find one that reflects your personal style. >> we have a new watch, a new iphone.

i keyed a for apple. this caroline hyde agree? standing over nation . he called it the next chapter. more than venezuela's economy. more than thailand. have seen a new category of products. there are so many questions. the best watch in the world is what they set out to create. jonathan irvine is so obsessed with this. he is a designer. apparently they managed to get a

professor of music to synthesize into sounds. they had a voice command. it is interesting. you are going back to the old school of how one communicates. you can draw doodles to each other. you can send messages. cancannot type, but you predict what you want to type. >> would you buy it? he said he quite liked it. someone gave me the gold one i would like it. the price point is $349 for the cheap one. how much will the others cost? we don't know when this is going

to arrive. we don't know about the battery life. it looks easy to charge. toy can give you away improve. i don't feel there is that much of a jump forward. of a gameel it's much changer. at most it is prettier than other smart watches. in that front i am not that excited. in the payments front i am excited. i would give anything to grab my coffee that much quicker. when you walk into whole foods, which already by next month will be able to link up with the watch, you walk in.

you will be right near the communications, and he will be able to pay for all your goods with just your fingerprint. -- they won't know what you have been buying. what ithat tesco knows am by them. >> you wonder if shops want to invest in that kind of technology. -- i like that tesco knows what i am buying. >> we had some numbers coming from kingfisher. we are going to be speaking to the boss of that business. we should speak about the secession at the company. veronique already works at the business. that is interesting and the numbers coming from the company this morning. french media company vivendi is said to be considering a stake

.n the set we are joined for more from man u -- men well. what is this news mean to us? is trying to build an empire around the pay-tv business. a country in which he owns a big stake. he is the second largest shareholder. sold the business gdp to telefonica. he will exercise each option.

nutshell, vivendi has become a vision in italy. >> he has been away for 10 years. why come back after a decade? >> that is a good question. vivendi has been shutting assets. it didn't make a lot of sense. they are trying to streamline the business and build it around pay-tv. italy has good assets. the pay-tv unit is a good chance for borrowing in the country. >> why the focus on italy? and howok at where people spend, italy does not rank up there. market.e of the harder why the fascination with italy? that is a question many

investors are asking themselves. one of thesents biggest markets in europe. doing great, but it still represents an interesting and exciting market. very well.e market he believes he can be very successful in a particular country. >> any update on what is going on in brazil? waiting. we are excited to hear from the regulator. that will be the next step. everybody is expecting a deal to be approved.

a big question about what is going to happen next. telekom has a big player through team brazil. is what is going to happen to that asset. >> thank you for joining us. >> president barack obama is seeking to expand the u.s. offensive against islamic state extremists. he is seeking billions of dollars to fund it. obama's proposal is not yet finalized. it is going to take something to negotiate. give us an update. >> so far according to an administrative official president barack obama is due to deliver a televised address this evening, part of which will be dedicated to delivering a strategy the u.s. will employ for dealing with islamic states.

they have already been criticized for lacking a policy to deal with these extremists who have carved out a territory in iraq and syria, terrorizing people, killing many, including those u.s. journalist who were founded in videos that their way online. obama will be presenting a plan on dealing with that. the u.s. has carried out 150 airstrikes in support of the kurds in the north of the country. has a broad-based government more to the taste of the united states and powers, this bolsters obama's mission when it comes to outlining his strategy for dealing with islamic states. >> what are the other moves against the islamic state by the u.s.? nearrtainly is nowhere

contemplating boots on the ground. it is about gathering political support. routing the islamic state does not seem to be on the agenda yet, but certainly entering orhem from providing aid for more moderate rebels. also include airstrikes inside of syria. that is something the u.s. hasn't done yet. were it to go down that route, it would find itself on the same , whose bashar all assad regime the u.s. is trying to topple. enemy if not your friend becomes your ally for when you are carrying out operations such as these. these are some of the

plans obama is contemplating right now. you say no boots on the ground considered just yet. one of his promises was to get u.s. troops out of iraq. they were responding to the question, if you were so adamant to get the u.s. out of iraq, why is it necessary to go back in? did you not think something like this could happen? perhaps that is one thing he will seek to answer. >> thank you for that. we will keep a close eye on the progress. >> we will take a break. after the break the british pound and pandora's box. we look at the effect independent scotland would have. that is coming up next, plus an event for wooded servicemen and women in london. we are joined by chairman mill.

♪

>> time for company news. the world's second-largest

luxury carmaker will introduce self driving technology very soon. they operate at speeds up to 60: mentors per hour. this comes two days after general motors announced they will introduce a self driving cadillac in 2017. a newco is launching version. 50-50 jointe a location. telecom italia wants $13 billion for its controlling stake in the brazilian mobile phone maker. .he unit attracted interest

those are some of the headlines. huge story in the united kingdom. secondarys are the issue. it is the ceo. he is stepping down. ceo in france. veronique was appointed. she has done 10 years, group director. we are going to catch up. it looks like they have had their best first half in 10 years. isshock, but that reassuring. foreign exchange has played a little bit of a roll. france saw a little bit of growth even though they have

gone into recession. profits are up 17%. definitely that is the key thing. market positioning suggest the british pound has before thefall scottish independence vote in eight days. the polls show the lead for the independence campaign and increased byd it the most in three years. good morning. box, howoned pandora's it could open if there is a yes vote. describe what pandora's box could be. what sort of scenario are you painting if we have a yes vote? backflip me start i saying we

still get to go for a no vote. is going to beme much closer than expected. , a's look at the possibility significant risk based on what polls are coming out, that scotland vote for independence. , there is ai see host of uncertainty about a large number of things. what currency scotland will adopt. what will happen to the remainder of the debt to gdp ratio. we will probably gravitate from 100%. 90% to close to some downgrades

by ratings agencies. >> that depends how much debt scotland takes. >> strict lee speaking it is difficult to gauge what you're going to do. that is one of the problems. we don'that happens know how that will happen. will it a population-based? gnp-based? there are all sorts of speculations? is the uk'sing economy has been growing robustly, but this uncertainty may create headwinds, which will have implications down the road. therefore, it is not inconceivable to think the bank may delay the first rate hike. >> were you surprised carney made those statements?

up,her the taxation goes they said, get ready, there is a rate hike coming. head.o bowed his not surprised. in their minds there is a scenario scotland will not vote for independence. this is a working scenario. that is what they will have to base their communications. then they don't know what it is going to imply if scotland goes ahead as an independent country. it's something they have to work out. >> we will find out what else is in pandora's box.

>> welcome back. head of global credit. there is a yes vote. i have seen people scratching their heads, trying to find some kind of resident it -- president , -- precedent.

some people have looked at czechoslovakia. are they ready? >> i don't think this is a good precedent for three main reasons. intense capital controls czechoslovakia imposed. thirdly, you are talking about 20 years before, which means trade and international links were much slower compared to what they are right now. there is anything that resembles what will happen to sterling and the remainder of if a yesand scotland vote goes ahead. that has everyone scratching their heads what will happen with sterling. everyone is obsessed with levels. >> we are.

we are obsessed with levels. difficult, but i think it is fair to say if the yes vote goes ahead over the next two months i could see sterling easily at the 150 level, largely because of uncertainty. in the medium term and may bounce back. gett of things can resolved. it is the uncertainty in the market. you look at the positioning, they came down, but they remain at or literally high levels. which means this poses further downside risks. >> and no vote, what would that give you? is easier to see what happens if you decompose what has happened to sterling since the beginning of july.

since the beginning of july sterling has lost 5% or 6%. >> we could get that back. >> not all of it. >> we have got to wrap it up. stay with us.

>> welcome back. debate scottish independence for the last time ahead of the referendum. by aebate will be held parenting website. the key for winning the coveted female vote. joining us on the phone is the ceo and founder. thank you for joining us. i had a quick look at the list

of questions building up already for these two. anybody who thought this conversation was going to be might be intopics for a surprise. we have mortgages, eu membership . give us a sense of what this conversation is going to be ?bout >> it is going to cover all the areas. passagebit of a writeup for your british politician. they underestimate because i tonk it is quite difficult give the party line and evade the question altogether, because these are real people and they ite real concerns and wants back and take the usual politicians blurb lying down.

anything it is a test of authenticity. it's a test of your ability to answer the question and listen and speak to the question. they will have some pretty searching stuff to deal with. detailse showing some of whatrecent polls users want to have happen. what are the conclusions from that? likely1% thought it was scotland will keep the pound, but what were the more general conclusions? poll.is not awaited 48% said they were favored ts and 11% were decided. if you look behind the figures there has been a move towards

the yes vote, a lot of it because of the negative topaigns they are perceived have run where they merely talk about the risks and not the benefits. tot is another theme questioning to ask alexander why scotlandplain could it be like denmark and do perfectly well on its own. roberts, the ceo of moms that -- of mumsnet. >> we have news including that our guest ian cheshire is stepping down as chief executive and is to retire in 2013. just a look at some of the stats. 16 years at kingfisher. seven years as ceo.

you have delivered a 16% return. what is the next phase for the company? any company.ke plan when the cycle shifts. i think we have identified this as the next five-year cycle is , particularly with the deal in france. it is probably better to sit and hand overoint to the man running our french business. it is a smooth handover and has been well organized. >> markets certainly like smooth handovers. just looking at some of your numbers, the u.k. and ireland, the best in years.

do you see the momentum continuing in the u.k.? out ournk if you take development markets, profits are up 6%, and we have strong cash generation. we are buying back our shares as of this morning. was 17%in the u.k. it up, which was truly a great performance. he has had a phenomenal year, just launching in germany and doing very well. i am glad to say we saw in august a slightly better trend than in june and july. while we expect angst to be difficult, i think we have a lot of self-help to deliver. you have been quite vocal in

regards to the referendum in scotland. we have just spoken to the ceo of mumsnet. advice for cameron and his cohorts running to scotland. what message should they be giving? have you been on the phone telling people to support this campaign? >> i think there are two points. one is this is a stronger deal if we are together. better economic and social future for scotland. these are real risks. the reality is there are extra costs for a new country. there is no way there is going to be a currency union. ishink the current situation extremely attractive, and the risks are generally there. -- genuinely there. is not scaremongering.

this is sober reality. >> have you and the board discussed lands of what you would do into -- discussed plans in terms of what you would do? there is a host of issues. what is on the agenda when this comes up? >> you have put your finger on it. part of it is the level of uncertainty. the pound wills continue. i just don't see that happening. there are lots of people in europe who will object to scotland becoming part of europe. the problem we have is it is not clear how this is going to pan out. most businesses have to carry on. you are not going to pick up the shops and move themselves of the border. we will have to review investment plans. we don't understand what environment we are coming into. they have 30,000 or 40,000

product. you have to reprice or relabel all of that. this is not a small undertaking. let's see what happens, but let's pause and wait. >> you have mark carney and the bank of england saying they are ready to go ahead and raise rates. of one of the biggest companies. do you trust mark carney when he says rates are going to go gradually? do you have a crystal ball? i am extremely impressed by the governor's handling of the situation. i think he is a class act. a veryk of england is capable bunch of people. i think they are imagining the situation -- managing the situation well.

i think the good news is there is not going to be any fast rises ahead of real signs of recovery. the key measure is until we see wage growth i don't think we're going to see much in the way of rate rises. i am relatively confident the governor is reading it right and fully support his stand. >> when these hikes come, people are doing a little more work rather than moving. we are going into a new cycle on interest rates. what is the tolerance level for the consumer? hikes?think a cycle of >> if you look across europe and a lot of other countries, the u.k. is showing stronger signs of confidence. the u.k. is in significantly better shape. people understand there will be

some rate increases. there is a question of how quickly that feeds through, and if there is a series of small increases, i am not sure the overall impact on consumers is going to be that serious, plus i think you have to look at employment, which is one million more people. cannot let you go without asking, what next? you are impressed by the bank of england. what are the plans? banking, politics? ?hat next >> i don't know what i am doing this time next year, which is a terrifying prospect. i think my wife would like me to take at least one month off. we will see what happens. no particular idea at the moment, but thanks for the hought.

>> it's great to have you with us. thanks for giving us your opinions. we wish you well. thank you. ferrari.oming out of the chairman has resigned. on resignation is effective september 13. on monday we led with the story. we spoke with people familiar with the matter. we said before are a chair is poised to leave for rory because of a clash with the brand parent. fiat does own for ari. ferrari. .hey have proven correct both the client to comment in light of rumors this week. for ari is 90% owned by fiat -- is 90% is -- ferrari

owned by fiat. the vision was to retain an autonomous status, to limit sales to 7000 cars a year, to preserve exclusive allure. that strategy clashed with the goal of having for ari -- having bolster with the merger with chrysler. ari -- ferrari chief gave up that role in 2010. he has exited. a clash of egos. they are too massive figures in the italian industry.

>> he said he didn't like the way the business has become american. some tough were coming through. after the break, a sports event forwarded servicemen in london. we are joined by the chairman. ♪

>> today marks the opening day of the international sports event forwarded warriors launched i prince harry. by our guest. it was prince harry's idea. how did the idea come into reality? a prince harry has been serving soldier. he has seen the impact of on his comrades. to competecolorado in the warrior games. he was impressed with what he saw but not he could make it

much bigger. >> give us an idea of the size and scale of the event. >> it is pretty big. the first medals were presented yesterday. . >> are all pretty excited you will be competing in how many events? the 100 andpossibly 200. >> what does it mean to you to compete in these games? >> five years ago i was lying in a ditch in afghanistan. my leg was amputated. mark the endt to of a journey. >> i read that you found guilty about the type of life you were leaving before you had your right leg amputated below the knee. is that true? helping wounded warriors i

have done triathlons and surfing. .> you must have been quite fit >> i was in the marines, but as far as these things i have never done before. made me realize how important it is. >> what is the legacy? we always talk about legacy. what is the legacy? of these games is ,o inspire guys like andy hundreds of thousands around the world who have been injured. to do that over time these guys have to live with their injuries for the rest of their lives. continue in the future, and firing guys like andy and employers to take these guys on.

they make great employees. >> is there a sense there is a broad understanding of the services delivered by servicemen around the world? do you get a sense of the service they have delivered? >> it very from country to country. organizations, these guys would be progressively forgotten. we have had conflicts for the last 10 years or more. time goes by it's important the fence.rget >> how have you set up your motivational speeches? >> i have been able to go into the corporate world and sports

teams. hopefully just trying to inspire people. sometimes things aren't going to go right. >> they can buy tickets. i can't see the foo fighters. >> the event tomorrow is sold out. there are still tickets. the euro euro may 12 pounds or so. they are all may 12 pounds or so. >> think you. back to you. >> we want to bring you some breaking news from the spanish bank.

saying they regret to announce this morning the chairman of the bank passed away. there is no more detail at this time. they say the appointments of renumeration committee will meet today to appoint a new chairman of the bank. he and his family in the spanish and u.k. banking scene. in 1971 when he actually joined the company. you mentioned the u.k. inricia is chief executive the u.k. since december of 2010. she was the chief executive of alliance investors. >> we will take a break.

7:51. you are looking at a live view of the city of london. we will tell you where equities are heading after the >> welcome back.

as the scottish referendum approaches eight days and counting i have been looking at tanks and forecasters have been

changing their calls. the pound against the dollar falling 3%. that has quickened following the polls the yes vote is ahead. their call over various periods. i am focusing on the fourth quarter of 2014. i have just got down a page. the top of the chart. for 160 by the end of the year. why this is so brilliant is you can see when banks change their forecast, what the forecasts are, and you can find out why they change their forecast. uncertainty may move it down to

155. the sterling selloff is not over. isk at how the forecast moving. >> that will do us. we will see you after a short rate. -- break. ♪

>> we are just minutes from the start of european trading. prime minister david cameron is going to scotland. he is going to try to convince the scottish public to vote no to independence. panic the markets have been moving. caroline, let's start with you. we know what the phone looks like. >> and the watch. the next chapter in apple's story. system to the payment a room packed.

did apple live up to the hype? i am a little disappointed. i will tell you why later. >> clearly apple you can main -- you can maybe check in on your flight with apple watch, but not yet. they have a pilot strike. some flights will be expected for eight hours. the threeders of largest parties in westminster have ripped up their schedule. they are hot fitting it to scotland in a last chance to save the union. we spoke to ian cheshire. notays the risks are scaremongering. he says it is business reality. >> signs of nervousness. we have