>> independence would not be a trial separation, a painful divorce. >> prime minister david cameron makes his final plea to scotland to stick with england. -- burberrytopics talks tax -- tech. the company to cannot live in a sideloading world. >> prepared for a strike. ♪

>> "welcome to countdown." barton.k >> i am anna edwards. it is 6:00. u.k. prime minister david cameron has returned to scotland attempting to save the union and prevent a bigger redraw drink of the political map. he gave a speech. >> the nationalists want to funding on pension and health care, u.k. funded and protection on national security. these are the facts, this is what would happen and end to the things we share together. and the people of scotland must know these facts before they make this once and for all decision. not to scareces is monger but warning a friend of about a decision they might take that would affect the rest of their lives and the lives of

their children. >> the independence of leader countered the prime minister saying that the next time david cameron comes to scotland, it will not to be to engage in last-minute scaremongering but to follow a yes vote for referendum talks in the best interest of the people of scotland and the rest of the u.k. david cameron talking about what ofcalls the illusory dream independence. the second dutch jake peavy estimated to scotland in a week. he hashe second trip made to scotland in a week. it talked about the painful nature of divorce and trying to establish good relations with your big and dominant neighbor. is england. trying to establish the relationship after you filed for the divorce. aberdeeneron was in

promising a program of change. we will see the labor leader and a scotland and the echoing a motif.r it is not a vote of continuity or the same thing but a vote of change. that is the message they are going. saying it-- salmond is scaremongering. have seen some interesting moves a credit markets and commentary from alex -- and ,reenspan, -- adam greenspan the former fed chair. many voices from all over the world of glade will finance -- global finance weighing in. --the market carney speech the mark carney speech. >> exactly. and a former bank president writing and saying the breakup

of the u.k. would be a diminution and a tragedy of the west just when the u.s. needs partners. the destruction they see at the moment and will be from other challenges and the geopolitical challenges. >> you mentioned credit. it makes you wonder what will happen to the u.k. guilt market? we spoke to a number of economists, 28% of the economists we spoke to said the guildon the 10 year u.k. could rise between two point 75% and 3% within a month. it is 2.54% now. we could see a rise in the yield within a month. leave -- responders to believe between 25 and 30 basis

points. 9% of total u.k. output. we are still done baiting if -- we're still debating if salmond will pay his proportion of debt. debt as a proportion of gdp would arise, does a mean of a creditor rating would be cut? that is one of the big questions. we have not moved as much as sterling. is it because it is a yes vote. the bank of england would be forced for a rate hike. >> and they would underwrite. >> exactly. at least in the [indiscernible] we got a yesy if vote, it is likely the yield could shoot up. >> it's a lot if you are in credit markets. perspective, in a

an eight month high in interest. a survey of foreign exchange economists that were talking 10% fall in sterling on the back of the yes of votes. rippingt conjure up apart the union that has been in place for more than 300 years? the historical significance may be out of step. to get furthere more information on the subject. >> you can join us on conversation on twitter today. there you go. the largest luxury good maker, burberry, it was at fashion week yesterday. the flagship event was the first hosted by the event since the creative director took on the job as chief executive. we were behind the scenes. was thinkingif he

about risk on the runway or the bottom line. the two are indistinguishable. we need to keep moving burberry forward and do new things. brandve animation of the and create something we believe in a so our customers get excited and they are inspired. >> is it growing on the catwalk? >> it is always the same. the runway is basically something where you have 12 minutes to inspire people and sometimes you might do something unexpected and sometimes you want to do something more familiar. it is about feeling and emotion. and that has to then turn into something very tangible. that was emotion that turned into something tangible. >> asked the length. technology a big part of what we are doing. twitter.

-- >> excellent. a big part of it as well. is it turning into an arms race? is burberry known for its technology? >> it is indistinguishable today. a company cannot live in a little silo world. technology is hugely important. as is music and craftsmanship. it is all about being curious as an organization and making sure you are part of things happening and making sure you play and you build partnerships with a long-standing one. sometimes that can be with the crafts people or technology companies or musicians. that means move on. hurry up. rapp up. caroline joins us to talk about burberry. christopher bailey is focused on technology.

>> we heard him speaking to guy johnson and they were launching the flagship with twitter. twitter is helping people using social media. it is about twitter and facebook and instagram. twitter allows you to buy some of the burberry products. the likes.and from the catwalk immediately. creative andng pushing boundaries. it is always pushing boundaries. priority for christopher bailey. 53% of shareholders reject it up a package. rebellion built up of the pressure. he had it to create something not only great for the catwalk, it is about wildlife, british wildlife. , inspiration

basically. the delicacy of a wildlife. transparent butterfly wngs -- wings. honeybee colored suede. he had to be commercial. moss in the front row. the face of the fragrance. he is trying to play to the shareholder crowd as much as to the fashion crowd and pretty much the reaction has been pretty positive about the actual runway. he is shocked to pushing the boundaries in terms of technology and get people to buy things immediately. >> caroline hyde, thank you. the latest news on travel strikes in europe. strikehave canceled the for today. the german airliner will review talks over pilot time and benefits. striking remains an option. the air france strike is still going ahead and 60% of the

pilots will not fly today. ourmore, we are joined by transport correspondent. better than expected today for some passengers. ,> if you are flying long-haul you are better but for air france, another long day. i had a great number from air france, they sent 600,000 text messages to passengers who were flying today. they were automated. [laughter] maybe some problems in the staffing. that gives you a sense of the scale. and in terms of the issues, the practical issues and the pr. it is terrible publicity. over a majority of the flights yesterday. it is terrible.

it is supposed to drag on until monday of next week. >> how long do you think it will take for bookings to recover? >> earlier this year when there were strikes, it was a three day strike and it took six weeks to recover. some said it had to do the general weakness and weakness in sales on the strike. six weeks is sort of a general benchmark. >> are people booking with other carriers? chathad an interesting with a guy who works on a booking website. and yeah, they said a 100% increase. people are opting for a private jet. an entire plane with 90 passengers. >> the upside. kari, thank you. the latest on the aviation sector. economy is what the

scotland will end up with according to our guest. we will speak to her, next. ♪

>> time for company news. average offered 3 billion euros to a spanish company. it is the biggest takeover attempt in more than a decade. it will give orange about 1.5 million subscribers. it will combine packages. companies try to snap up landline assets. alibaba rates and the amount it is seeking in its ipo to as a more than $28 billion. offers are the shares are being shares are being offered which would give the company a market value of $167 billion. the american energy company may according totate the financial times. the sale could raise between $2

billion and $3 billion. it on a 24% stake. >> with two days to go to that scottish independence of vote, david cameron has made his second trip rallying to keep the united kingdom together. more pledging the west and sovereignty without the potential dangers awful independence. you do not get of the change you want by ripping your country apart. by do not get change undermining your economy and damaging your businesses and your place in ago world, but you can get well, concrete change on thursday if you vote no. this is as usual is not on the ballot paper. the status quo is gone. the campaign has swept it away. there is no going back to the way things were. a vote of no means real change. >> we are joined by the finder of the -- founder of the rpm

group and an author of a book. pepper. we will talk about the book in a second. let's start with scotland. you have harsh words, don't you? >> first point, it is a global phenomenon, we are seeing separatist movements everywhere. of theancial structure nation and they live in is not serving their interests and why do i belong to the state? catalonia wants to check out of spain and they u.k. is talking about checking out of the eu. scotland also and california as a well. they need signatures to break california into five new states. to understand the global context. how is scotland going to make a living. assetsea that the oil

will cover it does not make any sense. scotland is not saudi arabia. what are they going to do, nationalize it? it does not belong even to the u.k. but to the oil companies. >> the yes campaign said they would be able to create a small wealthy country along the lines of other countries relying on oil. create some type of sovereign wealth fund and to do you not to buy any of those arguments at all? >> i do not. a wealth fund requires a revenue, cash. they do not even know yet the cost of running a new country. an estimate came out of the funding gap for the scotland all loan. being a significant proportion of that. the good news about this is it is forcing people to really

think about economics and governance and that can not a bad thing. if they go independent, it will work in any way it can. inm not saying it will fail any way but the prospect of fermenting an industrialized country, it will take -- said we are looking at her the wrong way and not all about monetary but also about values and the best way to deliver scottish values if they can be defined. talking about this in purely financial terms, do we met half of the story? >> i would totally agree. it is a cultural phenomenon. it is globally everywhere we see the separatist movements occurring. however, economics underpins all of that. in the end, people will, back to the simple facts. -- people will come

back to the simple fact if it adds up or not. stays on with us. more on the bank of england and scotland independence. ♪

>> "welcome to countdown." i am anna edwards. group back with the rpm

founder. you have a new book which helps evaluate their geopolitical landscape. what is it about -- inflation or geopolitics? >> it is about both and it connects the signals. you do not have to be an expert, just observe the environment around you. i have talked about a record high price of beef. >> did you coin the term? >> i have been talking about it for a long time. that shrinkflation leads to the jetsmesses between fighter and airplanes. their perception that the eu weather has chosen to inflate its way out of debt and shows up in higher food prices and that you stabilizes the population so

they feel justified. that is the core of the book. the fed is meeting. are responsible for their own a monetary policy and that can raise rates. you can raise interest rates in india and china but it does not bring down the price of protein. >> you are saying growth and innovation? >> that is the bottom line. insulation kills deflation. that is open to debate. what i know innovation kills both. that will fizzle both the deflation and inflation problems. about who is building the economy of tomorrow to give people hope. sector, so much innovation going on. not just technological but innovation and business models and personal definition of what you do with your time and career trajectory. sector.ross every

i cannot name a sector it does not. >> is shrinkflation accounted for in statistics? >> the fed would say yes. i am not sure they can accommodate especially given the fast pace. what is important is it has moved on. shrinkflation was a precursor. very small but the cpi is rising which is what the fed wanted. it is what they wanted. it is working. you cannot deny it. the only question is, can they control the outcome? some will say yes and some will say we will see. >> will the federal reserve tweaked the rates? >> yes, they will raise interest rates and began giving us a forward guidance. any interest rate hike below

break even is not going to be called a rate hike but a normalization. >> thank you. pippa joining -- [o[-- joining us. ♪

"welcome to countdown." i am mark barton. sterling against the dollar. two days until the scottish referendum. a sterling is falling again. a year to date chart. the euro/dollar. do not worry about that. sterling is down for a second day. it had arisen a 44 consecutive days. 4 it had arisen for consecutive days. it has fallen by four -- 5.5%.

a couple of big events. the cpi data coming out of the u.k. was one .6%.figure does a given the bank of england more scope against the raising the interest rate? the fed it will meet today. anparing the markets for eventual rise in u.s. interest rate and the scottish referendum a vote on thursday. implied volatility on the paneled versus the dollar. it has fallen 14% over the month from a three-month high. has come down. the pound is lower for a second day against the dollar. cpiscottish referendum and and the fed is on the three big events in the next few days.

>> the top headlines. david cameron makes his final plea to scotland to not leave the u.k. and in a speech he promised change and unprecedented power if they opt no. isx salmond said cameron "scaremongering." south of the border, in support of scotland staying part of the union and were joined by celebrities. one said at the united kingdom was one of the greatest ideas ever created for the modern age. ukraine's cease-fire is under threat. the city of donetsk has been , killing 20 people. ukrainian a lawmakers will meet president poroshenko and his top leader in parliament on later. >> tdc is to acquire gas. -- guess.

it will be one of the biggest cable providers. good morning, sir. thank you for joining us on "countdown." us today.for joining why have you decided to make this acquisition now? because it is a fantastic asset. it is a natural extension we think of our current cable operations and we already on the leading cable in denmark. of the mostansion attractive of the scandinavian arkets where we already have business. it is a very nice sit within our fit withineficit -- hours to -- strategic footprint.

>> you have flattened your dividend to 60%. does it tell us a bad deal may not be worth it? is it the best way to finance? thehat we are seeing in share price reaction yesterday was a somewhat expected. we have revised our dividend outcy and we will be paying a high dividend and yielding very nicely against telco. it is a reduction from the levels we the operating on historically that you alluded to. in terms of the way we have chosen to finance the transaction, it is fully debt-financed, so there are no equity issues. the feedback we got from investors yesterday is they appreciated that and they would rally see fully debt-financed. part of the way it stacks up in

preserving our investment grade rating which is very important to us, their dividends needed to close my down is which owns a normal level within a the sector. >> what about your credit rating? it could go saying down another notch which is the grade.vel of investor is it acceptable to tdc? >> it is acceptable. our policy is we are very committed to maintaining an investment grade rating. as you say, our current rating can go down one notch and still be investment grade rating. it is acceptable. >> where does that leave you within the whole m&a landscape across the european telecommunications a sector? this is your biggest ever deal. can you compete with the biggest regional players or will you remain a takeover target?

tdc is, this scandinavians largest tv provider and we are both telco homenications and entertainment company and that is very important for us. in terms of the way things are moving in europe, i noticed that orange is offering for a spanish infrastructures and good quality assets and home entertainment. this is going on right now in europe. whether tdc is more or less than a takeover target is arguably a question for someone else. operatingto focus on and developing our business. >> you still have an order then it growth problem -- organic problem. what is the resolution to that?

>> in you are right in saying the danish telco company is declining. since we have such a big chunk, it impacts our numbers. our strategy in the danish market is we offer as the holder of fixed and mobile infrastructure, we offer a full suite of products to our business customers and residential customers and our strategy is all about bundling and at the various products. useruilding of intuitive, interfaces so the whole convenience aspect of how you use all of these communication products in 2014 and beyond. >> thank you for joining us today. my sincere apologies for the introduction. speaking to us from copenhagen. coming intos

europe. company faces regulatory hurdles and competition from local media companies. hans nichols joins us from berlin. tell us of the latest. >> it is finally here after much waiting, netflix is arriving. they had a big launch party in paris. berlin.tings will be in france, belgium, luxembourg as well as germany, austria, and switzerland. the goal is to get 200 million. they are tortured million households in europe. 80 million broadband. shy, when you look at the numbers in china. -- as they are 200 million households in europe. view one a long-term

expansion. here is reed hastings last night. will be challenging to be profitable. we have a lot of content. we keep getting more confident and more confident. 5-10 years, we should be profitable. of $30as a market cap billion like cbs. it is a simple strategy. to figure out licensing and create original content and how people watch it. licensing deals are a problem for the emmys in germany, a cup -- licensing deals are a problem for companies in germany like a couple here. licensing local content and developing local content and commissioned a , aies set in marseille family struggling that is set in the political context. we have our great originals like "orange."

>> the goal is to have over eight of percent on revenue outside of the u.s. right now, the estimates in europe, 20% of revenue. your are northern europe a country. they have challenges but they are enthusiastic. >> it you make a sound so easy. it and selland make it. will you be able to watch "house of cards?" >> it is one of the want you cannot watch in germany because it is license by deutschland first up it is tied up. -- sky deutschland. it is tied up. if you are living in the u.k. or states, i do not know if it is legal. that kind of gets to the challenge. you have these great hits people want to watch but they are tied

up elsewhere. if you want to pretend like you are in the states, "roosevelt." if you want to watch public broadcasting, ken burns' documentary. great program. >> thank you. hans nichols joining us. >> there is a great program called "in the night garden." >> look at that one up. >> it is a kid upon this program. coming up, the cost of independence, the scottish taxpayer would have to pay or hundred 80 pounds more per -- head with aore per professor. ♪

>> welcome back. this is countdown." i am mark barton. how much would independence cause of those scottish taxpayer? has crunch the numbers. he came a with 480 pounds per

person. good morning. thank you for joining us professor maclean. this figure, how did you come up with it? on independence day, the immediate change is simply that scotland ceases at getting transfers from the u.k. and acquires the oil revenue. it is a quite simple sum based on the statistics to say, does a gain or lose? in the years in which the revenue is flowing freely, you gain. in years it is not so good, you lose. >> the problem with working out of the sum, it must depend on what you estimate oil prices are to be and that is one of the problems at the heart of this debate, isn't it? >> oil prices and oil volume and the cost of production is all of

the unknowns. body whichvernment's exist to keep politicians honest, it is not just forecasting declining oil revenues but also it revises is forecast is for six months. forecast, each has been over optimistic in terms of the numbers as of a come the scottish government is saying the numbers are hopelessly pessimistic. anybody can a play that game. i continue oil production in the north sea will soar in five years but i am not in the own authority. >> will there be less spending? there will be less to spend on the nhs? >> bear in mind, it is a retrodiction. it is what the number would have been it if scotland became

independence. it would be different on the actual day. on less not be better oil revenue and the very near future would creep up or shoot up rather. yes, the choice would be if you want to preserve let alone expand the nhs, you would have to cut something else. i called it a retrodiction, a historic number. assumption on tax and spending. the s&p can counter by saying we had different plans in the future. >> they can say we plan to tax more and spend less a button they will not say that. >> what issue is the most pressing in your mind? the economy, trade? what is weighing down the most on your mind ahead of thursday? to be currency.

i really, really hope we do not have people withdrawing retail favorites, their savings on friday if the vote is a yes. obviously, that is a risk. and mark carney -- of 18re was a period months after the vote where nothing changes in the sense of where scotland as part of the u.k. and all of the perks that goes with it are all in place. if it means protections for those in deposit -- >> absolutely. the data message cannot be said to often or too loudly. an investor is protected. >> you are worried it might be a bit of withdrawal from a banks? 1993 which indied effect lasted 48 hours because at that time, the slow that's recognized -- slow back --

slovaks recognize they will be less than czechoslovakia. they put them into check the banks. the situation is not the same and i do not want to sound the alarm because what you said is true for stump there is complete and investor protection, sabr protection. -- what you said is true. there is complete and investor protection, sabra protection. >> what about negotiating a with the nato and the eu? we heard from a representative is a procedure. you have to go through the procedure. he is not making it sound like there will be a quick track. >> it works by unanimity. every member. i do not know how easy or difficult it will be. is theious problem

scottish government wants to be a member of nato and also to remove the submarine force. if they voting yes, it is between of the parties. they u.k., the rest of the u.k., will be a member of nato and would have a view on it. , politically, it cuts multiple ways. getting rid of the nukes is indeed a reason for voting yes for many people. >> what about the role in of the eu? would it be a fast track process, professor? would there be a condition that it joins the euro? >> that is a political question, not one of [indiscernible] i would make two observations. in practice, the eu which is in trouble will not throw out 5 million of its citizens. the other is the would be terms

will not be as favorable as they get into the present. an independent scotland would not get a share of the current eu rebate. that happened some years ago. and we do not know what the terms will be as everybody is saying. a number of members, spain, have an incentive to make it difficult but i do not think they would block. >> are we allowed to ask you which way you are leaning? >> you can but i will not say it. >> professor, thank you for joining us. ian maclean. >> the future results of the scottish referendum. could there be voting and of the cloud? forecast incloud's the newspaper segment, next. it is in the cloud.

♪

>> "welcome to countdown." i am anna edwards. over an hour until the start of equity trading. from theicked up papers. caroline hyde has joined us. -- hans nichols from

berlin. >> a bit of fashion meets referendum. this is in "the times bank comments.twood's she is english born. apparently, she hates england. she said scotland is better. she has all of her models in her fashion show wearing "yes" badges. she has her own designs that she likes scotland so much. shiva put out leaflets on the seats of her runway shows. fashion is weighing in. >> hans, what do you have? >> i have the front page. essill cover up at the ch story. i will go to the photo of the day which is bill and hillary clinton in iowa.

it is already starting. it has arrived in germany. the u.s. presidential race. stories irn this into wish our editor will let us do. say tv chess? >> i think he said chess. when you are not sure with hans expected the worst? >> a british lady from scotland took this photo of the cloud and a look. scotland. it is an omen. >> i am not sure about whales either. >> that is it. >> "the guardian" has in its op ed, a professor as the london optimisticconomics,

about decreasing admissions and driving growth as they have seen a but pointed got jobs needed to be done to make it a reality. you can join into the conversation as "countdown" continues in the next hour. ♪

>> independence would not to bh while separation, it would be -- what not to be a trial separation, but a painful divorce. >> david cameron makes his final plea. provider fornish biggest stop the takeover attempt in almost a decade. morerope braces for strikes. pilots will walk out today. talksberry's bailey technology. he said the company cannot live

in a siloed world. ♪ "welcome to countdown." i am mark barton. >> i am anna edwards. welcome to the second hour of the program. it is 7:00. >> caroline hyde is here with the details. >> sales are up 15%. it appears to have beaten estimates. they were expecting a 9% gain. june was a terrible month. they had a catastrophic fire and our distribution unit where 20% of thisnventory particular distribution warehouse was compromised and of the fire and sprinkles. they had to close over the weekend and cannot make deliveries. many worried about the impact.

we have seen profitability and they are saying to their gross margin is down six basis points. clearly, about 6.4% on the prior year. they have been warning about profitability through june. >> the fire is an added headache for the even before that, things have been tricky. >> june 5, they came out with a cut and they said we need to inand and get infrastructure place because they are trying to become the most popular online fashion label for the twentysomethings. it is a company that has led the charge. they been able to get the clothing out within a a day and do returns and led the way in e-commerce is going for fashionable outputs. this has been a company that has bet big on many of the hedge funds and feeling it is the way

in which many companies will replicate and the share prices had a massive fall so far this year. down 60% year to date. it would've big qualified for the ftse 100 if they wanted to be listed. they have wanted to be listed on aim and not the main one. it has made them that bit. rose 10 times from 2010 and 2014. february was the peak, wasn't it? >> they said retail sales are up 30 -- 33% in the u.k. and we were expected them to be particularly strong. the united states, overall, less so that we are expecting germany to be strong. u.k. to be strong. because of the british pound as special before the scottish

referendum, it was hurting sales in the u.s. and the rest of the world. is a u.k. toing outperform and it seems they are outperforming in terms of the fourth quarter. 15% and that -- seems to be missing estimates. overall, we are seeing a hit to profitability as well and we are going to say where the company directs us. pretax.nce on that is for 2015 that will be similar to 2014 in terms of guidance. david cameron returns to scotland. to saveother attempt the union and prevent the read/write of the political -- three drawing of the -- redrawi ng of the political map. >> the nationalists want to

break up the u.k. funding of pension, health care, and comprehensive of protection on national security. these are the facts. this is what would happen. an end to the things we shared together. people of scotland must know these facts before they make this once and for all decision. the consequences are not to scare monger, it is i warning a friend about a decision that will affect the rest of their lives and the lives of their children. >> david cameron talking about the illusionary dreams of his scottish independence. his second speech in a week. the labor opposition will be in scotland and will be talking about whole voting for no, change will come.

alex salmond, on the other side, said a yes vote is the only way to get rid of a tory government and salmond saying the next time , itron goes to scotland will be followed a yes vote. argument, his political mortality. you are voting against the tory government, he is making it clear, we may not be here in a few years a you have to think about the long-term. .> the newspapers feature pieces around recollections from scott's of margaret thatcher that's looms large over this referendum. that is partly behind the tory government's decision not to stay away. the last couple of

weeks, we have seen. >> what else will be turned on its head? the bond market. bloomberg has done surveys with economists. it is interesting what they think will happen to the guilt 28 percent ofsome the respondents said that 10 year yield could rise to between and 3%. you lost a country that represents 9% of output. that is the first worry. has threatenedd to not pay his share of the debt market. if all of it happens, our share of debt to gdp would arise but would it mean the bank of england would hold off raising interest rate? you might see an initial spur, a rise in yield ball once it

settles and investors think it could change, because of the yes vote -- >> at the beginning of the year, markets are factoring in february. things have moved on. interesting about the cost of borrowing. the insurance companies are committed to scotland but they said it will almost certainly go up. the cost of funding important infrastructure to cover the increased risk of being a smaller country. we want monitored commentary around this. and be as on twitter part of the conversation and tell us what you think and regards to scotland and "countdown" as well. there is mine. the big news from publicists. y will stand down 12016 accounts are approved.

they said he will -- most of the details rocked by the inability to close. this megamerger and that did not happen and since then many people have been asking about the future of management and essays on mark levy will not to be part of it. he has been with a company for a long, long time. he has been there a long time. how much theu shares have moved within his tenure. the news just crossing the bloomberg terminal from publicis , suffrage advertising company. they did not manage to merge their operations with on the core. mr. levy will stand down when the 2016 accounts are done. >> the latest on travel. pilots have counseled a strike today. the german airliner will resume

talks with the union. toy do you once striking remain as an option. the air france strike is going ahead. 60% of the pilots will not fly because of the planet to pay the pilots at a discount. ari, a better day for anyone who has traveling. that strike is not happening anymore. some pain for travelers in europe still. ofyou are breathing a sigh relief but if you are flying with air france, you might be looking for an alternative. from air france, 600 thousand text messages worse than two passengers letting them know what was happening. it's looks like it will be worse than yesterday. it might be going on on tone next week. very costly for them.

-- it might be going on until next week. it is terrible hopeless city. >> are people opting for alternatives? person said there is an increase in bookings and searches on another website and if you are not flying with air france, fly with us. is a bit of irony in the situation. unit to develop a low-cost to compete a different ryan in a. >> it is almost strange that we are seeing the aviation scene and seeing the incumbents battling against the law cost airline. 20has been going on for years now at least. still does not show any signs of easily resolving it so. some pilots' arguments. >> absolutely.

these different carriers is trying to deal with a situation in a different way. is managing this a little bit more successfully. is very competitive with ryanair. looks like they are trying different ways to review it. i do not think any of them had an idea of how dramatic the environment would be. >> kari, thank you. e, the scottish play for investors. we will talk to a wells cargo capital manager on how to navigate risk in the event of an independent scotland. ♪

>> two days to go until the scottish independence a vote. david cameron has made his second trip to scotland in a week. he is warning the electorate should not underestimate the risks that would come with independents. but independence leader

outlook's salmond -- alex asmond has dismissed cameron desperate. he said the next time that theron comes will be after yes vote. the international perspective with a chief investor with a from fargo who joins us paris. a good morning to you. thank you for joining us. if were the implications see a yes of vote on thursday? it would bethink good for the markets. i would expect the british pound would go down and the markets would go down in england and the eu and i think the u.s. or would do better in the short term. i do not think it is good for the markets in the short-term and there will be a great amount

of uncertainty until the deals are done. >> from an international investor's perspective, what is about the developments in scotland that has significance? the decisions around the currency or implications it could have for other separatists movements? give us an idea of how investors are looking at it. things.ple of you have to divide up the debt between scotland and the u.k. which will be a very difficult process. you have to worry about the relocation of nuclear submarines which are based in scotland and have to worry about to the independence movement in the catalonia and other regions in europe. it brings into question more and more of the idea of how united all of the different parts of europe are. given the sovereign debt crisis we have experience and the markets does not like uncertainty. >> kir have you changed your

assessmentk, whether equities, of thethe currency ahead vote on thursday or we you wait until afterwards? >> icing right now you would probably avoid a down. there's been a hedging of the currency going on. longer term, it will stabilize and the fundamentals. -- >> icing right now you will probably avoid them. and in the u.s., a fair amount of hedging. >> away from scotland, the is meeting this week and markets expecting announcements around tapering perhaps from the fed. what are you expecting to hear and what is your assessment? i think the think you want to look at it is in the dodd program. i do not anticipate any increase

in interest rates on until sometime next year and that is pretty much consensus. in terms of inflation which would cause increases, it is created by wage pressure and energy and commodity. neither wage pressure increases were energy cost commodities in the u.s. is stabilizing or going down. because of those things, i do not see any fundamental push for inflation which will delay the fed raising interest rate well into 2015. >> have we seen the lows when it comes to yield and the u.s. bond market for now? the low recently was 233 and now 257. is that it? is it as good as it will get with the expectations of being pushed closer? >> yes. our rates will continue to go up.

process, be a gradual but i do not think it is any question that rates will move up end oflly with the quantitative easing and more supplies coming to the market. and the expectation that the dollar will continue to increase especially with the issues in europe and i would expect it would arise. >> you talk about issues and europe, what is your assessment of the europe right now? part of the reason you are in paris is to expand your business. of inflation and wickedness we have seen and the eurozone. >> there's a lot of interest in real assets in terms of fundamental infrastructure. given the turmoil and depending on what happens with the vote, if there is a decline in equities, i think it is a great buying opportunity.

fundamentally, europe is recovering albeit slowly and there will be great opportunities especially in the yield and value sectors. >> what about the european bond markets? you have thought hard about what mario draghi did a week or so ago. is there further value within a doll market or have we seen the lows there as well? within the last couple weeks, we did a chart and it has not fallen that much in a couple of years. >> it is the biggest bond rally across the world i have seen in my 30 year experience. both in the u.s. and europe, bonds would increase. much of is the central-bank reaction. o'reilly we have seen the last two years and it has come to an end. >> thank you for joining us today.

fromt wells fargo, live paris. >> tech is the new fashion according to burberry's ceo mr. bailey. he said the two are indistinguishable. we will have more from paris fashion week. ♪

>> "welcome to countdown." i am markedwards. >>

barton. >> burberry. event the first hosted since mr. bailey took over. he spoke with us. >> our company can not live in a little siloed world. technology is hugely important just as it music and craftsmanship. curious as an organization and making sure you are part of things happening in making sure you play and you build partnerships with a long-standing one. sometimes that can be with the crafts people or technology companies or musicians. >> caroline is here to talk about burberry. said enough to take the risk and experiment and experiment with twitter is up if

you are in the fashion show, you can be following burberry on twitter online and bury right right in -- buy there and right then and you polish.y nail he kept talking about music. they had a live musician. he is trying to team together delicacy. all about butterflies and nature. catwalk.hat is on the here's trying to be commercial and think of the investors. shareholders, a majority voted against the 20 million pound pay package. put's rebellion undoubtedly christopher bailey under pressure. being in the front row. the face of the new fragrance. it is not just burberry doing that. facebook inram and bringing collections to the social catwalk to facebook

before even showing on the runway. modern waysg new, of using social media to sell a product. >> thank you very much. >> over 5000 jobs are on the line. that is next. ♪

>> "welcome to countdown." i am mark barton. your fx check. sterling against the dollar. it matters. it israel event. down. it is down by 2%. it is relevant. before yesterday, sterling had risen to 44 consecutive days. the low was last monday. it has crept up and since then since rising to the 16 year high in july. a big event today.

consumer price data should show a year on year rise. a slight the klein on the previous one point 6% figure. does a mean that the fed has a reason to keep rates? will they give more clues on where they will raise interest rates and the big one is on thursday, the scottish referendum of vote. look at sterling. it is a yes say if of votes, it could fall as much as 5%. >> prime minister david cameron made his final plea to scotland voters are urging them to not leave the u.k. he promised change and promise unprecedented powers if they voted no. said he isd "scaremongering." thousandshe border, gathered in support of scotland to stay with the union and they

were joined by celebrities. one said the united kingdom was one of the greatest ideas ever invented for the modern age and called on scottish voters to say no to independence. ukraine's cease-fire is under threat. has beenof done ask shelled more -- donetsk has been shelled more than 40 times in the past 24 hours killing 20 male -- 20 people. founder isionaire speaking to us right now. he is speaking out against the ruthless mobile phone networks alleging they force the company into 2006 causing 2000 jobs. john caldwell. hi, john. thank you for joining us. just explain to us what went inng with the phones 4u

recent times? is a very4u successful and still competitive operating really well as a business. but we had or they had -- >> it is still a we. >> i have nothing to do with it now. it was through network suppliers e company pulled out. that was the real worrying time. a crucial supplier. vodafone probably got it a few days ago. it just left the unit completely le position and i thought it was almost impossible for it to survive. i did not think the eu would terminate their contract completely. how did all of this come back so quickly? >> what is the answer?

>> collusion. collusion to take competition and for the network to remove a serious competitive edge that was keeping consumer prices -- >> collusion between the three? >> do they feel like they do not need another competitor? is that a reason they made the choice? >> they are able to make of the choice. they believe that. how did a come about that all of a sudden within the space of six months, all six networks came to the same decision? the anti-competitive practice. it has gone on behind closed door in a collusion every way. it was the ruthless determination of phones 4u. --is weidman we still need >> why do we still need someone to cell phones, do i still need

presence?eet >> some ado and others do not. they have a right to exist. but, that is the sort of real difficult part. did they deserve to have the rug pulled out from three networks within six months terminally? no, they didn't. these networks were part of phones 4u. i dealt with them endlessly. how does a partner come to do that? no, no, they will be terrified of losing value. it, vodafone thought about where will they get their connections from? they would lose it all. that is what i think is collusionary. i think it is possibly a deal behind closed doors and said do not worry about the marketshare

going from one to another and will all pull together to be neutral and the profitability will again. >> we will try and ask them. we will see. said they aretor trying to find a buyer or someone who will sell through phones 4u. is it it down to the wire? >> unfortunately. the day they terminated the contract was [indiscernible] 4u isly chance for phones some regulatory body would bring the networks back to the table. >> is it likely? >> no. it is almost impossible. i'm trying to stir up public opinion and maybe get the government involved. >> no one is going to buy it? >> there is nothing to buy. people buy the shops. buy the shopsl

are people who are perpetrating is a disaster which will have to hear their view. >> talk scotland. >> from my pure perspective, there are so many elves in why would we want to choose if scotland is stays or goes? yes, it is a democracy. to me, it is much ado about nothing. it scottish people who want will disagree of courts. there are so many things in the world we have to fight for. there are so many ills and we are worried if scotland is part of the u.k. or not. patriotic and i love the u.k. is way. i think of myself as british. evolve.hate to see it >> you made a shakespearean reference. it sums up a lot.

you talked about what you are doing at the moment. reading back on where you started. you took nine months to sell your first of phones. fordid not inc. in return the 1980's and business with the iphone 6. business,got into the it was 26 phones in eight months. that is what it would've taken me. i never could've seen the industry as where it is today but i knew it would be a success. an eight year old nobody had a telephone. when i was 35 years old, nobody had a mobile phone. i did not see quite as the boom. >> what you up to these days? >> a lot of business. i do a lot a charitable work. one that helps children all over the u.k.

i find today hugely rewarding. a lot of my work goes into philanthropic games. i joined bill gates giving a pledge which is a pledge to give 50% of your wolf away when you die. -- of your wolf away when you when you your wealth die. >> what is the most demanding industry to start a business within? i didn't know if it is an absolute open question. excitedbusinesses are because they are on a global basis. you have nearly 7 billion customers potentially. the health club business, and emerging-market they're i'm excited about. a 60 year plan. 50 years of growth in emerging markets growing more disposable

income. people take their health more seriously and take held more since late as far as to go to the health club. >> john, thank you for joining us. cofounder of phones 4u. itsan netflix replay american success in europe? we take a look at the challenges that you are presents. ♪

>> i am looking at the difference between the u.s. 10 year treasury yield and the u.k. guild yield. this the spread between the two. the yield difference. the chart charting the spread. -- wed line right now have a plus figure. sorry. the 10 year yield in the u.k. is below. period below is when it was above the u.s. treasury. what is interesting, you see the

arrow? that was back in june. it was 16 basis points above at the 10 year treasury. since then, it has been narrowing. the big event took place just ago oneine or 10 days the latest poll shows there is a yes of vote, the yes vote was ahead in the scottish referendum. that has pushed the difference in yields to a positive or the u.s. 10 year treasury. this is fascinating. that yieldime difference which was eight at to be and awful last week since august of 2013. does a change of the whole debate when it comes to the bank of england? the bank of england [indiscernible] it will put offer raising interest rates? the federal reserve it meets today for the first day of a two-day meeting.

if they give an indication of a u.s. interest rates will arise, it could possibly widen the spread. the difference but when they you as 10 year and u.k. 10 year. last week, it was eight basis points. the u.s. in yield became a greater than the u.k. yield and it happened when the new vote poll was released sunday a week or so ago. definitely a spread chart to keep an eye on. >> netflix is spreading into your. the company faces regulatory hurdles and competition from local media companies will stop hans nichols joins us from the land with a more. >> it is finally here. reed hastings held an event in paris. thelix is coming to southern part of the continental. 80 million broadband households for the it will be friends,

eligible, luxembourg, and of course, germany. friends,l be luxembourg, and of course, germany. they have to see how to get into people's homes and get them to watch it. here is mr. reed hastings. >> it will be challenging to be profitable. we have a lot of confit -- content. we keep getting more content. if ago 5-10 years, we should be profitable. >> it is a company of a market cap of $30 billion which compares it to companies like viacom and cbs. more growth. they have had a remarkable story in the states. they have 50 million subscribers in 40 states. 3/4 are in north america. the goal is to get to 90 million viewers from 60 million.

they want to grow. when you look at some of their goals, they want 80% of the revenue outside of the u.s. and right now, clearly, they are not there. some analysts are saying they will get 20%. they have to figure out some of the typos. ares like "house of cards" owned by a company called skied which linda. there's also licensing in france. -- called skied deutsche. deutsche. they see a growth opportunity. >> hans, will you be able to watch "house of cards" in germany? >> only on sky deutsche lend or as we discussed earlier and we are not recommending anybody do anything illegal, you can hide it where you are with a virtual private network a you can say you are in phoenix, arizona and

say you are in the u.s. i am not going to recommend it or admit i do it myself. >> absolutely not, hans nichols. to "thelooking for roosevelts." that is what he plugged earlier, isn't it that's right? >> ken burns, the great he has donen, things on baseball. i will say you are the dvd box set. -- baseball is a. to cricket. baseball is superior to cricket. >> ooohh. your line dropped because it used as something about cricket. >> the futures, dax, cac, a little lower. after the break, what will drive

the trading day with david. ♪

>> "welcome to countdown." i am mark barton. >> i am anna edwards. for a look ahead, david. good morning. it is going to be a very busy week for everybody watching what

is going on with the scottish a vote for stump what is your thoughts? most important things to say this is not by any stretch of the imagination a dialogue or conversation about economic logic. it is economic logic which is against hysterical nationalism and i have to say -- >> passion? >> if you like. salmond has delivered. i do not think anybody understands the run up debts ramification of a yes vote because they do not want to. it will be an absolute tragedy to the united kingdom if they did not win. the u.k. vote would become substantially smaller and we were not have the remaining clout in they international realm and will give many countries ideas.

cataloniaimagine getting independence? if you have the spanish bonds, say cheerio because they will not stay. and problems with other countries and it is a travesty. i hope it will get a no vote. >> market reaction has been debated that the 10 year guild could arise by 60 basis points. equity could fall. what is your scenario? what are you thinking? been made.ready all that is happened in the past few days, russian sanctions my united states, china's economy, scottish independence -- who cares? we saw the reaction to strong last week correcting toward the en of the week. we need to understandd 2 things. nothing will happen for 18 months. it is a question of what i thing

will be hard to, deeply unpleasant negotiations. and i have no reason to doubt mr. cameron, osborne, miliband, and the union say what they mean that there is no sterling, no regulation, and no axes to the guild market and that is one scotland's problems start. >> someone comes out of this badly, don't they? dan bennett pledge it -- there have been pledges on both a size that cannot stack up. the was mr. government has been saying -- the westminster government has been saying that cannot use of the pound and the other so we will use of the pound. someone comes out not looking good. we'reall depends on what been told, the absolute truth and there is no negotiation. you need to look at it from the scottish perspective as well. feel andfeel the way i

why do million of commentators feel this way? millionion against 58 people. the tax has to go up because they have to pay for a huge country. it could distort glass go. why? if the focus is on oil which is what alex salmond told us, we has spent 25 years to build glasgow and to a wonderful city. to the northeast, you can make that plays a ghost town. >> for any viewers, they might say why are they in london talk about what is going on. i will be there in scotland today for the next three days. passionately. i want them to stay, but if they do not state, we have to have these contingency plans. it is really, really dangerous ears arehe deaf

worried. >> "on the move" is next. they will have the latest stock movements in burberry. ♪

>> welcome to "on the move." u.k. inflation is new today. -- do today. joining me is caroline hyde and on nichols. toare inching closer decision day. ask david cameron made his that can trip to scotland in just a week. he says there will only be

painful divorce if rockland votes to go the same way. >> we are focusing on technology. we spoke to the creative director. again extolling the withes of experimenting twitter. once again, the stock rice is likely to take a pounding. is likely to take a pounding. >> we are talking netflix. it is finally coming to germany.