>> committed to considerable time. the federal reserve maintained its pledge to keep interest rates low sending the u.s. dollar to a two week low. support the bank of england governor's case that more time is dated to shore up the recovery. we look ahead to today's rate decision. >> face that heads east. mark zuckerberg is in india to meet the prime minister. -- facebook heads east.

welcome to the program, everybody. you are watching "countdown." ♪ london.00 here in good morning. stocks in the u.s. rallying after the latest minutes from the federal reserve revealing the central bank will continue to keep interest rates low for a considerable time. for more, we are joined by christian scholz. the market reaction says low means low for longer. >> the balance is very much on the residential market and the european issues. there is plenty of downside risks which the fed will obviously way once they start answering that considerable time between that and the first rate hike. watch here is that

this came before the latest big decline in the unemployment rate. they already had discussion about whether there was significant slack in the economy or whether there wasn't and the latest decline may change the guidance as early as the october meeting. there may be changes in store. the considerable time language may still digress. >> they may be stretching wheniderable time" unemployment is below 6%. discussions about guidance will become more intense at the end of this month when they will also finish qe. the could look more hawkish is simply because they did not know at the last meeting that unemployment would fall this much. >> one thing we were talking about is how this takes us back

to 2004 when they had exactly the same conundrum, the debate about slack and the language. he went to the next move and begin to use the word patients. of the in some references and there was six months before they went from patients to the hike. where are we in the debate? is it getting pushed out further and further in your view to the end of 2015? where are we with that debate? with the domestic improvement looking very robust and very resilient, every time you get a disappointment in the data, we are sure we would get a positive surprise. i think it is on track and we need to keep in mind that they were thinking that the concentration rate had kind of plateaued. the latest data showing it is not returning to labor markets. there will be even more pressure on moving upwards. changet think it will

this view is that there will be several rises next year which means it cannot be the end and it must be something a lot earlier than that. we think it will be april, so six months. first rate hike but there is plenty of risk to talk about that they reflect much more than the fed does and i think ultimately, markets will fall in line with the fed. >> and what are the downside risks to the economy, inflation could be pushed lower. they cited that last night and a number of officials spoke about this. what's your assessment of inflation? is fed preferred measure running below the target. the debate for you want to go over with she would allow overshoot.o it seems we're getting ahead of

ourselves. will there be a time when we start to wonder if the fed will allow inflation to overshoot? little less a likely than it did a few months ago. inflation lately has dipped because of the stronger dollar. we also had a big klein which has helped so it looks less likely at the moment at least over the coming months we will get to the point that inflation might overshoot. we reached 2.5% that night do not think that is very imminent. the labor market shows very fast erosion of slack. the participation rate making no signs of turning around. wages are not still growing very much but they will eventually have to start growing and inflation could then pick up. the fed is telling us that we will not react very partially

and it will breach that 2% target. we will take our time and make sure that is not interrupted. >> you mentioned the oil price. brent crude prices now in a barrel market down 20% from the peak. plus for the global economy that oil prices have lost that much ground? when does the start to have a real material difference on the things that you are watching? >> the fact that we are even discussing whether it is positive or negative shows how far it has come. it would only be good for inflation expectations but normally, energy becomes cheaper except for those companies that produce the stuff, it is positive. it is clearly positive. they have to spend less at the petrol station and more on consumer goods and other things. it is a positive for us in

the western world at least. with debate where we are the china slowdown. what's the biggest threat to the american economy? inflation is underwhelming. where is the biggest threat? is it the slowdown in europe or the lack of momentum in china that is becoming more apparent? >> most of it seems to be at least external. i think europe is still the bigger market for the u.s. or the financial links so the transmission to the u.s. is different than any in china would need. it goes beyond the financial and it was always about china. to head toward the troubles, big lyrical geopolitical risks, these kinds of things are really created

uncertainty, it may weigh on the u.s. more than a gradual slowdown of growth in europe. we have to watch these two because i think the financial tradewinds are clearly stronger with europe. the potential for real global uncertainty is probably bigger from china. >> in a matter of financial stability was discussed and it showed us that. they mentioned they deterioration and leverage, valuationst expressed. out of those, which one is on your radar right now when it comes to financial stability or instability? to be honest, all of these issues are something to watch but i don't think we are anywhere near a proper big bubble that could lead to the next crisis in any of these stock market variations. the stock market is the one that usually has the biggest

potential to affect the economy in a big way. in bubbleainly not territory. there are plenty of small risks that the fed needs to watch but i'm not concerned broadly for the american economy. stays withn schulz us. prime minister winning his key confidence vote overnight. we turn our attention to the euro zone economy to talk more about the reform agenda when we come back. it is 90 minutes past 6:00 a.m. in london. past.is 9 ♪

companyfor today's news. bill gross, the new janus bond fund deceived 66 .4 million dollars in september, the same month he left pimco. soard sinces announced gross was joining. htc has released its first action camera and it is waterproof featuring a wide angle lens that can record video. priced at $199 competing with

the likes of go pro and sony. it is the time moneys company's first non-mobile product trying to reduce it reliance on smartphone revenue. london's record of high growth is over. the latest report shows property growth in the capital fell for the first time in almost four years. prices also falling the most in a year. those surveyed expect robbery market growth to lag behind that of the rest of the country for the coming year. i'm going to bring you a more in-depth look at the report when we talk to the senior economist joshua miller in the second hour of "countdown" at 7:10 a.m. >> we see the risks are building up. we are far away from having another financial crisis or anything like that. it's very important to call attention to these risks

building up so that the action can be taken. situationachieve a that is good for growth but keeps financial stability safe. monetary capital markets director jose vinals. let's get back to christian schulz. we said we're going to talk about the eurozone. i was intrigued by the reform debate. we've had a number of european about the reform agenda, specifically getting growth and unemployment down. in the euroweakness has allowed germany to put off much-needed reform over the last 10 years. i thought we were talking about reform in france and germans are the ones who are preaching reform. have we been looking for reform in the wrong place? is it just something everyone needs to do? breeds complacency.

that is the point here. there is clear evidence that the grand coalition we have at the moment is going in exactly the opposite direction of what germany is recommending to other countries. we had a big increase in pensions announced in we are introducing a national minimum wage. i do not think these things will undermine growth in the short term. they may boost because of higher wages, more pensions. at least in the short term, it may even boost. >> maybe that's the privilege of an economy that thinks it's been run very nicely -- thank you very much. >> i don't think that germany needede last 10 years more reforms. it's always good to have it but i do not think the german economy is in a bad place would have a balanced budget. we have strong competitive

position. the labor market is amazingly strong even through the various bubbles -- lehman, the labor crisis. >> you are not at all perturbed week, thebers this possibility of recession. we have got issues in germany. it is slightly backyard stuff that they are beginning to feel a little bit of a slowdown albeit more from russia. you're not concerned at all? >> industrial reduction falls by 4% and that's a big problem. it is usually close somewhere between july and august.

a august and july together, the downtrend is that little dip we are seeing on the quarter. yes, there are some issues but these are normal. it is not because germany rauised the minimum wager they have not had labor market reform. it is driven by the uncertainty they caused with their actions. it is aggravated a bit by the situation in iraq and syria. uncertainties which every once in a while effects the economy but usually it bounces back from it very quickly. we are expecting this dip at no doubt there is one to fade by beginning of next year. they will be back in full growth mode. >> does that apply to italy? last night prime minister renzi did get the confidence vote. they waited 40 years for the

reforms. how much of that argument applies to italy which has many more reforms to implement? >> you cannot really compare countries like for like but not in the position germany is in at the moment where there is a thedown and it leaves one situation where germany was in the late 90's where it still took 40 years to do the report. italy has some reforms and that it was followed by a time of political instability. all the right noises and he is delivering on his reform promises which is very important. whether these labor market reforms are it, whether this will change the long-term outlook for italy, we simply don't know. it sounds good. i will give him the benefit. >> it takes years for the fruits to be borne. >> for instance when we look at

spain or portugal, who did reforms in a much, much more difficult global environment in they startedn enjoying the benefits two years later. >> until we got unemployment rates it down in spain and many places they say have successfully done reforms, it's difficult to sell that as a plan for future growth to the electorates. >> you have to start somewhere and the rates have been falling. if you look at employment growth in europe over the last three quarters where we have data, the fourth quarter to second quarter this year, spain and portugal are in the top three of the european countries in terms of employment growth. there is real progress in these countries. if you look at the current slowdown, it's not happening in spain or portugal. these countries, despite a slowdown elsewhere, seem to have

enough momentum because of the reform progress. , stay withn schulz us. the bank of england will tell us what they did over the last few days meeting because of the imf meetings but we will know today what they did, maybe what they want to. stay with us and we will debate the future of rates and the u.k. that's next. ♪

>> welcome back to "countdown." we are back with christian schulz. the bank of england has been meeting this week to set interest rates. there is not an expectation that we will see a change here in the bond buying or anymore. what are you expecting the focus to have been? the continues to be a debate about whether the bank of the england or -- the bank of england with the fed will go first. >> one uncertainty that has been weighing on the u.k. economy, the scottish referendum, producing no independent so that's a risk that has not materialized. that is positive for the economy and should give more confidence to the bank of england that the recovery will continue at the same pace or a similar pace than

we have now. unemployment could fall further and potentially wage growth could pick up and prepare the atunds for monetary help some stages. at the same point, britain is part of europe and europe is slowing down creating a new risk to the economy which i'm sure the bank of england will also be debating. what does the current slowdown mean for the u.k.? we have some indication at least a u.k. manufacturing is suffering quite significantly p.m. pmi has dropped because a came from a higher level. manufacturing is at 10%. we think it will stay strong and is there reason to believe that the domestic recovery want continue. we think ultimately they will hike rates before the fed in february next year. the market would

fundamentally disagree with that before the last meeting. they were pricing in a 25 basis point hike. thiswe are going back into one. you're very different to where the market is going back on rates. >> i thought it was a really interesting part yesterday. thecymakers have to assume most likely path of events. whereas markets of course, you look at the means so they look at the risks that are valued much more. markets of course see the eurozone as declining and that creates a big wrist for the u.k. as well and maybe the rate hike will come a later but we expect the eurozone at the beginning of next year to start recovering again so that means come the

february there will not be the risk of a eurozone and therefore the bank of england can hike. we also have to look at the data and compared the u.s. and the u.k.. it is also low but if you look at the core measure, it is only just low the target of the bank of england. >> let's leave it there. thanks for joining us today, christian. good to have you on the first half hour for this thursday's "countdown." in the second half hour, we will on the german economy. we will speak to the president of the evo institute -- ifo inst itute. >> you can join in our conversations on twitter. @markbartontv @manuscranny. is in indiaerberg today. we are live in mumbai to figure out who he's been meeting in

more importantly -- why? ♪

>> welcome back to "countdown." i'm manus cranny. 630 a.m. this morning. mr. draghi speaking today and the bank of england decision but i thought we would take a look at the dollar index. are the fed frightened? do they not want to risk the possibility of a bernanke tantrum? -- they do not know what to do. foreign economies something the fed is worried about and futures

oddsrs, they produced more on when the hike will come. this is down from 68% to four the fed minutes. the dollar just a little bit lower. dollar lower, yen is battling. it's trying to find some strength. yet moving a little bit higher, dollar lower. what you have is a big call from one of the most accurate fx forecasters on the bloomberg roster. they say you will see dollar yen --p by 10% over the next keep an i on the interest rates. he comes down to good old mathematics. the difference is the widest difference since 2011. some say 120 is on the way as well, a little reprieve. >> i'm anna edwards and these are the bloomberg headlines. eu leaders meet in the land to jobs and german

chancellor angela merkel said while progress is being made to combat euphonium pro but -- unemployment, growth is still needed. holding an senate plan for labor and budget reforms winning favor with the majority. i consider my personal ideas. if there's a chance to talk about it, we will talk about it but given the deadlines i do not think we will over the next 15 days. thise next budget law, will set the limit at 2.9%. setback fora incoming european commission president jean-claude juncker. they did not approve one of his appointees coordinating energy policy. her candidacy was thrown out by two annals of lawmakers and

european parliament. meanwhile, they approved the u.k. candidate to become a member of the european commission. and the u.s. has announced screenings advancing for the ebola virus. they will have to have temperatures taken and will be asked if they have had contact with people infected with ebola. screenings begin this weekend at jfk and expand four other major airports next week. >> facebook chief executive begins a trip to india. he was speak in new delhi on the importance of boosting internet access. for more, bloomberg tv india joins us now from mubarak. -- from a by. take us through mark zuckerberg's schedule. be ans going to interesting one. i can also tell you he is choosing to visit india. however, most of them making a visit like you mentioned only to

the capital of new delhi, an indication of where priorities really are at this point. what we do know of mark zuckerberg's itinerary, he started with a meeting with the prime minister, very active and can user of social media to reach out to the people will. the prime minister has recently to beed and it is likely announced. he will then be meeting with top telecom companies to work on ways to make internet cheaper as well as making it available in different languages after attracting more users. in fact, india is facebook second-largest market outside of the united states. one billion users globally that facebook has, 100 million are them loga and most of onto the website from their mobile devices. that said, india only contributes 0.1% of facebook revenues for the quarter ending in june.

indian optimism could be driven largely by the china market completely block her facebook right now. zuckerberg will also be meeting with members from the indian tech industry including google and microsoft. back to you. india inloomberg tv mumbai, thank you. >> caroline hyde is with us in the studio for a little bit more. thisrberg strip to india, is ultimately about growth for facebook, the number two debt market for them. the numbers are staggering. >> and we have a healthy dose of cynicism and all of this. there's a little bit of gluttony with all of this. mark zuckerberg has always pushed for the next billion, in the next 4 billion that need to get online. it staggering that 4.4 billion people are currently off-line of the world. 2 billion who are.

this is where they need to push. they've always talked about getting into the market and they have talked about internet.org trying to push this elaborate quest. ian mckenzie just put out a report teaming up with facebook on this to dig into why such a huge amount of people are still off-line and where we can penetrate most. india, 1.1 billion people, the biggest population in the world of off-line people, people not connected to the internet. 15% internet penetration. that's it. it's been amazing growth, i have to say. they've managed to grow 30% of people getting online but there is still so much further to go but a lot of india is rural. a lot of users are female and they're trying to attract women to get online. many are illiterate. they cannot really use the internet. we are seeing infrastructure being built out and companies

such as reliance expanding and capabilities about getting infrastructure there but also about preaching to the converted. modi extols the virtue of social media. >> mark zuckerberg is not the only to visit india. >> there's been a whole raft of them going over. already from facebook, sheryl sandberg, chief operating officer, discussing where they help. overall, the prime minister wants to see governance improved by social media and more of a connection between the people and governments using social media and sheryl sandberg has been there. amazon chief jeff bezos just coming back. google product manager. that's an interesting move because for them it's all about going for a messaging app. this is also talking about the

growth potential is facebook, the purchase of whatsapp. it's huge and the emerging markets because it's generally free. chargede year you get $.99 or 99 pence. india is their number one market. if whatsapp is brought into the facebook overall company, this is really an area to grow to keep pushing forward. in growth, 50 million people three months. what's so fascinating about the way that india uses online and phones is they've been so practical and clever in the way that they don't want to pay for access to the internet so they do this. instead of having a text, you drop call. you keep the ball moving. it's the free way of communicating. >> they like a bargain. >> they also want to see growth

in e-commerce. even though we are seeing 15% penetration online, we are not seeing e-commerce grow at the same kind of pace in india. why? they still want to see cash in hand. that is why jeff bezos and apple has been over there trying to build up the payment system so this company -- >> it's big in the future but right now, how big is it? biggest their second market outside of the united states. it is huge for facebook and such a priority for mark zuckerberg. this is why internet.org is hosting this event in new delhi. we are seeing the summit, the discussion about the growth of the internet and how they can penetrate further. content and usability summit about getting more mobile content. a lot of it is incentivizing people to go online. it's not relevant to them but if

you start making content for the rural community it suddenly means they need to get access and everything will get the ball rolling. >> thank you, caroline. coming up on the program, looking for a new place to live? to best cities in the world live and work in. a new survey coming up next. ♪

>> welcome back to>> "countdown ." 6:43 a.m. in london. workers are saying london is the number one desired city to live and work in. you can >> see the top five. we should have had a drumroll. >> boston consulting group is the author of this. why is london so desired? >> lots of reasons. the top three countries are all english-speaking, u.s., u.k., canada. the u.k. has a relatively healthy economy. like new york, it has 3 million foreign workers sue people thinking about moving to london

are less intimidated. they can imagine meeting people they know and being part of a community. after the olympics, cultural things, the sense of energy and dynamism is very attractive. >> quite a lot of people are prepared to travel abroad for work. is this a marked change? are people increasingly really to travel? how does this vary by country? two thirds of people out of the sample were willing to move abroad for work which is really germanic and a real shift. there are countries they're like nigeria and pakistan more developing that you might expect but more than 90% of people in france and holland said they would be willing to move as well. it's a trend you are seeing in different countries. the numberthis is one place to be according to the survey -- >> try not to gloat. city toa darn expensive

be in. what will employers take away from this report? use a employers need to be quite adept in what they offer to those coming to cities like paris, new york. equation here.al there's a degree of international mobility. you can be a company and a country where you see your best people moving away but you have to be aware of that. if you look at what motivates people to stay, that's changing. the number one reason want to stay is "if my work is appreciated." line.ove this that's a generational change. get up, go to work, the grateful. be comfortable with my colleagues and get on with my boss. is are hugely important things. they need to create the

environment and have line managers capable of leading people in the right way. >> where did the british want to work abroad? >> not surprisingly, english-speaking countries are attractive but also germany and that's partly because of the health of the economy. written the americans are among those who are less likely to say they would be willing to move abroad, under 50% when you compare that with the french and the dutch. >> is that a sense of the underlying economies at this time? >> it's interesting when you look at younger people in britain and america, they are more willing to move. experience, better career, number five, money, 56% cite monetary reward. things, are a bundle of salary prospects, standards of living. the things that top the list are

broad in my personal experience, build my career. these are the reasons people are looking to go abroad. for joiningnk you us this morning from boston consulting group. >> we are taking to the skies next on "countdown." pilot.t your average he flies with a camera mounted to his helicopter capturing aerial footage for bloomberg -- for hollywood. we travel to hollywood to see how they do it. ♪ love everything about my job. sometimes i literally had to pinch myself to make sure this isn't a dream. a $40 million company but he's not your average ceo. he flies helicopters for hollywood. >> we operate helicopters in l.a. and a big portion of our business is for the motion picture industry. >> i try to put the camera and

the sweet spot 100% of the times of the aerial camera operators who are usually next to me can always have the shot you want. director of photography flies with him and he can capture shots using onboard controls. ofin the case "transformers," you are dealing with robots that don't exist. let's just make this movement because it would seem to me that's what a robot would do in this shot. miss primeis off to or bumblebee with that point of view flying through and around, in between buildings. >> he has to fly as if it's really there. i compose the shot and they will animate the robot in the shot to match what we do for them. a 600 thousanded dollar camera mount that holds and studies any digital camera and lens. >> we build the most advanced

aerial platforms in the planet, in my opinion. hashe stabilization that really, really gotten good and that's what this system does. there's a little bit of vibration going on and that's what this is all about. it takes that and makes it her prickly stable. here and it'ss in all braced so that nothing can vibrate. everything is tied down as tight as possible. >> that stability allows them to capture footage from miles away. such a long lens and such great visibility that we could be three miles away from an animal event so they could not hear us. >> he also sees opportunities in adapting the unique camera systems for unmanned vehicles. >> not only haven't thought about drones but i see it as an

integral part of our work plan. almost every single one knee. x and they need to be stabilized. we have a lot of ideas for drones in the future. >> coming up, getting into the record books. what wayne rooney is hoping to accomplish in today's newspaper segment. ♪

>> a very welcome back to "countdown." timetime for that exciting you've all tuned in for. i will save my picture. at angers from trash rescued food restaurant in bristol. what this does his the founders go around in the evening and go shops, other restaurants. they find food that is thrown byy being wasted and donate farmers in each day the menu changes and they make what they can from it. they've had lobster, prawn salads. that much of the food is absolutely fine to eat. it is the real junk fruit -- jack food project.

skip-chen. i like that. [laughter] it's a clever concept. whether or not it will be allowed to survive, i have no idea that they are getting customers who are really enjoying it and we will have deceived. perhaps some of the authorities will react to it. making a point. i have a serious one. front page of "the times," resisting calls for ebola screening the day after the united states ordered immediate checks to start at least at jfk airport and others will soon follow. contrast, the u.k. will not introduce screening that the u.k. is putting the emphasis elsewhere. hundreds of nhs staff are being sent to sierra leone as well as helicopters and medical support vehicles.

to ber thing that seems happening is simulating what would happen if we do get ebola here. resilience training will be put in place. the health secretary insisting words, britain has the most experience in western europe dealing with highly infectious diseases that we are "one of the most international companies and -- countries in the world so we need to be prepared." >> big game for england tonight. , the giants of the footballing world. back in 1993 there was a world england-sanng game, marino. england scored in 8.3 seconds which remains the quickest goal in world cup history. we did not get through to the u.s. that year but high hopes for wayne rooney. he is only eight goals behind the all-time scoring list. eighthe can just get all

tonight. he will be tied and england will be heading to euro 2014. >> he still manages to get manchester united in. >> every day. vicariously. >> are you trusting his editorial judgment? >> enough. >> you're so quick witted. my hats off to you. [laughter] theelcome to "countdown," happiest show on bloomberg. it's a picture. i like pictures. morgan mckinley has a report out, get your cv ready because and 8% pay rise. london is up to hiring more bankers from the european union, france specifically. more bankers pay more taxes. >> and we heard from boston

consulting group a lot of people want to leave france. join our conversation on twitter. talk about anything we've talked about or move the conversation on. here are the handles where you will find us. german factory numbers disappointing. more data coming out. stay with us. ♪

>> the federal reserve maintains his pledge to keep interest rates low sending the u.s. dollar down. the case that more time is needed to shore up the recovery. we look ahead to today's rate decision. >> facebook had ceased. founder billionaire mark zuckerberg is in india to meet the prime minister.

welcome to the program. this is "countdown." london onm. here in thursday morning. getting some data out of germany. it has been a week of disappointing data. factory orders, the biggest decline since 2009. industrial reduction a day later. that was on tuesday. we are getting some export and import data. pressing the terminal. for the month of august exports fell. we are expecting a drop of 4%. imports falling by 1.3%. analysts were expecting an .ncrease a big decline while the previous month's data is being revised as well. less ands exporting --

importing less as well. the trade balance is $14.1 billion. still to the positive unlike many countries. falling, imports are following, factory orders falling. industrial production is falling. this is the engine of the eurozone economy. what does it mean for the policy from the european central bank? there is a question worth asking. we will get more analysis on the health of the german economy and its role in the eurozone. it is a very important role as well. in half aniew is hour. he has lots to say about what is happening within the eurozone, within the ecb and in germany itself. >> we have got some numbers from .he recruitment business net fees increased 4% on a headline basis and 9% on a like

for like basis against the previous year. they're sending pretty positive in terms of the policy. we have made a good start to the financial year and are growing in all regions around the world imported --untry they grew simultaneously for the first time in four years. in recent conversation we have focused on a strong performance. australia had been a weak spot and people were looking for some signs of turnaround or stability. there was some concern about , that was one of the issues they have been worried about. elsewhere many markets continue to improve as 11 businesses delivered quarterly net fees. they're saying they have record net fees for the quarter.

that was one of the areas of concern. perhaps not so. we will be focusing and digging deep and see if we have comments on wages. we will be hearing on bloomberg from the hayes finance director. that is 8:30 a.m. london time. fasthave a little bit of retail. qlo came in at ¥100 billion and they are raising some of -- the profits will grow by 38% going forward. and they are also -- this comes uniqlo sayingf

they will open in the netherlands. that was a dutch newspaper report yesterday. 30%.ts are rising by the guidance is up for rise as well going forward for next year. it is the minutes and you are quite right. they had a substantial impact on equities. the feds minutes were almost like a steroid hit to the equity markets because they are prevaricating. the fed is worried about revoking another taper tantrum. that seems to be the bottom line. they want to avoid the moment for the markets. keeping rates low for a considerable time, they do not want the markets to misinterpret

so the markets misinterpret a fundamental shift and they also cited a strong dollar. not only do they not want the market to believe they will raise rates but they do not want people to believe that it is on their agenda. on markets reacted. treasuries are the best performing bond market in the world. there is considerable slack in the economy. a return.ing this is out of 144 on markets. bang went the equity market and -- seems to be >> volatility up this week even though i was down in yesterday session.

i think it could characterized tuesday's trade as global growth is at risk. was that might be the case. is very much addicted. >> it has been three years since we had that drop. had a four-day decline of the s&p this year. is volatilityhing is rising. you have seen volatility rising. up i moreby 1.5% and than 1.5%. that has happened on six occasions to -- since 2009 and

thereafter the markets dropped in the following week. rex i think mark carney would be devastated. >> is he in washington already? >> they had the meeting early. >> when he wakes up in places rewind to watch the show he would be devastated. data.about the and the data, there is a lovely line. the private server data said wages are atsector record highs. the official data is friendly. when the last meeting came to pass there was a 25 basis point

hike. manufacturing at a seven-month low. the lowest since 2008. >> that is our big export. >> there is this political shift occurring and we have these violations. could we see the u.k. independence party winning their first seats? >> this is the first meeting on that topic since the referendum. >> you can join in any of these conversations. it is nine minutes past seven. our guest will be here to tell us the latest trends in the

u.k. housing market.

>> time for today's company news.

point $4 million in september. the same month he left pimco. then stocks have fallen back from a six-year high. it's to see has released its first action camera. it features a wide-angle lens and can record hd video. ofill compete with the likes go pro and sony. it tries to reduce its reliance on smartphone revenues. supplys record high growth is over. that costsreport fell and house prices across the u.k. fell to their lowest in

more than a year. lagsurvey expects growth to behind the rest of the country in the coming year. seniors talk to the economist joshua miller who joins us in the studio. let's talk about london. coming off the boil is the phrase that you used in the report but bearing in mind we have seen the longest continuous price raise. >> you might even see some further weakness. this comes on the back of an incredibly good run. looking forward i think what you , probably this time

this is the low single digits. the debate we are having internally is whether that figure will be negative. that is what it is signaling. >> there are different facets at play. mortgage availability is the lowest since 2008. you go into this and give england meeting and there is a series of things. getting used to the rails. >> the credit condition survey shed some light. there is lenders adjusting to the new regime. , theyperational issues

are taking on board the bank of england's message. lenders are taking a slightly different more risk-averse attitude to the housing market taking on board the bank of england's messaging. >> you talk about supply trends remaining more or less flat. selling their homes. why is that flat when we have seen such strength in the housing market at late? under no pressure to sell at the moment. happen to the house prices over the next five years, the outlook is still positive. >> they are not under -- households are not under that

much pressure. given where interest rates are. >> what about london, prices turning slightly negative for the first time since january 2011. if it was a bubble, has that double burst? factors are a number of why house prices are so high in london. further weakness is going to happen. it comes on the back of a strong market. we have been more worried if prices were continuing to rise 20% year on year. this is quite healthy development. quick she said the rental market -- market remains firm underpinned by supply. underpins a bit more than the london market -- london market. -- spacegger picture

is expensive. it does not matter whether you are renting or buying. stock on thegh market. >> how resilient where the -- will the housing market be? it often response quite dramatically. how will the housing market be if we see that rate rise? >> we are expecting resilience. they are not going to raise rates aggressively enough to sink the housing market. they are taking into account all the things which you have just said. the interests rates are heading half of a percent. this time next year they are

expecting 1.25% so about 75 basis points. of the in the context half a percent interest rates that does not look like an aggressive tightening. we think the housing market can withstand that kind of interest-rate increase. >> they were happy the scottish referendum, some were happy and some were not. they probably breathed a sigh of release. that the vote was not yes. how much of an impression is that having on the market? >> it tends to, you tend to get a bit of uncertainty. people tend to step back. we will see a big resumption of back to normality for the next two months. >> thanks a lot. good to chat with you today. royal economist of the institute of chartered

surveyors. why is mark zuckerberg in india, who is he talking to? find out after the break. >♪

x welcome back. mark zuckerberg begins a two-day

trip to india. this afternoon he will speak on the importance of boosting internet access. here with a little bit more is caroline hyde. is it all philanthropic or is it about living his number two market. --we will halve the hole healthy dose of cynicism. he does talk a lot about getting the next billion online. is still 4.4 billion to go. a massive amount of people need to -- so you can get rural areas, connection to the web. is an initiative he set up. they have their first summit. why pick india? the scale of people off-line is

phenomenal. they have 15% penetration. there are more people to go in india than there are in china and indonesia. it has said -- this is an easy win. he really did in this last election and gauge by twitter and facebook. this is why they go to india faith -- first. >> there is an effort by various

to o3b.nd we spoke this is not the first tech leader to go to india recently. >> it is a real trend. forging the way was his chief operating officer. she went first in july to meet the prime minister and be discussing how they can help with facebook, with the internet and prove governance in india, talk to the community and a be then -- this will partner. indians are savvy in which they use the internet. they dropped call each other or they are big users of whatsapp.

e-commerce has a long way to go. manager has been over there. there is rumor they may be starting a messaging app themselves and they want to see how it worked in emerging markets and collect there as well. an amazing report that has been done in tandem with many of these technology companies. to show what the hindrance is, what is holding back people getting online and it seems to be with andy averell communities, hard to get the connection and the infrastructure. also is it meant for you and this is what will be interesting is what mark zuckerberg will talk about. --ing to get things for providing locally relevant content for some people want to get online and make it work for

them. >> thank you. 7:26 a.m. in london. we will take a short break. futures are slightly positive. more on that when we come back. ♪

>> welcome back. 7:30 a.m. this thursday morning. having a look at the foreign exchange market. foreign be that exchange traders will have to reset their overall view on goes?the dollar actually last night we had the federal reserve minutes and you are seeing the dollar off a two-week low.

it cited dollar strength is being a risk to the u.s. economy. they cited the european economy as being a risk. there is this division is the has returned. could it be that we have lower rates for a longer time? be changing guidance might misinterpreted as a signal of fundamental shift in stance of policy. they do not want to run the risk of a taper tantrum or a bernanke havet and futures traders changed their mind. percentlihood of half a hike. shift on the thinking about the dollar. we are off a four-year high.

if you are seeing dollar weakness where is that coming through, that is to me through on the end. by .8 of 1%. a couple of big houses have some interpretation of what to do with your dollar yen trade. mura says a- no dollar yen level of 120. the spread, it is simple. the us read between two year government bonds and those of the japanese equivalent -- equivalent are widening. that difference makes you want to own dollar, not in. -- again. 110 or 120.

toeu leaders met in milan discuss ways to create jobs. while some progress is being made reforms are still needed in the euro area. in rome, the italian senate had a -- held a confidence vote. the prime minister's plans for a brand budget reforms one favor with the majority. confirm my personal ideas on the 3%. if there is a chance we will talk about it we will talk about it. i do not think we will talk about it over the next 15 days. will set theet law limit at 2.9%. >> that is a setback for jean-claude juncker. and slated for a vice president role.

coordinating energy policy but her candidacy was thrown out by two panels of lawmakers in the european parliament. the u.s. has announced enhanced screening for the ebola virus. passengers arriving at jfk will have their temperatures taken and asked if they have had contact with people infected with ebola. screenings begin this weekend. and expense for other u.s. airports next week. >> tesla is expected to announce another car model. sam grobart has the details. i if i am right and i think am the new model the will of be an upgraded version of their existing model less but not with one but two murders. one driving the rear wheels and

one driving the front. the new car will be faster, more powerful, more efficient and will continue efforts to bring fully electric vehicles to the masses. as far as the masses are concerned, there are a couple of ways to go. costs nearly $80,000, more than twice the average amount people spend on a new car in the u.s., adding an additional motor is not going to mean it is less expensive. much of the -- of the development of powertrains is happening in cars priced for the country club set. itsedes-benz darted selling the class electric drive. it looks like a toyota matrix but it could set you back or than $50,000. electric hatchback which may be small on the outside but big in the msrp. a fully loaded model to get you close to $60,000.

card check is like reaganomics. think of a major technological advance and the likelihood is it is based on an expensive model. newou're going to pioneer a technology it helps to pass the costs onto people who can afford it. over time the costs reduce and even apply that text to calls of -- cars of all prices which is tesla's plan. after the company releases a family-friendly crossover it is expected to announce a smaller sedan that will cost half the price of the model s. that will be the real breakthrough. how has the pound been faring peerst this major trading ? do not hold your breath. ♪

>> time for today's charts. in the last month or so attention was focused on how much the pound has declined against the dollar. it hit 60 on july 15.

sterling has fallen 6% to an 11 month low. saytegists like the one -- that is down to the dollar to the strength of the dollar more than the weakness of the sterling. that argument plays that when you look at this chart area this is how sterling has fared against its 31 major trading peers over the last month and as you can see, only the hungarian currency has risen against the pound. all the others from the chinese dollar, the hong kong dollar, the mexican peso, all the way down to the new zealand dollar and the russian ruble which has fallen 7.7 percent against the pound in the more to come?re options traders and strategists expect sterling to be one of the

developed world's best performers in the year. speculators turned bullish on the pound for the first time since they scottish referendum. one of the factors is all about rate expectations. there is a consensus the bank of england will raise rates before the ecb but when it comes to the feds, who will raise rates first? forward contracts suggest a 25 basis point hike from the bank of england in august. a couple of months ago investors were anticipating a rate hike. chance they will hike by september down from 68% before last night's fed minutes. by the 6% distracted decline.

sterling has shows risen against 30 of its major trading peers. good old sterling. orange cardseen the again. very nice. a great value. is uniqlo. parents are up for the company. it is the number one asian retailer. it has been making inroads in asia. this time around we saw sales up on 1% for the full year. profit not looking so nice, down

29% but the future looks bright for fast retailing. the weakness of the and is probably helping and the rapid drive for growth we have seen in greater china. some of the numbers they are saying are phenomenal. chinese sales up 67%. this is a company that is starting to turn itself around largely because the yen is helping but they are opening more stores. china,ve an opening in the u.s., and europe. fast retailing is owned by the -- a japanese billionaire. seeennan continues to losses. particularly expensive jeans.

but i think it is showing that this is a company that is likely to grow ¥100 billion in terms of what they see in terms of buffets. >> a pretty hefty jump. >> and it is the amount of growth they have seen overseas, the money they can bring home and the fact it will be worth when you bring the revenues into yen. they have been reducing to a certain degree in japan. this year not so good on the profit front and china seems to be the area where they are growing. he reclaimed his place as japan's richest person. got a target has of ¥5 trillion in sales by the year 2020. he wants to be the world's largest clothing retailer. it is 7:44 a.m. in london. let's talk about technology.

the annual ctech gadget show is underway. this is the smallest in 14 years. it has been overtaken. when it comes to strange gadgets japan still has the edge. >> ping-pong and giant robotic spiders. this is japan's annual gadget show. this robot is really a demonstration of how irobot can interact with the person in reality in an appropriate manner. >> it may appear intimidating it returns shots that are easy to play and sometimes deliberately missing. it is not intended for home use. >> in the future come a we envision this robot raps being used in a factory or production line and having a role in which he would have to interact with the worker to do or build something. this would involve the robot

understanding the needs of its counterpart and behaving appropriately. >> he cites the evermore sophisticated yet currently pointless robots, technology is -- most ofore stuff the floor space. its answerdisplaying to google glass. help with yourto golf swing without the need for multiple cameras. >> this is a sensing device developed and can take accurate measurements. this is one of our core devices. even if other companies wanted to develop something similar to it, i do not think anyone can do this very easily. >> while there is party of -- strange gadgets, this year's exhibition is the smallest yet with fewer than 550 exhibitors.

organizers say it is a sign that japan is moving away from developing new consumer products to the often more profitable business of supplying parts and service. looking at a live view of the city of london. equities said to open in 13 and a half minutes. ftsi futures up by 3/4 of 1%. it to believe rates will stay low but for how long? ♪

>> welcome back. the u.s. has announced enhanced screening for the ebola virus. passengers arriving at jfk from west africa will have their temperatures taken and will be contact with had an infected person with ebola. the world bank says that ebola may cost the west african nation more than $25 billion. estimated the has costs, they have a low, medium, and high register. in terms of how they assess

these. give us a sense of where the on ebolatradition is and the economic ramifications. >> i do not know the details of how they have worked this out but i am sure they have done a pretty good job. if you look at concentration it reminds -- remains highly focused. the impact is at the moment still likely to be limited. i am sure their scenario analysis builds out on whether this begins to spread into other african countries and impacting gdp and mining and the other industries that are effected. >> there are a number of drug companies who are working on this. ilm science shares take off -- saw its shares take off in terms of their involvement. >> there is a bunch of companies and as large as alexa smith

kline with the vaccine. th -- glaxosmithkline. we come up with the treatment and vaccine. from a financial perspective we have drawn a comparison to the smallpox contracts the u.s. is awarding. 800e is a contract out for million dollars. of dengueven the size fever and the way it spreads it is possible that you get contracts up to that sort of size but maybe not that big. it does not spread that fast. that is the way that we have used to come up with a possible estimate of, which this kind of the business side of this could be worth. tell us about the vaccine.

us to thee taken other big disease that is affecting potentially 50% of the world population are exposed. it is a mirror image of a bullet. a lot less lethal but anymore people are exposed. it is transferred by mosquitoes. china is seeing its worst outbreak in two decades. the clearly with the vaccine for dengue fever. that is a completely different story. we're scrambling to get a vaccine rapidly to market for ebola whereas sanofi has been working for 10 years to be -- on a vaccine for dengue fever. where the volatility has been all over the place as you well know. one of the few euro denominated large pharma companies and they seem to be suggesting that 2014

is the weakness of the euro we have started seeing in the recent months and that continues to be the case. the impact would be better than the thought. >> thank you for joining us. joining us from bloomberg intelligence. not long till the start of equity trading. future suggesting we will bounce a little bit as the post-fed statement. >> spanish yields are down and you're looking for yield of 2% on the spanish ten-year. we're down 200 basis points from the start of this year so it has been a big move. d is theth a capital interpretation of those minutes. the perception is they are worried about that timeline. they seem trapped by it and they do not want to remove it because they do not want to signal to the market that rates will go up quicker. there is a big column here as

well for the bank of england. if the fed are concerned about a slowdown of growth they're -- shouldn't the bank of england be as well? >> this is the point i was making earlier. theye the last meeting reckoned august and that has been pushed back. futures traders getting a little skittish in terms of when they see the rate hike. reaction in the equity markets is ridiculous. bad news again. >> german exports slumping since 2009. that is the key. >> i will put in something on the twitter account.

>> follow us on twitter. "on the move" is next. we will see you tomorrow. ♪

>> welcome to on the move. are moments away from the start of trading. bad news is good news. lower rates for longer. a skeptical investor asked the question about how much longer this can continue. it is decision day. no change of policies expected. do they remain on course to

being the first major central banks putting up interest rates? tol a slowdown put pressure put rates on hold for longer? more disappointing data. german exports flawed. there are record lows across the eurozone. look at the futures and the numbers. of.have the futures i read a beautiful piece of copy. momentum when it came to trajectory. frightens. are they frightened of their own shadow? are they frightened of what bonds could do to interest rates. that may hit the united states of america and that is the biggest threat of all. you mentioned