>> asian stocks climb. asa from china disappoints inflation cools. >> the slowdown in asia -- sales miss analysts estimates. the chinese are curbing their spending. usingdreds of police right gary use -- riot gear use pepper spray to disperse protesters in hong kong. >> and the semi conductor supplier reports results.

welcome to "countdown," i am anna edwards. we are getting some breaking numbers. let's bring in ryan chilcote. he has been pouring over the numbers. they make the machines that make the semi conductors. very interesting companies. far, a miss in terms of revenue for the third quarter. but their projection for the fourth quarter is actually improved from what it was. they were looking for 1.2 2 billion euros in the fourth quarter. now they are expecting 1.3. a slightly improved picture, confirming the full-year sales

guidance supported by what they say was a very solid backlog. >> also getting the net profit number. 244 million euros. >> pretty much smack in line. >> we are talking about the backlog as well, ryan. this is always the thing when we get into chips. they make the huge machines that make the chips. that's the key thing. >> we have some interesting information from intel, the biggest chip maker in the world. chips in four out of five computers in the world. in 98% of the servers. asml. customer of they were forecasting sales for this quarter of $14.7 billion. which is better than people were expecting. they beat in terms of third quarter, both earnings and

sales. that was a record when it came to sales. indication going into this was very positive, based on what intel had to say. to go further back, there was a big scare. >> what was the takeaway? we have had a number of companies report. micron reported and spoke to be chip sector. >> the scare last week was microchip technology, which missed in terms of its forecast. that got everybody concerned because they are a company where if you do not take their chips, and they sell to 80,000 of her companies, you can send the chip back. they give you a clean picture of what is going on in the market. in the past, they have been good at forecasting troughs. they were the first to call the trough in 2011.

when they missed, the market tanked. in general, if you look at tech stocks, they have vastly underperformed. what we are seeing today and yesterday with+++ a straight line picture. different things going on at different companies. >> we were saying, this is the canary in the coal mine. it was the precursor to big moves. >> down 14% since the highs and september. that's tight you what is coming up on the program. -- let's tell you what is coming

up on the program. we will talk to the intel head of europe, middle east, and africa. he will be doing us soon. >> producer prices in china fell again in september. sherry and is live in hong kong. his history repeating it -- sherry is live in hong kong. is history repeating itself? >> it is too soon to tell. dropping producer prices. the index dropped 1.8% from a year earlier. more than 1.2%, the drop scene and august. slowing demand is slashing demand. the data suggests the profit margins of companies will be further squeezed. puts pressure on their ability to pay back debts. the market had expected a smaller drop. umpo e seeing a property here in china. this is pushing down annual growth to the slowest pace since 1990. >> another look at the data, the

chinese economy is consuming inflation. how to the cpi data come in today? easing tor inflation the lowest since january, 2010. coming in at 1.6%. economists saying this was because of surprisingly low food during. the holidays. well below the government target of 3.5%. it means the government and central-bank have room for further stimulus measures. and analyst in singapore telling us they have very little appetite for more stimulus at this point. and the objective is to reign in credit expansion. last week, the governor was

withng us he will continue prudent monetary policy. as he expects inflation to stay mild. >> thanks. largest luxury goods maker recorded -- reported weaker revenue. let's get straight to a correspondent in paris. break the numbers down. there are one or two bright spots. fashion was a big mess -- miss? >> fashion, wines and spirits. these were our main concerns for dmh. a government crackdown in china on lavish spending. to prevent from giving gifts. that is having an impact. especially on sales of cognac.

in the wind and spirits -- in the wine and spirit divisions. big consumers of cognac. slowdown ino a fashion, which includes louis vuitton. grossshion division -- revenue of about 3%. missing estimates. popular amongis the chinese both at home and traveling. a luxury group that publishes the world luxury index, louis vuitton is the second most popular actually blend among -- look sure he brand among the chinese. day two.is they are building towards more,

a weakening picture in asia. some calling this the perfect storm, really. >> you are right. burglary -- bu rberry, expressing concerns about asia. things may not improve anytime soon because of the hong kong pro-democracy protests. that is impacting chinese spend during -- spending. we could see further impact in the fourth quarter according to the main. -- to bain. personal luxury products a growth would only be about 2% this year. >> when you look at the balance of products, watches and perfumes, that is where the growth elements are. will that be enough to counterbalance what we are seeing in terms of the asia

slowdown? knows, we don't exactly what the fourth quarter will show. whether it is going to confirm the slowdown in asia. the u.s. and europe seem to be enough to compensate for the slowdown in asia. the perfumes, as you mentioned, did really well. plus 8% in the first nine months of the year. the watches and jewelry division also growing. about 5%. the problem is perfumes and watches are not necessarily the biggest margins. they have a lower margins than the fashion. >> face for the roundup on the numbers. ," will speakntdown to the vice chairman of a luxury

trade group in italy. >> cures a phrase -- that you might here is a phrase that you might feel is over used. new normal. slower but steady for luxury. now to media. has been used many times before. if you want to talk about these things, the overuse of new normal, join us at twitter. >> after the break, we will talk to the chinese inflation figures. at they mean for the health of asia upon economy. asia's upon economy -- economy.

♪

>> time for today's company news. that is after the u.s. treasury department proposed changes designed to divest companies

locating overseas. the merger deal would cut the it would be the biggest ever tax and version if successful. have agreed to team up to create a cloud computing partnership. sap use the data centers to allow the german company to distribute software on a larger scale online. it will give them cloud revenue to make up for the declining demand for hardware, which has dragged down the sales in the past nine quarters. halo is exiting the north american market. the ceo says the app, which for andsers to pay order cabs, is too expensive.

it has struggled against rivals like uber. to on several new products. consumer price inflation came in at a 1.6%, just below estimates. fx, simon smith. prices declined for a 31st month. this highlighting the weakening in need to mastic side? the d -- in the domestic side? the demand-side? >> everyone knows that china will struggle to make the growth target for this year. no great surprise. you have the dilemma of wanting

to slow the economy and rebalance growth. you can do both at the same time to read rebalancing, -- same time. rebalancing, it takes years and years. that is the real challenge. we want china. what is going forward, more word is china cannot be the counterweight for what is going elsewhere. china was able to unpack the credit. problem now,the we don't have the counterbalance. >> the global growth environment is one factor will -- the fed has to consider. many people seem to be reevaluating their estimates. what clues are you getting as to when we will get that rate rise? our foreign markets telling you different? >> the two year at the u.s. has

collapsed. by the biggest amount for probably just over a year. the dollar reaction has been modest. on the counterbalance, the dollar should have a weakened further. -- a fearfulto environment where the dollar is gaining, i don't know. with the dollar correction, it has further to run. it is within a larger duller uptrend for sure. it is difficult to play that. how much risk you put on the table, for what could be a modest move in the dollar. >> the data we have had be read china today, the u.k. yesterday in terms of inflation. this is a big momentum in issue about inflation. it is hurting on a global stage.

what does that do to you in terms of looking at the foreign-exchange prism, in terms of how you trade that big move we are seeing? >> it is difficult. the interest rate stories got harder. qe, it isr days of like printing money. that dynamic has gotten weaker. weekw that change last when the fed came out and said, we are worried about europe. fed is now worrying about us. we saw the sentiment change. you have to look at the euro and ecb. the fact that we are in an deflationary environment. we get that dynamic now. the, the darrelle are -- dollar dynamic is dominant.

threat mean ation weaker currency? it makes it harder anyway. -- in a way. >> thank you. we will continue conversation after a short rake here on countdown. --short break here on "countdown ." ♪ >> welcome back.

i am mark barton. welcome back, simon. 6.1%.oyment in the u.k., has the -- does that change the argument of when the bank of england will raise interest rates? >> we have had a bit of volatility in inflation. this number, coming on the week likely toces, it is shift the picture a little more than some of the other numbers we have had. yes, it makes it hard. i think there's a decent chance it will rise before the election. environmentlow rate is causing more issues. higher.r basis point

number two, it is not going to kill us. >> you can see a situation where rates are hiked even though inflation is not at the target. we have one rate hike and then sit on it. >> you have to look at the bigger picture. the bank of england is looking to or three years ahead. -- two or three years ahead. it is not out of the question that they can hike inflation. >> is this about credibility? doney's utterances really move the market. his recent utterance was, get ready for a hike. he would be left with a credible he hike if something does not happen. y, has ay, -- carne credibility gap already from having spent the first year coming out with a forward guidance. february with lots of

different output gaps and slack measurements. already, there is a credibility gap in terms of -- >> i would call that dexterity us. >> talking about whether, or how the oil price plays in -- he couldn't have seen how the saudis would behave. a bear market in oil -- >> i take that point. putting forward guidance and then changing it. shoving it under the carpet because it has not worked to my mind. no one has the crystal ball. >> favorite cross, cross of the day. looking a high not, i would be looking at euro beyond that,ooking

i would be looking at euro sterling. looking for a correction higher. >> you think euro is going higher? >> short-term, i think there is room for that. look at where euro-dollar is going. >> give us something more exotic. >> how do you play china? people have said aussie dollar, lower. sell all the dollar -- sell aussie dollar. >> the old stories, ozzy -- au ssie is a prophecy for china. it still has a domestic story. the fact that the central bank once to see the currency lower for domestic reasons. >> simon, thank you very much for joining us. the chief economist at fx pro. >> after break, live to berlin as eric schmidt tries to cure --

fears about the search engine's .ominants -- dominance ♪

>> welcome back to countdown. let's take a look at how the foreign-exchange markets are changing best trading. -- how the foreign-exchange markets are trading. the beige book- will come out later. get ready for a stronger dollar. they wrote a 40 page of report. the dollar runs and eight year cycles.

you have a boom in domestic energy. look at sterling. we bounced off an 11 month low. marginally flat but is spiking a little higher. the trading session begins. we have a nine inflation. that is the reference. 1.2%. unemployment numbers, a rate of 6.1%. jobless rates expected to fall by 35%. eurou prefer to trade sterling, that will point to 80-50 on the trade. next these are the top headlines. president obama has met with military commanders from 21 countries for his treasury fighting the islamic state. --

strategy fighting the islamic state. stopping the- fighting. saving civilians from as occur we taking the muscle them -- from massacre.. ul dam.g the mos >> he announced the agreement where he met with the premier. lee is on a weeklong visit to europe. >> and protesters have been arrested as hong kong police stepped up efforts to clear barricades. code -- >> let's get details on the protesters. good morning, roslyn. what is the latest? so far today, the scenes in

the main protest site have been called although people are on alert because the police have said they might be clearing more sites today. overnight, some intense clashes between protesters and police. a tunnel and a road running in front of government offices on that side of where i am standing. the police used pepper spray. they tried to clear the roads. protesters had, over 100 of them, had put items on the road. s objective to keep the roads clear. they pushed back the protesters and failed. they tried again at 3:00 a.m., using pepper spray. some protesters using umbrellas to protect themselves from these brave.

-- from the spray. protesters were arrested. the strongest clashes we have pro-democracyhe protesters and police. dramatic pictures across the world. >> the china and hong kong liaise and office says the protests are illegal. what else did they say? the office has come out with strong words. kong's high level of economy cannot be an excuse to ignore or reject china's jurisdiction. they said china is concerned about the situation and called the protest a social and political incident. to and therotesters

protests to avoid conquest services -- consequences. they are not budging, saying they are determined to fight for democracy, a free chief executive of election. china's proposal to put forward a handful of candidates. with the roads cleared, slowly, theby bit, the power of protesters has diminished. the police say they will continue removing obstacles from the road. movingid they are not protesters, just barriers. once the barriers are gone, that means the protesters could be next. >> thank you. rosalynn reporting live from hong kong. of the anti-on google and is prepared to ask for new

rules on search algorithms. the ceo eric smith -- schmidt heard about the plans in a debate in berlin. hans nichols joins us from the german capital now. who won the debate? 't eric really wasn schmidt. if anything, it was the auto companies. they want a little support on the digital front. less a debate and more of a drubbing, an opportunity for the german government to present its case. it's reasoning for why the german public feel squeamish about google. mr. gabriel did talk about needing half a day to read through terms and conditions when deciding whether to agree to something. what they are talking about is an internet seal of approval. can see on aol you

webpage. they will ask the eu to come up with something. what it would denote is your data is not being scrubbed. all gore are not looking at it. they will not -- out guerrillas are not looking at it -- algorithms are not looking at it. >> really interesting. blows onland any another controversial issue? the so-called double irish? >> this was my favorite part of the debate. this is where it got -- saved her expect. -- eric schmidt. he said it was only the stupidity of the european union for failing to agree on common tax regimes. he used it as an example -- chance to ask question.

read my google newsfeed? eric schmidt says algorithms do. there is a tired really different -- there is a different view in germany. >> hans nichols joining us from berlin. >> coming up, the oil markets. the china and u.s. oversupply. will there be an emergency meeting? what is driving the markets? stay with us. ♪ >> time for today policy company

news. toyota has recalled 1.7 5 million vehicles vehicles worldwide. and hatchbackn are among those recalled. the carmaker says they are not aware of fires, crashes, or fatalities caused. rose atarter production rio tinto. the second biggest iron ore

exporter rejected a merger approach. the chief executive insists the company plans to give money back to shareholders. china is set to build its first world-class cruiseship. chinaal has aligned with for shipbuilding. they are exploring a partnership of cruiseish builder ships. nike's converse searching retailers -- suing retailers, selling them of knockoffs of their iconic shoes. shoesmpany says they sell that are confusingly similar imitations. >> let's talk about what is happening in commodity markets. a bear market. west texas near the lowest price

in two years. this as we got a forecast on-demand. joint goldd when wind -- jeremy gold wind joins us. we have been told this is a supply, and oversupply situation. weren't wanting to lose any market share so they were continuing to pump out oil. that all the sudden, people were worried about global demand. gloomy demand. >> it is a double whammy. some commodities are suffering from oversupply and reduced demand. oil is one of them. b you have the political games happening within opec. the rise of production in the

states. and we have this chronic oversupply. weak global demand. not a good picture. >> tell me how much the dollar you are one of the biggest commodity houses in the world. is that a discussion the clients are talking to you about? treasury secretary and fed talking about the strong dollar. how does it play out? >> there is the negative correlation between strong dollar and commodity prices. it also plays out with the liquidity game. has fueled qe commodity prices upwards over the last few years. both of those are factors. they have been a bit of a dampener on the commodity prices. the role of money and how it is played and where it goes as an investment is a factor.

we have seen some of the money move away from kunda these -- commodities. >> china is the big news today. inflation. coming in at a below expectations. china commodities is always this link. dig down deep or. you go to china. you know what is happening in china. what is the reality on the ground when it comes to commodities? >> to my and domestically has -- demand a domestically has been struggling. it is not disastrous. there is demand. and consumption of their. -- out there. you will see another reaction to the cpi figures. now the authorities have room to stimulate. that will drive commodities up. big picture, the commodities

that china needs to import, oil, it wille, continue to need them. story has not gone away. the markets will not collapsed to zero. >> if we are talking a lot a weaker growth in china, we talking about it weakening to the levels we have discussed? in terms of the overall economy? or are we talking about something that is a leica down? -- leica down? >> the real question is what is in the market. how much is in the market? a lot of it is in the market. oil is maybe an exception. perhaps we will go lower. we are almost there now. once it does go below 80, it impacts in different ways on

reduction to read it could lead to cuts in production, which will balance out the supply and demand picture. >> one of the topics we touch on in china is the reformation of the regime. we have had a big issue in the commodity market for copper and aluminum. being misrepresented. is that a one off? is this something which is more systemic? you go there and see the stockpiles come of it inventory manifest. if you look at the overall picture of the commodity import and trading world, shanghai dominates the majority of it. it is pre-well self regulated. is still the largest port in the world. the moneys involved are quite

large. that is different than some of the graft and corruption issues. luxury goods, etc.. there is another sub story there. it is affecting confidence and a demand and the sector. >> thank you for joining us. >> should we stay with the commodities space? a man we have spoken to many years, he is to go to another oil company. statoil, the norwegian oil company, has started a search for a new chief executive. that is big news.

the previous executive has been there since november, 2009. shares up by 7%. peers out performed his from 2009. that is a bit of a surprise. he has come on the show many times. >> he told us about his, the winter skiing. >> yes. >> we were talking about the winter olympics. he's a fan of cross-country skiing. he is a real character. >> the committee saying in the released today, is a privilege to lead statoil during 10 years >>. a company with highly experienced and confident employees. he led the company with the oil and gas division. president and ceo of statoil. in 2004.ver the role that is more than 10 years and some sort of leadership role at

this business. which is a long time. where is he going? >he has chosen to lead stat oil to take up the position of ceo for another company. >> no payoff is the message coming through. the board of directors, in response to the resignation, thank you tim for his great efforts. for his greatm efforts. international growth. strong development of the norwegian continental shelf. the best in the industry. have been strengthened. so says the chairman of the board. >> leaving on good terms. >> port is without -- doctors without borders. how they are reaching rural communities. that is in the new segment. ♪ >> welcome>> back.

i am marko you -- barton. >> i was reading a story that everybody should check out fighting theout

oil norwegian arctic. another oil company find it will pick -- finding oil in the arctic. it is commercial oil. oil issians thingk their commercial. the oil active in the arctic. have to watch that stock. barrel . they have been is pointing. former prime

minister. a terror case going on. a lot of it behind closed doors. the blairs mentioned as a potential target. the blairs, he had the address of the blairs. it looks like they are suggesting that part of the plan was the blairs might have been a target. you have to ask yourself how toh press they actually read reinforce our fears and how much is reality. >> she is a barrister. not a barista. >> is that my accident? >> we are unique in this country. the doctorl data --

will skype you now. a feature on the times. by doctorstechnology , particularly in rural communities. webcams wet campus -- and ipads into the homes of some with problem. it resulted in a 60% reduction in accident and emergency admissions. >> you know what? manus is in such a good mood because northern ireland beat greece. >> poland drew with scotland. >ireland, the republic of, drew against germany. great time for northern ireland. and the republic of ireland as well. it do join us on twitter. let us know what you think of the show.

last, but not least, his own page. countdown continues in the next hour. ♪ >> shakeup at stat.

>> slowdown in age a >> -- asia. the chinese are curbing their spending. >> and clashes in hong kong. hundreds of police all visitors -- police officers and pepper spray disperse protesters. welcome to the second hour of "countdown." >> i am manus cranny.

says they are reconsidering their recommendation to back the drugmaker's planned $55 billion acquisition of shire. the bloomberg intelligence division corresponded. why come back now and bring this on the front page? >> good morning to all of you. i can't help but when i read the detail of what they put out, this might sound a way for management to say, we want to tell the world we are listening to the u.s. government. we will reconsider the weather this means anything for our offer. we will leave it to the shareholders to decide. it seems to me they are trying to, i don't know what the best phrases, protect themselves. put themselves in the right place. put the ball in their court.

>> it is good we are here. we are getting some breaking news. >> shire says they should proceed with the deal. this is the banner headline from shire. it is interesting. you say there is a new wants in in thea nuance announcement. proceedg they should with the deal. the board will meet to consider the situation. >> they haven't said anything about what they will recommend. they said they will meet to see whether they should change the recommendation. they say, if we change the shareholdersn, will still decide about going ahead and doing the deal. >> what happens if it does not work out? >> than they have to play a break clause.

one would have to assume all the share price rises they have seen have to come back. >> reiterating that exact fact. saying -- >> it is in their letter they put out. you are going to spend all the time, management time and air freight and energy, you are going to have to pay for it. >> who will pursue shire? abbvie has to think about how to deal with a master drug. -- monster drug. , eventually there will be competition against the drug. >> just going to jump in to bring -- briefly viewers up-to-date. we were asking viewers where statoil's ceo is going?

he is going to a new company. i'm sure he will not be at home twiddling his funds -- thumbs. >> why there was no actual payoff. his told shareholder return for shareholders at statoil was 11%. cap -- the production grew from $1.1 million to $1.9 million. do question is, what will he at bg? going from one big energy company to another. >> everybody singing his praises. the same thing you read, manus. he has led the transformation into one of the leading oil and gas companies.

his decision to join bg group has been announced. he goes to bg. reportedt, intel third-quarter sales that beat estimates. fourth quarter may be testament as well. let's welcome the head, christian morales. >> let's talk about your region rather than the entirety. how did it fair in the last quarter? if we look at mature markets, europe, central europe has been strong. -- wern europe has been have been sustained, seen sustained growth.

overall, business has been strong. the business segment has been strong. also, sub-saharan africa is growing this is a region that is digitalized and quite fast. look more and more people that want to have access to the internet. >> many people have claimed the death of the pc. you are testimony to that eating a little bit too soon. the trend for out dating -- replacing outdated pcs, is that manifesting itself in europe? businessese confident enough to be spending on i.t.? >> you have a lot of pcs which are 4, 5, 6, 7 years old.

reinvention and innovation has taken place. they want access to the new devices. new user models. better security, privacy. fastve also moved very into mobility, which is what people one. within the pc category, you have books. two in one's. aspiringhat people are to have in terms of devices. >> you think businesses have the evidence -- confidence to invest? >> we have seen strong double-digit growth. now we see the consumer segment coming back. >> we talked a lot about the depreciation of the euro. how does that affect your business? >> we have not seen any material impact. -- gone through

several cycles. >> because you produce your chips here? >> they want access to new technologies. one of the things in the statement is the internet of things, which is growing. is a $9 billion business. you go out around europe. where are we with the internet of things? anna did a piece in the times on how we are going to use skype. what is coming through? what are the conversations? the firstoduced to microcontrollers. you would have a dashboard into a car. now the embedded products are getting connected to the internet. they become the internet of things. have new obligations.

i was with a health care organization in the u k they want to have more and more connectivity and relationship with their patients. you will have devices on your close that will monitor some of your important pieces of data they want to have on you for medical purposes. >> that is a gap, isn't it? 539 billion. i we being a little blind? -- are we being a little blind? >> we are talking about the devices of their on the internet. we will see anywhere between 30-50,000,000,000 dollars races -- 30-50,000,000,000 devices by 2050. connectivity will be great. >> you don't have as large a share as you would like.

you have been criticized for your share of tablets and smartphones. are you making inroads into that market? can you convince investors you are beginning to make big drive into that section? companiesket survey suggest we are the number two contributor to tablets in terms of cpu shipped inside tablets. we have shipped 15 million in the third quarter. we are on track to do 40 million for the year, a significant number. on smartphones, we are also in great smartphones. is going to be announced in the u.s. we have designed chips here in europe. whether it is inside a smart -- we are one of them.

we are in the semi final or final of the championship and we want to win. >> when will you be winning? >> give us another couple of years and we will be in great shape. >> how are you supposed to read some of the news you are getting out of the semi conductor industry? we got mostly upbeat news. intel had good numbers yesterday. with was a scare last week microchip technology, and in general a big selloff for tech stocks. give us your take. you have been working in the industry for years. >> tablets keep on growing. less than before but keep on growing. we are growing our contribution to tablets. smartphones keep on growing. the move is also a growing vector. and then the deployment of

infinite -- internet infrastructure. this is a very significant revenue generator for us. if you look at the networking that goes into it the data security and storage, all the footprint keeps increasing. this is needed to support the internet economy. long as we bring technologies to the market. >> the semi conductor index down 14%? i am sure you manage your business with a longer time horizon. a wise and witty so nervous? why are people so nervous is it just about china and emerging markets? emerging markets have been slow but they will come back.

you have people. africa, 1.5 billion people in the next 30 years. everybody wants to be connected to the internet and they want rate devices. -- great devices. same in china and the middle east and latin america. emerging markets will grow again. you go through cycles of adjustment like we are seeing. >> we applaud those upbeat sentiments on emerging markets and the internet of things. head.ian morales, intel's >> you can join the conversation on twitter. those are the handles. >> they certainly are. tell us what you think of the show, tell us anything. we might even reply. coming up, a look at the biggest challenge facing global central banks. stay with us. ♪ >> time for today's company

news. they are reconsidering their board -- recommendation to shareholders.

that is after the treasury department proposed changes to taxesws designed to lower for companies relocating overseas. a manager steve up the shakeup at statoil. the ceo has resigned. he will head up e.g. group. -- bg group. ibm and sap have agreed to team on a cloud computing partnership. sap to usewill allow it is center's two just to read its software on a larger scale online. the deal will give ibm cloud revenue to make up for the declining demand for hardware, which has dragged down sales over the last nine quarters.

hello exiting the north american market. to app which allows users pay for cabs with their smart phones is too expensive to advertise in the region. they struggle to compete against rivals like uber. theirays they will focus marketing in europe. >> the french julie maker is only 10 years old. they have caught the eye of major celebrities. they are competing with -- caroline hyde takes us on a tour of one of the brands -- of this brand. them, but yourh diamonds will never break. valerie was born into diamonds. her father has been importing

them from south africa for nearly half a century. >> i play with diamonds. by dad came back with diamonds instead of toys. he would play with diamonds. i have access to amazing stones thanks to him. >> it is yellow, brown, and green at the same time. >> this has allowed the french brand to control the transformation process from the uncut stone to the published jim. -- published gem. >> we have a look inside to check its purity. >> it goes from the rough diamond to the final cut. there is no middlemen. >> the final products range from 600 euros to several million. like this ring that just came out of the workshop. it is available in 50 countries,

but mainly distributed in department stores such as neiman marcus in the u.s. or harrods in the u.k.. she opened her first parisian store this year. she is betting her latest fan, will kick beyoncé, things up. quick she was wearing one of my rings. it was exciting to see her wearing this ring. it is amazing. >> the diamond was the star of the recent hollywood movie. she is hoping the beyoncé affect will make her store the first of many. paris.rg >> the news on chip companies does not and. -- end.

qualcomm, the u.s. company that buys wireless equipment, will bite a u.k. company for 1.5 billion pounds. 900 pence per share. they pioneered bluetooth wireless technology. they had been in preliminary discussions with microchip. that might not lead to an offer. it seems as if qualcomm has stepped in and made an offer for csr. ownoming up with their gloomy news. interesting to read today is the deadline for microchip to return with another offer. the times was speculating as to whether broadcom or apple might be interested in bidding. qualcomm, the name at the moment. >> rio tinto adds to a global

steel that is driving prices lower. more lax -- on that story next. ♪ >> welcome back to "countdown."

time in london is 24 minutes past seven. third-quarter production rose 13%. thank you for coming in.

rio has been the subject of some interest, proposals made. anything in the report that would make interesting reading? >> the iron or production numbers, another record quarter. interpreted that they are responding to public criticisms on a number of occasions. the referred to the iron ore expansion sir g -- strategy. that could be seen as a direct -- wasne of the reasons he interested was because of the decline and iron ore prices. the glad remains. especially when you see the production of iron ore rose. >> it is still very bearish. ast analysts are not seeing

light at the end of the tunnel. expansions coming upstream. in australia and brazil to lesser extent. >> talk to us about western australia. this.ave gotten into collusion one is one of the charges. what has the government said? >> he made some pretty stinging remarks in the western australian marla meant -- parliament. he said their strategy was flawed in terms of managing the world tries of a commodity. remember who your landlord is. you have to concede, by conceding production -- increasing production. the ceo responded in sydney, saying he did not know where he was coming from with the comments. >> thank you. see you later. >> who wants to be on tv? >> we do.

outfter the break, we find how video sites have made stars into bigger brands. how valuable is the you tube audience? stay with countdown for that discussion. ♪ >> morgan back to "countdown --

welcome back to "countdown." traders like the dollar this morning. a raising. dollar yen, a bit of a turnaround. rising for the second day in a row. we have the these book coming. let's look at euro dollar some days, it does not go your way rid there is the euro declining. generally, a dollar higher.

is,top line of the report the dollar is in an eight-year cycle. five more to go. saying that is probably how it will turn out. dollar sterling, waiting for the unemployment numbers. that is going to be on the back of weak inflation data. but have a look at dollar sterling. it bounced from an 11 month low. take it from me. the dollar index is a little bit stronger. let's get to the top stories. president obama has met with military countries from 21 countries to shore up support for his strategy fighting the islamic state. >> we have seen some important successes.

saving civilians from massacre. retaking the mosul dam. signedy and china have trade deals worth a billion euros.. -- 8 billion liaison a week long -- li is on a weeklong visit to europe. and producers have been arrested after chinese police in hong cleartepped up efforts to a roadway. the used pepper spray to disperse demonstrators. >> a little bit of breaking news earlier in the show. the ceo is to step down from statoil. taking the helm of another company which is going to be bg. this is a ceo that has delivered some still are returns. ryan chilcote has been looking

at some of them. give us some of the numbers. >> you have the numbers. i don't have them. >> this is the art of television. increased.on he had quite the tenure. he is pleased to be getting out of the oil industry, given what is going on. he has been going to gas. statoil says he will remain at their disposal until march. that is when he takes over at bg. one wonders to what extent he will just be a lame-duck. he will not continue on after that. overxisting head will take in an acting capacity. statoil is looking for a new ceo. g forced tom -- b

search for their third ceo in two years. cavity was forced to scrap a production forecast. we will be watching this from a statoil perspective and also a bg group perspective. to see if this moves either one. >> let's talk about italy. they are suffering the third of recession in six years. >> china, italy. for more, our italian bureau from along.us good morning. what is triggering the chinese investment? why italy? the chinese probably number one are looking to diversify their investments. huge foreign currency reserves. as you said, italy in the midst of another recession. that means there are some cheap deals around. dropped.has

property prices. they have come in and a big way. the prime minister announced $8 billion worth of deals. the big utility got one billion euros of financing. from the bank of china. company did a deal for 50 helicopters. they have been here in the last 18 months to two years. chinese funds own about 2% of some of the big names in italy, fiat. and the utility. >> what other deals could come out of this? europe summit? have beengest deals announced. it could delay the groundwork from some -- for some deals down

the road. he wants to carry out privatization plans. they are in the plan. opportunities to get some equity stakes and a big household names beyond that. is the small business climate, which is still weak. we have seen lots of mom and pop is this is being sold -- businesses being sold. >> thanks a lot. the italian bureau chief joining us from milan. 7:36. tipser it is exercise or on baking, the youtuber self made stars are wrecking up tens of millions of hit. want to surprise brands valuableto reach

demographics. thank you for joining us. tell us about how big brands use youtube. how they use the bloggers in particular. is that what you are here for? >> there is a recognition for brands that youtube has created a huge global audience. more than a billion people every month. they have managed to fuel the creative beast. tom bedroom superstars backyard george lucas's, there explosion ofge creativity. fromof which are coming the traditional media world. brands want to connect with the huge audience. on my regularn television and watch makeup and hair tips, but i can get taking shows -- baking shows

everywhere. it is howall new but it is being done. that is attracting a new audience. able to do isre choose exactly when and what they watch. the baking recipe is not what someone has chosen to show them. it is the one they need for their dinner party. >> there is the argument that lynn earlier -- linear television is coming to a tipping point. you had to convince advertisers to spend dollars on digital, mobile. they literally must be falling over themselves to buy products from you, space. is the they recognize growth in mobile is incredible. see on ourt we

platform. 50% of our views come on mobile and tablets. that is a huge change in how and where and when people are consuming content. we think we provide them with a great way to. do that. work in termsis of challenging other forms of media? >> what we are able to do is have a global platform they can go to. most advertising opportunities tend to be local or regional. youtube can be global. it can be more diverse in terms of where you can connect. there are limits in terms of what you could put onto a broadcast schedule, but there are no limits. you can go deeper. what you are seeing is brands integrating with the content creators. working together to create novel content. to build a brand content rather than advertising. >> have a social media fit in? your videoare how

content is shared as long as they are landing there somehow. whether it comes from facebook or twitter. >> the important thing about social media is it is a great distribution platform. if you look at some of the stars they are working hard to promote their content through a range of social networks. the reality is the distribution them to content. they build the hub on youtube. that is what brands are looking at. -- howcurious about it do you make things that are viral? much research goes into what works on digital. how do you -- party find the holy grail in terms of video to viral? >> i think the holy grail is the wrong thing to aim for. what brands are learning from the creators, it is a long-term

game that rewards persistence and sweat as much as inspiration and looking for the viral lift. what they are trying to do is build sustained audiences over time. a 50 subscribers rather than finding 5 million hits. we have less success finding the one viral hit then building a credible audience. >> to the audience stay with the stars? some of them have millions and millions of -- are they loyal? >> this is what is fascinating. we have people who have emerged from nowhere to become famous to the point where they have millions of subscribers. they expand beyond making videos. youtube a u2 star -- tioy star at the top of the amazon charts. many of the makeup and beauty stars have had children. they are making parenting content. the audience is also going

through the first flushes of -- >> i thought you were going to say makeup on their children. >> there is hope for us yet. anna, the whole i dea with her in the middle baking quiches. we will just be on the side. we will leave it there. youtube's head. thank you. >> 7:42 in london. we look at luxury's new normal. that is next. ♪

>> welcome back. time today -- for today's on the chart. the greek 10 year bond. it has been creeping back since early september. the trend has been a downward of one. if you exclude what has been september.ince 10 year yields rose above 7% for the first time since march. that is a day after euro area

finance ministers clashed over their desire to exit the bailout program to read the worry is among investors that greece will not be able to finance itself at sustainable rates without the support of regional partners. from greece's perspective, they wants to ease themselves of fiscal oversight by the likes of the eurozone. and the imf. it is fascinating. the 10 year yield has risen from five .6%, which itself was a four-year low. it reached a record high of 44% in 2010. trend is a down board one. the 10 year yield is two percentage points lower than the , right at the%

beginning of the year. greek a government securities have returned 19% through monday. trailing only portugal. n eye on the 10 year yield. perfect stormng a against the luxury sector? we will talk about that when we come back. ♪ >> welcome back to "countdown."

slow but steady. that is the new normal for the global luxury market. we are joined by the vice chairman from élan. -- thank you from -- from milan. thank you for coming to talk to us. slow but steady. is that the underlying message? >> yes. if we consider the last four years. and now the forecast for next exchangethe constant rates, we can go back to this oint a little later, we had

+5%. +5% in the current year. which is quite interesting and important. steady growth for us. >> what are the trends driving this, armando? aboute had brands talking chinese customers cutting back on spending. is that the big driver? to thes true that due frugality policy of the new government in china, the domestic purchases have been decreasing. sign in thenus current tier for the first time. luckily, for the industry, the

wealthy chinese people are used to buying the mystically -- domestically less than one third of what they buy globally. most of the purchases are bought outside china. with 29% in terms of nationalities, the chinese customer confirms to me the top nationality worldwide. fall by europeans and americans. >> -- followed by the europeans and americans. >> it is interested that you are analyzing sales based on who is buying and not where they are buying read the chinese in london. what trends are you seeing in those groups when they are traveling? all the and china, markets in the world are

impacted by the shopping. tourist shopping. this is quite new but growing fast in the u.s. thoughtfirst time, he the past three or four years, the u.s. is becoming a target terms of purchases. i believe the reasons for such impact for tourist shopping is because for two hanging reasons. the fact that they have a longer they are more relaxed. mightcond is most of them try something that has been conceived in a certain place. when they are in italy, they i and we have you had asked him to

-- women are in italy -- when italy, they buy products. provide -- di pyramid. pyramid, buter a an hourglass. accessible luxury has been uiising, even if it challenged.

>> thank you for joining us. let's talk about the stories. shareholders at 900 pounds a share. that is more than the shares could rise. shire, when you actually read through the statement of the reconsidering, the last call i down 15-20%. they are saying, go ahead and do your deal. there is a breakup fee of $1.6 billion involved. there are a lot of hedge funds involved. >> plenty of reason to watch oil. we have seen a bear market. the top.at leaving statoil to become the loss at bg. unemployment data today.

it could be the lowest in six years. next. the move" is we will see you soon. ♪ >> welcome to "on the move."

busy morning. reconsidering a plan to back the drugmakers acquisition of scheier. it could fall 10%. we will be discussing the german slowdown. in benchmark is down 10% just under a month. how should german policymakers

respond. it is job stay for the u.k. the latest jobs numbers are due, but with the euro arguably on the brink of recession, is an early rate hike hitting harder and harder to justify? plenty of news through the morning. here is what futures look like. futures in london the lower by almost a third of 1%. the dax is pretty flat. this is a very busy morning, isn't it? >> it is indeed. thing or two about energy. markets are pushing back estimates on when the united kingdom will go for their first rate hike. now looking at august. they said, be prepared for the credibility gap increase from mark carney and hikes in the united kingdom to come a b