>> decision day. we will take you. the journey begins. announcing the result of the and and lending program hour. we speak to weber about the ucb and the fed. -- ecb and the fed. >> this is the paul's.

?hat else do we have coming up we have the moment of truth. how high will the share price the and the record-setting ipo. jaguar.ew old the classic car is making a comeback. i did not think it went away. let's go to our story. it opened a little while ago. and edwards is here and following the story. walk us through how the day will unfold. >> thanks. leaders of of the the scottish national party this morning. they have been voting this morning and we expect a vote around now. campaign,ter together the no campaign that wants to is supposed tor

in half an hour pasta time. the polls opened two hours ago and stay open until 10:00 in the evening. there are differing accounts around the country and all of the results have been sent to the chief officer at the highland center outside of edinburgh. she calculates the numbers. 4.3 million people have voted. from the country or the commonwealth. a thousand applied to postal votes. be a simple majority system. either way, the majority system

is how this is going to work all somewhere around 2:00 in the morning, we could hear from some of the smaller counting stations. they will be the first to declare. they in gaelic before english. schools, libraries, community centers. members of the community are descending on all of the places. fairly unusual locations. 52 people are registered in the caravan. there are very small constituencies, as you can imagine. hotels are offering cocktails. column.

we will keep you up to speed with what happens here. >> there is a word for the weather. what is it? that it is misty and drizzly. in the english language, we have many words for rain. in gaelic, there are a few. they say, remember it. it is appropriate today. >> it seems to be. >> eight misty and foggy edinburgh. crannyake you to manus who has perspective from the ofirman on a wide range topics, including the ecb. it is a subject close to his heart.

>> i think that weber caused a lot -- covered a lot of ground and that they issue to deal with was lit a gracious -- litigation risks. when it comes to an issue of trust, governments need to do more in institutions and individuals. matters of theo european central bank, he says that they need to step up to the plate to make the asset-backed security plan work effectively. they are a man who know a thing or two about it. >> i think they have some stability risks and the central bank has to be careful in how they use their balance sheet. there is a broad set of assets in the markets and it distorts all prices in the market.

they buy in a targeted fashion. since credit risk is being transferred from private banks, that is a rotation. mario is making clear to governments and what germany and france have been debating is isther any potential loss backed by governments or a government errant tee. >> is there a case that you would say that we should look at fiscal latitude? maybe they are on their back? is there a case of fiscal latitude? >> you only have fiscal latitude if you are in a favorable starting position. you are focusing on fiscal expansion rather than consolidation. it is not the right approach. trust of people

europe.e into a sound we need less fiscal expansion. europe will not come back to growth wake -- with quick fixes. it is not going to work. they have to do the hard work and the reforms. they will regain growth. >> to stimulant the growth, it will be short-lived and not sustainable. it would be another bump in the development. i do not think it is the right thing to do. >> we managed to pack everything and. they made it clear that governments are reversed. as you know, the irish are something different and i got the feeling that they were prepared to assume the risk. that is not the case in the ecb.

the program that has been put forward or that we know little of effective? i love the line. one.is in an earlier of course, we were reminded how quickly we forget what it means to have a volatile currency market. >> yes, the followers of the pound remember what the volatility looks like. you talk about the swiss. part of this is well done. cannot just have passes and

fails. you need to have a robust mechanism in place. are the elephant in the room. they are not being stress tested enough. we covered a long range of issues. there is a wonderful golf course. i am off to do it. honestly, i believe you. >> manus cranny. let's get back to our top stories. there is a plan to shed the plastic division. let's get more on why they are doing it. we are joined from berlin. in terms of this division, how much could be worth.

it is what the analysts put the unit at. iss is a signal that there going to be a focus on pharmaceuticals and life sciences. bought 14at they billion euros. they are focusing and concentrating on another. some seedicals and businesses. this has been approved and needs to go to the supervisory board. whened to get a date from the unit is. you talk to the company about the division and they talk about the gas. things are cheaper in the united states. why are they selling it.

that the reason? >> we do not know. they want to be streamlined. when you look at what the , i'm notusiness does entirely convinced i know what that means. energy andlot of there is a huge debate about how much the energy is going to cost in the future. that could be one of the motivating factors. >> excellent. well done. getting into chemistry now. this is the old science project. thank you very much. hans nichols. ecb announced their results. we will get some perspective on do that in just a moment.

>> good morning. welcome back. you are watching the polls stop we have been speaking to the chairman. on thet heard him subject close to his heart. manis wasn't just going to let the conversation ends there. this is what he had to say.

>> this talk about rate hikes and there are two bottles they talk about. they don't have a fast overtime and others say, let's just wait a little bit longer. they are willing to go faster. that is the cost to debate between beast to bed adds twortainty -- between these and adds uncertainty. >> does the fed go to early? that it faces a danger of going too late. i think the recovery is more firmly established than many investors and the market think at the moment. the risk for prices to come up above the target rather than below target is higher. my preference would be earlier moves. i am not a policy maker. for me, the important issue is monetary policy in the united

states. it is a half year or what you're ear out.ne of your what is the impact on that competitiveness? where i see additional impact of u.s. monetary policy. out whatried to figure the things are behind him. if anybody has an idea, let me know. let's talk more about this. let's talk a little bit about this. how do i relate the pressure that we see in the bond market with what we heard last night? bits it getting a little better right now? >> i am not sure that is the case. it is interesting. i don't think disappointed but

he too strong a word. people would take away. they did not. the interesting point was that they made clear that the tapering finishes being tapered and they will reinvest. senses, that is a bullish statement. when you finish adding money and, the next step is to stop reinvesting. the fact that they are not doing that and have not changed is -- dovish. we are going to wait and see what stanley fischer has to do. i think they took a pass on this one and they said that this is not the month they want to get busy on saying what they are doing. they have given forward guidance

and they are going to focus on reserves. .therwise, it was a bit >> it was. should you be buying bonds? there was a big buyer in the market. it means that there is still a big buyer in the market. on boarda central bank with the idea that it was better to go later than early. there are issues surrounding the economy. strikes me as dovish. the outcome is a wish for bonds. is that the right trade? should we think about the market being where it was? >> look at the data nuc china and japan back a little bit. i think the bond market does its own thing.

the flows in and out are moving of their own accord and we have s between stocks and bonds that are more relevant. >> ok. targeted at smaller and medium-sized companies. you have to wonder how successful this is going to be. the banks are in charge. they get to decide the balance sheet because they are the ones bidding for it. like the ecb is out there and determining their fate. they do not have that much demand for credit. the ecb is going to struggle to get that to work. in terms of how significant today is, put it in context for me. >> you hit the nail on the head.

essentially, the banks do not want this. to say to someone that they will give them free money, affectively. for years and they still do not want it. imagine most of the big banks turning out. the reality is that the assets are coming up. why do you want to take a whole bunch of money and justify it about three or four weeks later? why are you doing this? chapter and verse. most will say, our rates going to change? no. why do it now? you saw the expansion in spain and the italian and spanish banks are going to take a low percentage.

so, we will get 100 to 120 million. that it is a bit of a wash and we will worry about that next time. if it is less, i think the market is worried because it means they have to start getting serious. you know the germans do not want that. >> is it too early to panic? do they wait until december? banku say, time is on the side. they can do it later. they can wait until some of the risks have cleared out and then take care of it. >> you mentioned that they are not in control of their destiny. lend.o not want to not a supply story.

this is a demand story. >> what can he do to drive demand? >> he is trying his best and the banks do not to the opportunity to take advantage of the free money. what more can you say about the demand story? >> we will leave it on that note. we have to take a break. buffett.come, warren mike bloomberg and the michigan governor. .hat is coming live that is coming later on bloomberg tv and will be watch -- worth watching. make sure that you do.

>> welcome back to the paul's. the markets and investors have a lot to income about right now. >> you have seen the voting rotation and it is expected. pretty complex. for the market, it does not mean anything. the dax is punching higher. of a rallylittle bit across the euro zone and a dovish interpretation of the fed. a hawkish interpretation of the fed.

you look ater and the median estimates. what does it mean? look at they one official looking for the rates to stay near zero and the other looking for rates to be out. agreementsion is no at the federal reserve right now. this is a big one. the swiss national bank. they have come out with aggressive language today. action is more important than words. they are not buying it. >> they are not. happening? interesting stuff. still to come, the biggest changes we need to know about. it is an evolution not a revolution. is it worth the upgrade? we will find out. you want to join the conversation, you can do so on twitter. i will see you in a moment.

>> good morning. welcome back. we are here in london and these are the top headlines. to keep with the pledge the interest rates low for a considerable amount of time. it could take until the end of the decade to get the balance sheets back to normal levels. resultsl announce the of the targeted program in less than an hour. it is among a package of will watch.t 100 toer a ranges from

300 euros. in theis underway independence referendum. andould see them breakaway the union has lasted more than three centuries. >> let's go to anna edwards and talk about what the story is in scotland. the weather is not particularly pretty. .alk us through it today >> thanks. they are voting on the question on whether to become an independent country or become part of the united kingdom. we have seen people registered voted. and 800,000 a simple majority is the way that it was.

that is the voting system applied here. if you are wondering how may people will turn up, there are interesting statistics about how many people turned out in various other elections. percentage ofe a people turn out that was higher, it would have to match new zealand. if it is higher than a referendum, when voting, they have to match the numbers in uebec.back -- q the record in any general election was in 1950 in the u.k.. in terms of whether we would hear anything, 2:00 a.m.. -- a.m. they should announce.

the final results will come around breakfast. the chief operating officer will from the royal highland center. there are leaders from various parties voting at the polls. fact you. >> thank you very. there is a significant delay inside of our live shot. i will not read anything into that. the roadshow is over. the journey is just beginning in some ways. prices their ipo and it is one of the biggest in history. there are all kinds of issues surrounding it. how big will it be? pitfalls and the

then, corporate governance. what are people focusing on? >> the fact that people want to buy it and they are voicing concerns. of theevery single one investor meetings is part of the roadshow. the corporate governance is intriguing because of the variable interest entity that it is. this is not new. it focuses on what they are getting into and this is a mechanism that chinese companies used to list and the united states and china. it restricts foreign investment. shareholders are part of the process and will not own the underlying assets of the

company. they have a claim they want to make against the assets, they could run into problems. this is something that has been going on since 2000 and stop the other one is more contemporary. that is the fact that you have 30 directors who have unilateral control to choose the majority of the people and they are going to have control of the company. they are going to have power. in 2011, there was a case where they transferred control and that was a company controlled by jack. way to work out the differences and it underscored the fact that if you do not like what the directors and jack want to do, there is not a whole lot to do about it.

>> the opportunity is fake. is everybody convinced that they should not worry about this? >> they are. not all. that is a big statement. majority are trying to get allocations and will not in europe and less in asia. this is a u.s. listing. on governance, they are talking about controlling stakeholders with 90%. everybody understands they have a lock. the founder is going to have 7.8% of the equity. all of the directors make up the have 13.1%.and they

you have a group of people with less than 21% equity calling the shots. >> there are instances of this it was notought purely limited to chinese companies. this is an extreme example, some would say. we are wrapping it up. we will stay with tech. ios. has released a new that was a design change was not about function. this one is. go through the biggest changes to the operating system. >> it is not a break with the past like seven. introduceding system

a new design. the changes are functional and less aesthetic. here are five. in the past, you got a notification that someone e-mailed or texted. you had to read the alert and then open the app. in the new one, you can respond to a notification within the notification. it works well and alas you to get back to people quickly without interrupting whatever you were doing. like other operating systems like android and blackberry. keyboard that protects it is good in theory. i wish suggestions would come up faster. -- you limit the

visible screen. you can always turn it off. voicen now record your and said it to someone. you may say, isn't that what a phone is? it makes a lot of sense? >> i will be there in five minutes. >> i will be there in five minutes. >> for the kind of phone calls i make, this replaces a lot of them. app has features that are nice. you can perform several functions without having to open a message. more importantly, apple finally seems to have gotten surfing right. after using the gmail app because apple is so lousy, the new features and search may have be coming back.

in,our device is plugged you can activate it with your voice. say, hey. the competitor had this and it's not surprising that they would include it. this is useful in the car. they sound familiar, we have seen them on competing devices. apple is not shy at refining it and including it in their own devices. of, should istion upgrade? remember the rule. the first version has bugs and apple always pushes out updates in the coming weeks to iron out the kinks. >> interesting stuff. we will take a break. the roadshow rolls into london. this could mean more trouble ahead for the ruling party and

the country. we'll have details on that when we return.

>> 43 minutes past the hour. welcome back. let's go to greece. a subject we used to spend a lot of time talking about. it has gone quiet. suggests the

opposition party is ahead of the prime minister crossbar to. this will be interesting heading stop how doesill this all feature in the business environment. let's talk. he is the chief executive of the greek real estate company. good morning to you. >> good morning to you. >> this is the ninth roadshow. i'm interested in your views of the event. it used to dominate the headlines. to convincee easier people to invest in greece? are they beginning to pay attention to the fact that the opposition party may write down all of the debt and is gaining traction? greece goes through certain cycles. 2006-2008.ough

i was here and then, we went through 4-5 years. now, we are showing from many many great companies. it is generated and you think about the yields that you can find in greece that are 4-5-6 times higher than you find in advance economies. countriesnk about going through places like , it is muchspain more attractive then the candidates i just mentioned. >> the issue is that they have always said that they would like to write down significant chunks of the debt. a lot of that is from

governments and would not affect the private sector. nonetheless, the message it ands, the yields are high there is concerns about credit risks. are you getting a whiff of that? whether it is positive or negative, it creates some noise. after all these years of crisis, there is risk. there are messages translated in a certain way. act.e end, they will in my opinion, there may be some delays. we will find the pace. the pace is in a positive direction. >> one of the key things in the program from back in 2001 was closed ever since. a huge piece every was state.

it is twice the size of the park and i think you guys are the only bit left to make it happen. how close are you to making it happen? and we wantclared to defend. this is a huge project. they will go to 80 billion euros it for investments and how close are we? i would hope that things would move in athens the project and greece. it is huge. i hope it is going to move faster than it has moved in the last six months. i will tell you that it is a huge project and, along with us are too big combinations from

china. shareholder put a lot of energy in this to greece. it is a big opportunity and we should not miss it. >> what do i see the first rumble over the hill for this project? when you start to break ground? >> i want to hope that this is happening at the beginning of 2006. we want to move faster. >> 2016. >> 2016. wishful thinking, maybe. us, it would be tomorrow. administration is acting in a way that puts greece on the map. >> doesn't this concern? this is what people worry about.

it is an infinitely long span of time. it is a catalyst that gets lost. this is a poster child for what they can do and a sign of how much progress needs to be made. about thearguing things surrounding this project. it is a mixed message. >> it is. let's be frank about it. andproblem is executions the way they move. they do not move in the way they would. thehe same time, opportunities are there because of this. we do not take advantage of the opportunities and that is why it is attractive. i hope that come over the next two or three years, along with they will have,

a view. >> yes. >> exactly right. >> it has been a pleasure speaking with you. ceo of development. we will take a break and be back.

>> good morning.

welcome back. we are beginning a momentum in the financial services sector to on full 10 green bonds cap -- financial sector. 10 green bonds catch on? good morning. in terms of the scalable we're talking about, how is this and what is the opportunity? the sectors talk about one 100th of the bonds and it is very small. it is not to say it is not growing. it has tripled. befores one way to go they have any great impact in the market and that is why it is really important. you think about responsible aboutment and they talk

of the fixed9% income market and how you ensure that you have responsible investment taking place in that part of the market. wantingit is about signatories to think about responsible investment across all of their asset classes. traditionally, people started with responsible investment and they cannot do that with their bonds. there is more research around the history in the equity space. because fixed income is such a funds and of pension portfolios, they think about how they do this in a fixed income space.

binary, isn't it? can you exercise power? you can exercise power. as long as people are looking for yield, you have to think about the financial things. you need to think about the environmental risk and the social risk. you need to think of the governor risk. i think a lot of people thought that bonds were going to provide the rest. equities, you can have a voice and go to the meetings. in bonds, it is just a suggestion. i will not invest in this company. can it get more refined? what we think that. engaging intories

companies and issuers. it can be done. are case studies about what the investors are doing and we want to see more. the investors want to see more. >> do you think we will see a focus on equities? >> for signatories, it is an interest. there is a lot of time put in. how you do responsible investment. it will drive growth. >> thank you very much indeed. responsible investment. fixed income. keep in it -- keep an eye on it. what are we talking about? andecb getting underway andrew will talk about that story. we will talk about the ipo. and wet is coming up

will see you in a moment.

>> decision day. deciding whether to stay. we take you live. the journey begins. they announced the results of the targeting lending program shortly. .eeping the low rates we will speak about both of the central banks. good morning to our viewers. good evening to those in asia. i am guy johnson and this is the

polls. we are live and we are here in london. it is the moment of truth. just how high will the surest price go in the ipo? we will find out later. all jaguar. why the classic car is making a comeback. get to the top story. the scottish referendum on independence. kohl's across the country opened a while ago. how will the day on full? >> thank you. the campaign that wants to keep the u.k. together and the scottish nationalists have been voting already this morning and casting ballots. they are joining thousands and millions and casting their votes today. people --n scottish

or residence, i should say, have registered to vote. of 16,are under the age you are able to vote in the referendum. people haveousand already voted before today because they registered for postal votes. a simple majority is the way this works. we expect the first reports of the results to come through tomorrow and they will come from some of these smaller communities in scotland. the council should be the first to report their numbers. those numbers will keep coming through the morning. that aroundting 5:00 in the morning, we will hear from some the biggest. and, some of the final places to report will come around 6:00. a number of locations have been .ommandeered for the use

the polling stations have been set up across scotland and the communities have been roped in. the odd caravan and church. you, if youling like this kind of thing, you can have a cocktail while you are voting. some of the bars are offering that service. thehat is not for you, prayers are being offered. a busy day of voting. some voting is taking place all over scotland and we will bring you those details as they break tomorrow. back to you. >> thank you very much, indeed. i wonder what kind of cocktail would go better with an independent vote. we will talk about that tomorrow. fromdwards joins us edinburgh.

the central bank announces the first results of the lending program. it is part of the effort to get credit growth starting to happen again. particular for small and medium-sized companies. jonathan ferro joins us with more. how much money are we expecting the banks to take? there are issues around this. you have stress tests and issues of whether or not there is enough demands that justify borrowing the money. the list goes on. >> there is a huge range and we look at the median. the range is huge and the number is from thin air. nobody knows how much. you're talking about a pickup today against the payment. if you want the balance sheet to

go higher, the impact into the repayment could be minimal. how big is the take-home today? what does it get used for? we will not find that out for a while. the impact on the real economy may be minimum. for the realmoney economy. they have to repay it. banks objective here is not lending money to small-and-medium-sized companies. that is whether or not they want to borrow money. rejectedess, this is and they convince banks to start lending money to companies. >> here is the thing. andave seen demand be week --

>> to be polite. >> he thought it would pick up. all of these banks are raising capital. to be aot want this credit crunch. you want to make sure there was a credit supply their. demand for the credit might not be there. there are so many moving parts. this number is not telling you the whole story. you have to put it against other things. the fact that there is another option and people think the takeout will be bigger. >> it could be as well as for the numbers. they may be easier to borrow in december. so, yeah. as you said. -- the market likes the rate. what does this mean for the other program? they may have to go bigger.

is small.r whether it matters in isolation or not, the market will move on it because they wonder what happens down the road. .> a small number >> i was speaking about that. >> i might be wrong. >> we will find out. we will find out shortly. on the ecb and talk about where it goes. a great voice to listen to when you talk about the ecb is the chairman of ubs. why? because he could have been sitting in the chair. down him to tracked get a view of where we go next. let's listen to what he had to say. >> i think europe has stability risks and the central bank has to be careful on how they use

their balance sheet. the central bank buys a broad set of assets and distorts all prices in the market in favor of prices for products that they buy in a targeted fashion. since credit risk is being deferred, that is a flirtation of risk. what is being made clear to governments and what has been debated is whether any potential are backed bycies government guarantee. >> is there a case of fiscal latitude? i do not think that there is. you only have it in a favorable starting position. the attitude at the moment is that governments are focusing on rather thansion consolidation. it is not the right approach. avernments need to establish

trust of corporations and the people of europe into a sound fiscal and monetary operation of europe. i do not see that. we need more expansion. europe will not come back to grow quickly. everybody is looking for adhesive to fix the issue. europe has to do the hard work and, as a result, they will regain growth. they stimulate growth without having the foundation and it would not be sustainable. it would be another bump in the development. i do not think it is right to do. >> that brings you to the final point. we all want quick fixes and growth. i get it. part of the reform and investigation is a quality review and we will hear about it in the next couple of months. are we hopeful?

should we be concerned about failure of institutions. i suppose it would give you a sense of an investigative job here. it is brutal. saying that what needs to be done is reestablishing trust in the balance sheet to have it capitalized. we have done that to establish ourselves. in the european context, they will take the role of the balance sheets and put the balance sheet out in october. the idea is to have a trust in forcing and augmenting exercise. that will be achieved. there are two problems. there are no solutions visible for banks that fail. haveew is that you have to the problem and not necessarily the solution that is

confidence-inspiring. to investors now, the market has moved beyond the major risk in bank balance sheet and credit risk. any of those. the market is it more -- the market is more focused on that and if you reassure the market about the risk related to the usual financials, that is not confidence-inspiring because of the elephant in the room that is not being stressed. >> weber, the chairman of ubs spoke to manus cranny. we are going to stay and talk about the ecb announcing the first outcome of the lending program. we will bring you the results and talk about the impact on the market. we will do a bit of analysis for

you. and does the number mean where does it take us. we will be back after the break.

>> welcome back. euro dollar is trading near highs. that on theit of back of a fed announcement. let's show you the deal and the announcement from earlier. you can see the reaction to it falling and not a lot of action.

we will see if that has to change. we are counting down to an announcement. and wehe expected range will wait and see how that number comes through. i am anticipating it. when will the number come out? what will that be? what are the implications? am trying toll, i figure out when the number comes. ae implications are that number will signal a need to move on and there is not demand for the liquidity. we are heading further down the road to qe. andget a big announcement there is a demand. i'm going to have my guest next

he is going to shave off his beard. it confuses all of us. what number do you expect? they go for the median. position involves a packet of matches and they should think about the collective whole. how much will be repaid. you need to bear that in mind with other asset purchases. you could anticipate that the lower the take of this is, the higher the asset purchase scheme needs to be. the history and restoring a sense that they had

something to do. when the euro zone crisis starts theome back little bit, deflation is going to be in spain and other areas. so, one of the countries where deflation is uncomfortable is spain. elsewhere, there are not too many problems in the stress test. it is not critical at this point. >> this was meant to be targeted. . this does not work well. we know that. the problem is that there is no demand for this stuff.

get demand for credit growing opposed to supply. >> you want to have the supply growth and we need to have more confidence that there is a long-term growing entity. we need to have more confidence that there is the structural reforms. this has the banks a andd in the medium-term they need to think about the building blocks. growth is not something that the government creates. it is critically -- created by entrepreneurs. >> he pushes liquidity and a system that has the confidence in europe to grow. are we doing this the wrong way? >> and there are some places.

things have proceeded well. there remain residual problems at the core. 1% this bit less than year and more than 1% for the eurozone. it looks poor compared to the u.s. and the u.k.. in the1990's, the growth europe area was not much faster. some of our expectations need to be managed to little bit. -- these are mature economies and the demographics are not so good, in terms of population growth and they should expect growth in the future. it might be a strong growth area. short-term, one has to be

realistic about what can be achieved. i agree that you do not just want to put additional stimulus in. when you think about the u.k., some of the schemes encourage for some of the banks and they have worked well. i don't see why they should work badly. that has to mean something. on whatt depends happens yesterday. that puts a lot of pressure to move to the earlier. a bigger scale asset purchase. >> he has tried to outsource that and the banks are not

interested. there is a way around that. >> there may be more than. that he would be in the 3 billion range. there was a notion of conservatism. so, going for 82, it was very low. they will be disappointed. withans that they do more asset purchases. >> separating those two issues buys andmarket securitize assets. it is not big enough. it gets the asset -- the market

moving. the securitize market is not big enough. what is the timeline? >> i think that if they moved to it, it will be a lot of additional pressure to do that. it is unlikely. tohink it is paradoxical wait until this point. he toughs it out without the disasters that one might have feared. having gotten through to this is inflationk it getting out of control in some countries. if you see it go towards 1% and

you saw it become more generalized with countries in deflation and we brought in extra countries, things would go ugly in the referendum in november. then, it may come onto the table. i would not expect them to move to that. i think they do that only reactively. the first thing they will try is get a better take in december for the auction and they will try to do everything they can on the side of asset purchases. enough. i am surprised about that. my conclusion from this is that he has run out of weapons. it is a difficult triggered a poll and it is going to be hard to get to the point on a

political point of view. he said that he made it crystal clear in the press conference. it comes to standard monetary policy and this is it. we look at the results of things improving. if the banks do not want to play, i wonder what else there is. >> i think he ran out of weapons by 2011 and that was part of the reason that people get nervous around then. and the whatluff ever it takes conversation. they were not able to do much. >> a great bluff. >> play the game well. >> i think the truth is that they ran out of anything other qe. a full-blown they have a reluctance that is towards aable to go full-blown one in the environment and they think the thing to do is to tough it out and keep the pressure on the

individual member states to engage in reforms in the longer-term. they do not have a reason to panic unless they go towards either an -- additional blow up of the crisis and that sort of thing. i think it is different. they better hope the stress tests do not exhibit too many problems. people were talking about it and saying that it would be desirable. confidence.tore i do not think they want to have any of that happening at this stage. that would be unfortunate. no weapons left. theyugh they -- although -- it is obviously embarrassing for them and i do not think they really need to do the package. except they have to say that they have something to do. the problem of firing all the

bullets in your gun is, when they are all gone and they do not work, you run out of things to do. germanstart to hear the getting nervous and mario draghi could prove to be a pivotal voice in the debate about whether or not. >> is there a scope for expansion? i don't think you will get the germans on board. the french claim they are going to do less austerity. look at that. it's not like the italians have any. what are we talking? >> you're right. >> ok. interesting conversation. fascinating results. the number is out from the ecb. today, we are talking to

warren buffett. michael bloomberg and the michigan governor. that is coming up.

>> good morning. you are watching "the pulse." live from london. i am guy johnson. scotland votes today on a referendum for independence from the u.k. a yes vote would see scotland end the union with the u.k. that has lasted for more than three centuries. into thes campaigned night to win undecided voters. the european central bank has announced the results of its first lending program. below estimates. mario draghi has a long way to ltro. meet t

sheetl boost the balance to 3 billion euros. that might be optimistic. the fed chair janet yellen says it could take be fed until the end of the decade to reduce its more than four chilean dollar -- it's more than four chilean itsar -- its moer th -- trillion balance sheet. >> 82.6. so many moving parts to this number. in isolation, what does it mean? does it mean there is not appetite for stimulus. and more targeted lending program. this is the reaction in the markets. not much move in fx, euro-dollar slid lower at 1.28.

82.6 billion euros, that is how much they are bank to lend to -- that is how much they're going to lend to these banks. it might wipe out the impact on the ecb's balance sheet. he wants to get that to 3 trillion euros. can you read too much into this? wait until december. we thought this was going to be below december's auction because we have the stress test and the aqr. december just got bigger. if the december take-up is not big, everybody is going to turn to mario draghi and say banks do not want your money, how are you going to boost the balance sheet? are you going to have to go down the qe route. .4%.uities, ftse 100 up by a nice rally on the dax at .9%. janet yellen did something incredible. she managed to get the dollar to rally in equities as well.

stocks see the brighter side of life at the fed, "considerable time." >> the powers of the federal reserve. "surveillance," tom keene joins us with a preview. >> a big day north of you. e go to anna edwards in edinburgh. a remarkable news flow off the fed meeting with markets moving. alibaba will price tonight to trade tomorrow. terrific value perspective from elli of gamco, the legendary value investor. front and center will be the valuations of alibaba and what it means for yahoo!. one of my most important books from a few years ago, john taft's "stewardship."

we will speak to john taft about wealth and wealth disparities in england. 3 major stories -- alibaba, market reactions, the dow at a record high, and to scotland. >> looking forward to what is going to be an interesting day. thank you very much indeed. talking about what is happening with alibaba. let's get another voice. the applications for the tech landscape. good morning. why should i be interested in this company when i already hold amazon or yahoo! or one of the other big tech titans? >> those examples are pertinent. one reason is because alibaba sells more goods on its platform than amazon and ebay combined. if you hold amazon shares, you should be concerned. if you hold yahoo!, you should be interested.

yahoo! holes 22.5% of alibaba stocks. worthbecoming potentially $168 billion, that means your yahoo! holdings are going to be worth more. >> do you think the corporate governance issues are something i should be concerned about? watch.thing to the fact that it is only operated strictly in china and that regime with its very funky revelatory structure. i do not want to be judgmental. i am sure they are doing everything on the up and up, but it is not transparent. toy are starting to expand the u.s. starting to make overtures for india. the value is its ability to expand. it will have to be more transparent. you will see that improve. i don't think that is a reason to be wary. fixed amount of money to invest in technology, i have got to hold this. right?

>> seems that way. at least you have to monitor it. a lot of people started selling off all her holdings to make room for this in their technology portfolio. >> do we understand the impact this company that have -- could have? it is so much more than amazon. it is also going to have the potential to open a range of companies out of china to western markets. >> know, we do not really know what the impact is going to be. which is why your statement that you have to watch it and had a small piece of it in order to keep a pulse on what is crucial. its potential is so much greater than anything we have seen. even if it continues to dominate within china, it is 80% of china's e-commerce. revenue base is massive. $2 billion worth of profit in the last quarter alone. if it can translate that and extend that into other markets,

it is absolutely massive and you cannot ignore it. >> is e-commerce still the best way to monetize the internet? if i am an investor looking for a way, is e-commerce the biggest bang for my buck? everyone likes e-commerce because you can understand the profit margins and the supply chain. it makes sense. the other types of internet holdings were you look at twitter or things that are based ,n advertising and engagement it is not as tangible. which is why alibaba is so attractive. it has the e-commerce base that is massive and has fundamentals. it also offers everything else that every other tech titan within the u.s. offers. it has got it all in one package. >> if you were check -- if you were jack ma, would you jack the price up? has the tendency to come back

and bite you. >> it was pretty early on and it was not an aggressive jump. they did not really blow the top off. it was quite clever. we know there is interest and we are still going to be modest. let's see what happens. >> there is still a lot of interest. it will be oversubscribed and have a bump on the first day. >> if i'm a small tech startup or a medium-size company, how do i view this kind of you not? do i look up and say i am going to be like that one day? or i'm going to have a piece of that or work with that. ourselves, wes have 40 companies we invest in, the best advice is you cannot get caught up in a day-to-day. you have to focus on your game and bringing your best game to the table every day. the only thing that relates to four founders, you could do this. jack ma started some years ago.

>> not many. >> from an aspirational point of view, it is possible. you have to bring your a game every day and you cannot get distracted by the big giants. evidence of the fact that the technology landscape is fully global. we have got an e-commerce site at of china listing in the u.s. the scale and size of this, the joined around the world. how parochial can you be when it comes to technology? can you be? do you have to be? the advantage of alibaba is that it has a huge footprint in china. it is also a potential for a global company. if you think about how to invest in technology, how local or global does it have to be? >> it has to be global but you have to start with a focus on something that one knows very well. usually that is your local market. if you cannot demonstrate the

ability to execute within your local market, you have no chance in trying to do that globally. buthave to start somewhere have global ambitions. even if you do not, you just want to be the european leader, someone else will come into your backyard. you have to at least be able to defend against the global threat. >> the competition for the global. >> it will be. >> do you think europe has got that? do you think the european investors and startups have got that? do you think we are too parochial. >> i think we are getting there. i am here because it is improving. we had successes for skype. it was a global phenomenon and billionce for 2.5 and then a billion. eileen joining us from passion capital. coming up, the greek roadshow

rolls into london. the anti-bailout party is ahead in the polls. what impact does that have on the climate? ♪

>> welcome back. you are watching "the pulse." live from london on bloomberg television. we have not talked about greece for ages. a new poll suggests the main opposition party is ahead of the

prime minister's party. the syriza is the opposition party that is in some people's minds a concern. how big a political risk of that be? have the helennic capital market chairman. good morning. and hislk about syriza aspirations for grisman and four. grace has been off the radar. correction -- >> a good thing. >> 2016 is the next election. >> probably. have the presidential elections. the president is not earl of thedirectly, 3/5

parliament. he needs a big majority of at least two parties or three parties. that is what the government is working on. they are not sure they will get that. >> the political story is uncertain. >> that is the main of the democracy. in democracy, everything is uncertain. >> but there are degrees of uncertainty. has been off the radar, which is a good thing. do you think the uncertainty will creep in? that,they ask us about they know that this is the normal part of democracy. what they are more interested in is if that would have an impact on the recovery. as you know, the macroeconomic indicators have been better

since a year ago when we spoke here. speaking about success, but recovery is unfolding. developments would stop that process is what they want to know. my answer is no. as i said, any party which would come into government would not want to stop that. >> you don't think he is going to do something radical? we are going to write off the debt. we have private sector involvement, we are going to have government sector involvement. >> he might try. that is also part of the normal democratic process. that is not a decision we can party.om our this is an international decision. we have lenders and the european union. .e have a very new frame the debate about growth has turned european.

from thee about moving solely banking sector and finding other ways through the financial market. >> is interesting you bring that up on a day when the ecb has its targeted mechanism for driving credit into the estimate -- into the sme sector delivering not quite what we had hoped. what would it take to get greece from a painful recovery to something that is little that more. t more we get sme's to wan credit, how does their confidence get raised? >> we have to pump more money -- >> they have to want the money. >> as we saw today with the ecb experiment, the demand has not been that high. finance a demand for from the public and private sector. it is very important that this

move from the solely banking and financing of the economy, which has been the greek way for years, towards a more financial market.riented capital which is something we are working on. but we have been doing during those years of the crisis is to put the tools and structures necessary in our financial market, which is not huge. >> housing you get a bigger take up? the u.s. uses the capital markets more effectively than we do in europe. we have a banking channel that is broken. on the whole is trying to mend that. this would have an impact on greece as well. it cannot be a national thing. in -- as the events unfold, we will be into that

process. >> why is the government not moving more quickly? it seems that we have this painfully slow clinical -- it seems that we have this politicalslow cli process. why have we not got a decision? >> we have a decision. been sold to somebody. >> but he is still able to put -- of those >> the judges have had some reserves. a very indirect way. that's the normal process of a democracy. it's true that in greece, things evolve a lot less. again, i'm searching for gentle words, less efficiently. the government's

time is taken by trying to work on reforms on the judicial system and public administration. this takes years. we can't do it in 6 months. the public sector is now much smaller and runs a bit more smoothly. >> good luck with the capital markets push. that is a big part of what happens in europe. good luck. konstantinos botopoulos, chairman of the hellenic capital markets coalition. scotland heads to the polls. live from edinburgh when we come back. ♪

>> good morning. we are talking about the currency markets on "the pulse." quite a small reaction in terms of euro-dollar. the follow-through of the tltro. the target program that the ecb is trying to use to force money into the banking system. the banks have got to want it, banks do not want it. the number was below estimates and we missed estimates. a big reaction in euro-dollar, we did not get it, 1.2876, up on the day.

where we started this morning. what else should we be watching? scotland. anna edwards is in edinburgh. watching alibaba. brian choke up -- ryan chilcote is here. anna? >> yes. opened some hours ago. they will stay open until 10:00 this evening. that is the period during which scots will be deciding the future of their country and the future of the u.k. as well. in terms of when we get the results, 2:00 a.m. tomorrow morning. i will be up. that is when we will get the first results coming through. a smaller constituency reporting first, fewer votes to count. the western isles are expected to be the first to report at 2:00 a.m. other smaller constituencies might also report. the results will drift in 3:00,

the morning.00 in we will get those numbers coming through. big constituencies like those in glasgow and edinburgh are not expected to report until 5:00 a.m. we could detect waiting for big counts. will be atesult breakfast time, that is when we are expecting to get those numbers. the royal highland center is where we will get the official results announced. that is what we are watching into the small hours of tomorrow morning and onwards into friday. >> breakfast time will be interesting tomorrow morning. preface is the best meal of the day. anna, thank you. anna edwards covering the scottish referendum. >> ryan, alibaba. >> nothing like what might be the largest ipo in history.

9:00 p.m. london time this evening. after the new york stock exchange closes. that is when investors will get that e-mail telling them what the price of the shares is going to be. and how many, if any, they have been allocated. that is interesting. everybody wants to know the price. it is the price that will determine whether it is the biggest ipo ever. secondly, i am watching between and london time tomorrow 9:00 p.m. that is when the stock is going to go live on the new york stock exchange. everyone wants to know what the first-day performance is going to be like. it could be big or a dud. >> tech ipos have a mixed history. obama's schedule today? >> president obama will meet with president poroshenko, the ukrainian president. poroshenko will address con gress. >> big day. stay with bloomberg television. later we have a special interview with business titans

warren buffett, lloyd blankfein, and our founder, michael bloomberg. the shocking governor -- michigan governor will be there as well on "in the loop." ♪

>> this is bloomberg "surveillance." >> scotland votes. the expected record turnout answers yes or no to independence. anna edwards joins us from edinburgh. janet yellen sent stocks to record highs, gold plunges. what is that about? alibaba phrases this evening.

this is bloomberg "surveillance," live from our world headquarters in new york. thursday, september 18. i am tom keene. joining me is scarlet fu and adam johnson. we get to our morning brief. we could go for five hours. >> nothing brief about the brief. starting in switzerland, the national bank cut the overnight -- overnight, they cut the inflation forecast for the next two years. saying the risk of deflation has increased. when a big mac costs 15 bucks in zürich, you're not bringing the capital flow and. fallina, new home prices in 60 cities, up from 60 four last month. the broadest decline in 3.5 years. >> a busy day. >> 8:30,