>> leaders meeting in the lawn for the first time since the crisis. >> stock selloff continues in asia. the biggest slide since april. markets pulled back as the fed suggests more qe. >> and slower advertising growth

means revenue estimates. reverse sales with a mobile launch. >> welcome to countdown. batrton. it has been a heck of a week. let's reflect back. the bond market. what a week. treasury bonds crashed down to 1.8% percent yield. and then they bounced again. where are yields going to go? do believe the federal reserve governor who shook the market. meansd maybe the data they should rethink the end of qe? growth globally.

deflation. why do bonds rally? there is a concern about growth. and a lack of inflation. sometimes, we try to make it a lot more, located. -- more complicated. something that has been weighing on oil prices. bouncing overnight. prices headed for their third weekly loss. correction in oil prices. we have data from the u.s. on stockpiles. 8.9.crease of that was against an estimate of 2.4 5 million. stockpiles, tilting up quicker than people thought. why? because production is running faster than people had exacted.

in the stats the most since june, 1985. bond markets in the were prevalent in equity as well. the s&p down 1.5%. a short-term shot of adrenaline. finished unchanged on the day. still down 2.3% for the week. longest losing run in three years. it has not corrected, though. it is down seven point 4% from the high. in europe, stocks have corrected, 11% earlier but they finished earlier than they were in the day. favorite stead of the day. the index in europe fell for the eighth consecutive day. the last time they fell for eight days -- black-eyed peas were number one. >> oh no. >> number one in 2003 with

"where is the love." >> i could probably sing that. >> we will save that till the end. from aimir putin flew in lawn peace talks with european union leaders. after he threatened to cut the supply of natural gas in ukraine. ryan chilcote cut up with putin and put the criticism he is that not doing enough. let's look at the exchange. ryan will be live from milan later in the day. with more on that story.

four minutes past six in london. >> let's talk to ryan. he caught up with the european commission president and asked how to ease tensions between russia and ukraine. >> i think it is good first of all that they speak. russianeginning, the reaction was not to recognize the legitimacy of the new elected president of ukraine. wehave been doing everything can to facilitate contacts between russia and ukraine. i'm going to meet president putin along with other leaders/ we will encourage steps they can do to scale down the tension in the region. interest of everybody to avoid this >> have you spoken to him? sense that there is an

opportunity for de-escalation? >> i think there is that opportunity if there is good well. we are not adjusted. the european union. and european countries are not interested in a comfort inn with russia. why should we? at the same time, we have questions it has to be clear that they respect the country like ukraine. we are doing everything we are -- the commission is promoting concrete steps. for example, negotiations on energy between russia and ukraine. >> next week, the eu weenimeets. is it too early to get rid of the sanctions? >> i cannot commit. my sense is the following. they asked them to prepare.

if we believe there is enough level of guarantee on the russian side, yes. at this moment, it is too soon to tell. >> what happens here in the lawn over the next day could determine what happens with these engines against russia. w of course -- could dteremine what happens with the sanctions against russia. >> of course. >> google showing its age. some 3% inas down after-hours trading. hans nichols's will break down the numbers. bad quarter? are you panicking? >> i am still googling. in some ways, this is growing

pains for a complete switching from desktop to mobile. even though facebook is younger, we have seen them make this awkward adolescent transition already. google eating their. -- when getting tehrthere. revenue from tablets and mobile devices is 30%. that is where we see the awkwardness. revenue at $13.17 billion. less than the estimates. but on some key metrics, there were concerns to read that may be why the stock was trading down in after-hours. we have revenue at 20%. 23% increase in the previous time. a little slow down. spendingny is clearly a lot, especially on new employees. 3000 new employees. that brings the total to 55,000.

when you look at what is happening on profit margins, they are down to 59%. they had been around the 60 range. on the upside, if you're looking for a case google has broken mobile,and understand if you look at the cost per click, it dropped only 2%. that gives you an indication maybe they are stabilizing. figuring out mobile. on the way to having a fully integrated mobile and desktop strategy. the number of employees they hired. was that the biggest prize? what was the biggest prize? >> employees was big. 3000 and a quarter. last quarter, 2500. that shows growth. capital spending, $2.4 billion. ift is 10 billion a year they stay at that rate. they are investing

in infrastructure for the cloud. they are not there in terms of customers. we want to be prepared. they are building infrastructure for the cloud. we will call this the umbrella strategy. make sure you have enough lumber was for when the cloud starts to rain -- have enough umbrellas for when the cloud starts to rain. >> hans nichols joins us from berlin. let's get breaking news. >> the third quarter, the swedish telecom group has missed estimates. tolysts estimating a move $4.2 billion. the sixth straight drop in net income. they have met net income estimates in 12 out of the last 15 quarters. currency haslocal decreased by 2% as well.

the last time we saw a revenue growth was in the third quarter of. 2012. forgood news is the outlook 2014 is unchanged. they are keeping the forecast for the margin on earnings to be little changed. 35% in 2013. and we will be talking to the chief executive about those results. don't miss that. and about 30 or so minutes. >> you can join the conversation on twitter. if you want to tell us how you managed to get through friday, that is where you will find us. after break, the eurozone in a liquidity trap. so says the pimco head of management in germany. he joins countdown after the break. ♪ >> time for today's company

news. goldman sachs was the worst performer on the dow. that is after the bank reported a decline in trading revenue in

the third quarter. the cfo said the decline was not a big issue even though competitors reported a rise in their trading revenue. eliminate plans to around 20% of their german workforce. that is according to people familiar with the matter. the redundancy is part of cost cutting plans following the completion of the $11 billion earlier this+ month. and singapore air was planning to boost their stakes in tiger air. they will purchase more of stock to boost its share. this came as tiger reportedly biggest lost ever. s. big moves in market

ashould investigate investors navigate the markets. pimco head of portfolio management in germany joins us. great to have you with us to try and help us through the meyer. -- mire. what a range. for bonds. 1.86% to higher. what is going on? >> good morning, manus. what we are seeing is a perfect storm. aecome a nation -- o combination of four things. the market is no longer in position to provide liquidity. there is that gap, the wedge liquidity and

fundamentals. loose monetary policy has pushed the gap. some valuations are extreme. ridges jewele concerns about qe. the fourth thing is a downward revision to global growth. you put those things together, a lot of repositioning on a market that is not in a position to absorb that repositioning to the same extent it was in the past. >> andrew, good to see you. this is anna. we were having a conversation to what extent the bond market was the tail wagging the dog. you send up what has been happening. how does that change whicat the fed is going to do? >> is making it difficult for the fed to get out of there qe. some of the comments from governors indicated this.

you filter through all the volatility in financial markets, the underlying strength in the u.s. labor markets, it looks reasonably intact. i would expect the fed to continue. i think they will be continuing at a cautious rate. that is being repriced into the market. >> andrew, i have to ask you. there's a piece on the bloomberg terminal. it quotes pimco and other institutions. credit is a buy, specifically high-yield. pimco, black rock are ready to feast on the debt. that is the headline. is that the -- are you ready to feast? >> [laughter] different people have different dietary references. one dynamic that is playing out -- there are lots of outflows

taking place in some sectors of the market. high-yield in particular. the front end, the shorter maturities of u.s. high-yield, are starting to look attractive. you are getting interesting yield levels relative to the spread duration risk you are taking. i think there are nice pickings to be seen. >> wendy expect the fed -- when do you expect the fed to h ike rates? >> i would stick with the center of next year. extreme increase in implied suggests the timing has been called into question. the underlying data are

reasonably on track for a firming of the economy, probably at a lower growth rate than was previously priced in. to the middle of next year as the center point, the most likely point for when the liftoff begins. >> andrew, you will stay with us. we are not going to let you go. you are going to join us in the next part of countdown. we are going to discuss the story that china might be set to move on rates. all that still to come. ♪ >> welcome back.

pimco'sthe head of portfolio management in germany, andrew. looking at the bond market. premium to hold the periphery is widening. nothe biggest risk the ecb doing enough for having the ability to do enough? is it the lack of liquidity you just reference at the start of the last interview? >> i think the biggest risk>> in the eurozone is none of the above. is on the political side.

is if thet risk fiscal agents do not push forward with their structural reforms, supply-side reforms. then we are going to have a problem. the debate about whether the budget deficit should be cut that is lessrrow, of an issue so long as these countries are implementing reforms that are going to get there rates of growth up. that is a storm in a teacup taking place in the national cities of the euro zone member states. it is less of an issue for financial markets. the risk is we are going to get the monetary arrow. the first arrow is going to be there. it is the third arrow to structural reforms that i am worried about. looking at the monetary arrow, what can you expect the ecb to

achieve? even when you do get qe? rates have been so low for so long in the eurozone. and yet the private sector has been deleveraging, taking unless that, not more. what can we expect qe to achieve? >> it will achieve two things. i rarely, it will increase the monetary base and the value of the euro. into thes going to be g-20 currency wars. that is the simple reality of what happens when you expand your balance sheet. everybody else has done it. why can't the ecb do it? and it will compress some of those risk premiums. the spreads, particularly in the longer ends. the combination is going to be, is it going to get unemployment

is down and growth up? no, but it will help. >> andrew, if we are going to move in the right direction, and potential currency wars what happene -- what with that due to the euro? this lower europe? where does a need to go to have an impact on the european growth story? question. very hard to answer. how further down it could go. it is probably not going to depreciate to the same extent that the dollar or pound depreciated when the central banks those countries embarked upon qe. the reason is the fact that the eurozone has a very large current account surplus. urale is a nat

appreciation strength. maybe we get down to a -- >> we are going to have to leave it there. great to have you with us. >> still to come, wine. ♪ >> you are welcome back to

"countdown." i am manus cranny. the dollar is little bit lower. the fx market, at the eight-month high. the dollar just coming off its initial spurt to the upside. it comes down to this. when do you believe rates in the u.s. will move? qe might be left on the table.

we have just spoken to pimco. they say rates will be hiked in the middle of 2015. a much more hawkish view. he said the hard data is good and he jobless numbers are good. perhaps we are all over aching the bowl -- over-egging the bull. an election in brazil. the polls arnett in that. in neck.ck a head to head on the polls at the moment. l hit a low. >> i am anna edwards. these are the top headlines. the world health organization under fire for its missteps after the ebola a break first attempted in june. -- detected in june.

putin in europe to face his critics. euhas begun meetings with leaders and milan, the first face to face talks since the ukraine crisis. he tells bloomberg u's always accused of doing something. nish by mr. about the cost of sanctions. >> russia gets hit the hardest. they are at zero growth. add to that, the price of oil. >> let's go to ryan chilcote standing by at the summit. would you have for us? -- what do you have for us? >> the biggest topic is the crisis in ukraine. it is overshadowing the summit. bywas meant to be discussed

two of the most powerful leaders in europe last night. they chancellor of germany and the president of russia. the d-dayt talk since celebrations on june the sixth. the meeting did not begin until 11:00 p.m.. president putin late in arriving from serbia where he oversaw a military parade. the leader did not emerge until 1:30 in the morning. i had a chance to ask him what he makes of the allegation he is not doing enough to resolve the crisis in ukraine. he told me quote i am always accused of doing something. have a listen. it was messy. russian]ing >> the russian president was driven away into the night for

more talks this morning. an hour.t and a half a breakfast hosted by the italian prime minister with the russian president and maybe the ukrainian president as well. the topic, ukraine. these meetings having one week -- happening one week before the eu meets to discuss sanctions with russia. perhaps this is an attempt to avert them be rid the prime minister of finland said it is too early. i also spoke exclusively with the president of the eu commission. expect me, we should not a break through. at europe does not want confrontation with russia. we talked about the market turmoil. he said as far as he is concerned, most of the peripheral countries are doing ok. have a listen.

this is key for our competitors. i believe it will be a big mistake to change the global reforms.s of the this is the key for europe's recovery. those who are doing better are those who have been pushing for the reforms. >> we heard a different message from the italian prime minister. he said there is a financial crisis out there, lingering on the horizon. the day before yesterday, he introduced a new budget plan for italy which calls for $18 million in tax cuts. something some in his party say is not sustainable. he had a message for brussels officials. it is timeor saying

to change the rules, given the financial situation. imagine, president barroso was not having any of it. >> at the summit in the lawn. >> -- in the lawn. -- in milan. >> if you have always wanted to a special bottle of wine, but did not want to spend thousands. here's technology that allows fine wines to be enjoyed by the glass. tell us how it works. it has been described as a medical device designed by arthur vader for prada. prada.h vader for

>> it uses a needle i originally designed for chemotherapy. needle has a sharp point that can pierce the cork, just like a normal bottle of medicine. removed,emoved -- is the cork reseal's. to do was to be able drink a glass of wine from any bottle without having to worry about the rest of the one going bad. >> this doesn't change the quality or taste of the wine et al.. >> -- at all. >> if the cork stays in place, oxidation does not happen. we displace the wine with an inert gas that does not react with wine at all. we have been doing lined tastings. -- blind tastings. they have not been able to hell etween aerence b

bottle that has been poured and one that has not. flex when you look at the -- wineen you look at the list, this will change how restaurants work and diners experience food and wine. >> i wanted to be a will to drink anymore and had in whatever quantity i wanted. about restaurants. but it has been one of the major uses of this. restaurants are able to serve anyone they help by the glass. >> would you like to demonstrate it to us? >> always. >> you can explain -- how long can you pour a glass in? >> there is water in their. >> it is early in the morning. >put a clamp on top of the bottle. push the needle through the

cork. tip it sideways. gas goes in. wine goes out. >> it's easier than opening a bottle. >> some people have told us that. especially with an older bottle. when i'm done, i tip my hand up and pull the needle out. >> how much does it cost? 69 pounds.ounds. -- 2 >> what are your margins? >> that is a great question. i will tell you this much. we are still not profitable. we are expanding globally. we started it in the u.s. in july last year. now we are launching in europe in the u.k.. to launchto france their next week. germany, spain, italy, and then hong kong. >> who will adopt this? is this sacrilege to a french

somalier? >> i would say california and london and even new york are the three most perceptive's markets -- receptive markets. it is amazing how many restaurants are serving great wine by the glass. wines,ve all these but they have been hesitant to serve them because they are expensive by the bottle. france's receptive but they are taking longer. the unexpected applications of orthopedics. i am amazed. >> thank you. >> the founder joining us today. >> coming up, the swedish telecom company focuses -- sharpens its investment focus. after the break. ♪ >> time for today's company

news. according to people familiar is valuedatter -- ee

at $90 billion. they have lost 37,000 customers. n ipo.all off plans for a one company preparing to take a step into the market is jimmy choo. the luxury shoemaker will begin trading at 140 pence. the bottom end of the range they were considering. starbucks is to offer paris says -- baristas better pay. workers will be offered to one free item of food per shift. expect to see looser dress codes. along with funky tattoos. joining us now for a first here on bloomberg is the ceo of

teliasonera. they queue for joining us. >> -- thank you for joining us. you had a small increase in adjusted. earnings what was the reason behind that -- what prompted the rise in earnings? the topu start from line, we have a stable development which is good in our markets. we have a growth in the consumer business in the nordics, which is positive. sweden and finland. the driver behind all the growth right now is the data, which is booming. 80% of volume growth. new pricing models. that is going through with good cost control. then we have associates that are

doing slightly worse than comparable quarters in our big holdings in turkey and russia. >> can you talk about more, sir, about a what is happening in russia? eurasia represents about 20% of your busines. s. i'm talking about turkey, russia, and some of the former soviet countries. are a 25% shareholder in russia. a company really well placed in russia. megaphone is a strong company. our operations and you raise a countries, weven are seeing 5% growth.

50% of margins in these countries. a great opportunity ahead with internet era, which we are investing for. >> we have to talk about yoga, your telephone company in spain. you are looking to sell it, having pulled it off the market for 15 months. how is the process going? how soon before you sell it? >> it is a beautiful little asset. thepeople, getting 7% of spanish market. down -- but they are stuck between the big boys, all going converge to. what we will keep fighting as long as we were -are there. giving the positioning and

convergence, we need to find a long-term solution. we are in that process and we will come back when we have some news. >> can you tell us who your are talking of to? orange and vodafone were in the running before? is it the same old characters who are interested? >> we know pretty much the characters we have around us. i won't go into any specific. it is a very interesting and we are have looking to capitalize on it one way or the other. >> you are buying a norwegian business to bolster your number two mobile position. worth of$3 billion cash. you have said you are denmark business -- in your denmark business lacks scale. does that mean you are ready to take out a danish competitor? >> that is an interesting fact. in europe. on it

we are a keen to be part of it one way or the other. solvee what we need is to the situation. i think we are ready to engage in key markets. >> if i can just ask you a general question if i may. a final question on the swedish economy. not beour viewers may aware. consumer prices fell for a second month in september. the fear is deflation might become entrenched in your country. how worried are you about the risks of deflation? in-flight -- entrenched deflation in your home country? ing,ell, generically speak lee,

deflation is not good for us or for many. we will keep watching the parameters right now. we don't feel it or see it in our customer base. obviously, there is a lot of discussion going on with -- about the economy. the new government is addressing this right now. let's see what happens. >> i have looked at your share price performance. since you became ceo. the shares are basically flat. the telecom sector as a whole is up by 13% in europe. how are you going to nero began up between you and the rest of the telecom sector -- going to narrow that gap between you and the rest of the telecom sector? >> capital markets -- we announced a big program going into the next couple of years, shaping a new generation telco. we are upping investments almost

a billion dollars. also, investing 2 billion swedish krona to get to a better cost space so we can get more efficient. i think we have a strong strategic framework to deliver on the shareholder expectation going into the future. >> thank you for joining us. good to chat with you on countdown. we will speak to you again next quarter. sweeting executive of -- sweden's biggest phone company teliasonera. >> the new teenager nude -- teenage mutant ninja turtles movie. ♪ >> welcome back to "countdown."

6:54 in london. what you have, hans? >> the cover, showing george washington making the peace sign. saying it is about the strength of the dollar. you can see how strong the dollar has appreciated. they are calling it a stimulus plan. the dollar has strengthened

almost 8% against the ruble. tioners want to spend euros. news for the nichols household that wants to say for children's education -- save for children's education. >> i thought i would go with the picture of the day. it is the queen of england along with prince philip in a sea of poppies. the last puppy will it be -- poppy will be planted on november 11. >> everybody who has seen it says it is amazing. here's a story on the front page. blament on the food. --

it on the food. we have circadian rhythms. that is how our bodies are in touch with the time of day. apparently, our got bacteria -- cteria also follows the same rhythm. this is according to research from israel. film.re is the new turtle teenage mutant ninja turtles. michael bay is behind this film. it is projected in three dime engines and acted in one is dreadful. >> it has made a fortune in the u.s.. almost $200 million. if you are a nine-year-old boy, this is dream bill. -- dreamville.

>> what about manchester united? >> very quickly, old pros -- >> you can hold court after the break. ♪ >> putin in europe to face his

critics. he meets with leaders for the first time since the crisis. he says, he is always accused of doing something. >> the stock selloff continues in asia. u.s. pulled back as more qe was suggested. and google misses profit and revenue targets. apple tries to release --

reverse falling ipad sales with its new model launch. hello, welcome to "countdown." >> i am manus cranny. >> i am anna edwards. time and london -- in london is 7:00. >> we had a revival last month after august figures for the lowest for the year. volkswagen and puget trying to reverse falling figures. the growth stronger since march -- which was the strongest since march helped lift sales to 9.1 million cars. the industry recovering from a two decade low last year.

the economy is slowing and the gdp inting forecasts for countries using the euro saying there is a risk of recession. german car dealers kept price rebates at the highest levels this year. the situation is difficult, but the numbers indicate we will not see an abrupt break down in sales. germany.n analyst in before the release of today's figures. >> let's turn our attention to geopolitics. putin and portugal in the spot putin in the spotlight in the lawn. -- you have been -- in milan. chasing leaders. >> the russian president and the

german chancellor in their first talks since june. the russian president was late getting in from serbia, where he was visiting the prime minister there. discussion about whether the meeting would even take place. but did not start until after 11:00 p.m. i had the opportunity to ask the russian president what he makes of the allegation he is not to resolve the crisis in ukraine. he said me, there is nothing new. not everybody wanted us there. it was a bit messy with the security guards. we still have the president's answer. >> [speaking russian] >> president putin got in his

stretch limousine and was whisked away into the night. he is on his way to a breakfast that will be attended to the the atelier in an british prime and wristers. the german chancellor. the ukrainian president. the president of the eu the president of the european commission. they are waiting for him, for the breakfast meeting to begin. who was supposed to start at 8:00 sharp -- it was supposed to start at 8:00 sharp. the topic is ukraine. this meeting happening before the eu discusses russian sanctions. thed a chance to speak to president of the european commission who told me, don't expect the crisis to get salt overnight -- solved overnight. the russianginning,

reaction was not to recognize the legitimacy of the president of ukraine. we have been doing everything we to to -- i am also going talk to president putin. we will encourage the steps they tensiono scale down the in the region. in the interests of everybody to record down the tension. >> have you spoken to him? >> several times but not today. >> do have the sense that there is an opportunity for de-escalation? >> if there is goodwill on the russian side. frankly, we are not interested. i can tell you openly. the european union. we are not interested in in a confrontation with russia. why should we be? >at the same time russians of

principle -- there are questions of printable. russia has to respect a sovereign country like ukraine. we are doing everything. the commission is promoting concrete steps in terms of negotiation on energy. we are -- early to get rid of the sanctions against russia? >> i cannot commit at this moment. >> what is your sense? >> my sense is that european countries asked the commission to prepare the sanctions. they are scalable and reversible. if we believe there is enough level of guarantee on the russian side, yes. that possibility is there. right now, too soon to tell. >> what happens here in milan over the next day could determine what happens to the sanctions against russia. >> of course.

i'm not expecting, if you want my opinion, spectacular breakthroughs today and tomorrow. >> i also have a chance to speak with the prime minister of finland. he told me the sanctions need to stay in place. the president of the european commission is supposed to make a special statement on ukraine within the hour. at 4:30 local time, we expect the erosion -- russian president to give a press conference. >> no better man to chase that story. ryan chilcote in the lawn -- milan. >> news on the ipo of jimmy choo, the maker of shoes and other luxury items. they have give us the offer price. 140 pence. the offer price has been coming down. there was talk about 180.

that was reduced to 140-160. now it has come at 140, what was expected. be 545.6t cap will million pounds. j aba luxury. >> just getting some news from royals royce, the engine maker not the carmaker. they have cut their sales forecast for 2014. it was for underlying revenue to be flat. to between 3.5% and 4%. it says customers rd laing and canceling orders -- customers cancelingng and orders. interesting statement from rolls-royce who provides engines

for the biggest jet in the world . >> this is very specifically about the revenue outlook. they are saying they might be able to make up some of the lost sales. >> is on the defense side that you guys are coming down, 15%. on the civil side, they are maintaining their guidance stop. it is marine and a defense. that is the backdrop to everything going on in terms of core europe. >> let's move on. intsche telekom and orange talks to sell their joined t venture, ee. detailsus now with more is the european deals reporter. we had a moment of déjà vu.

there was an offer but it was shelved read >> it has been a strong year for committee case communications ipos. no wonder they are trying as they did earlier. however, given the situation we stock markets, we don't expect a decision in the short-term. >> they can get rid of the asset in the market. but they want to go for it because markets could turn against them? >> they would like to proceed with the ipo because that would allow become buddies -- allow the committee to raise cash -- that would allow the companies to raise cash. selling the option of their partnership to a third player remains on the table. >> why doesn't one of them by

the other out? isn't that easier? >> that is what many people wonder. at the end of the day, they are big rivals in europe. that would create another advantage for one of the rivals. i think they are, you know, getting ready for action. what may happen remains to be seen. >> men well, thank you very much. nuel, a european deals reporter. >> chris joins us to break down the numbers. vival in cari sales. what is behind it? >> a lot of dealmaking. the fund only -- fundamentals in the industry are still kind of week. the tone was very cautious about europe.

even though a good number, 6.1% in europe is a good growth, the highest since march. but there is a lot of dealmaking going on. >> tell us about the dealmaking. we want the expects -- effects on discounts in europe. >> the deals and discounts. sales growth. that is what they need after a two decade low last year. margins in the auto industry are thin. if you cut some thing off the price, that means that are margins. it will be interesting to watch when european carmakers report next week at their earnings. also how the americans are doing in europe. they are all struggling. it is a market that is not out of the woods. >> thank you for joining us. chris ritter. >> still to come, investors are

confused. after the break. ♪ >> i am manus cranny.

it has been a week. big moves across the asset classes. toning us, welcome "countdown." there have been some violent moves in the markets. equities, bonds. you travel a lot. you say the huge institutions are confused and are starting to take money off the table. >> the confusion has been there since the second quarter of this year. when most asset classes have looked fairly or unreasonably valued. i would say beginning in july was the initial sell off. that would suggest there would be changes in prices. in simple terms, many would welcome the events of the last

two weeks. we are seeing the emergence of a clear develop -- direction where to put capital. >> part of the movement we are seeing and assets over the last few weeks has been a drop in the oil prices. a lot of the conversations around that a week ago were positive. of the tax on consumption. it's a plane out that way? >> good question. thatarrative has shifted this is pointing towards a slowdown. it has it is nuanced -- a nuanced impact on investors. from the u.s. perspective, it is broadly positive. it signals concerns about the strength of the global economy. nonetheless, it is a nuanced picture. we are beginning to see

opportunities in the energy sector, in the high-yield sector. particularly, we are think it about the e&p. debt sidetha shifting.yield bonds >> might these markets have -- some are in bear markets. greece, portugal. light we see further declines in october? >> october tends to be a harbinger of how the rest of the -- could markets go further? we have a sense they could. that said, we are not anticipating a substantial correction. that is where you can get liquidity. we have seen over the summer people moving out of high-yield.

investors in many pces need to achieve an income. high-yield is one of the better places to get it. when you look at the default environment, we are comfortable in the intermediate time being owners of high-yield. >> blackrock, pimco. we spoke with andrew who said everyone has a different diet. this reappraisal of risk and pricing, it may offer an opportunity in terms of asset allocation. as we believe it does. -- >> we believe it does, manus. on a simple credit basis, default are low. leverage is relatively under control in the high-yield and loan market.

profitability is robust. it is a decent environment for high-yield. >> stay tuned. another conversation after a short break on "countdown." ♪ >> welcome back to "countdown."

7:22 in london. we are back with our guest.

let's look at what we have learned about where the fed is heading. i have heard people talking about qe four. i we heading in that direction? commentsestions -- the were interesting. he was pointing us back to what the fed was saying. presentsition is to inflationand 6% -- 2% and 6% unemployment. broadly, about the view is about the data. >> you wouldn't buy treasuries would you? >> we would not be buying them right now. that is correct. what we are beginning to dip into the fringes is

emerging-market debt. there has been a widening. we are not doing that substantially parade we are sitting on a lot of cash. >> what are you waiting for? to put the cash to use? >> we are waiting for better valuations. if i think, equity bonds in simple terms, equities could get cheaper. we have been concerned about valuation for quite some time, especially in the u.s. you look at the measures, it is expensive. 14 multiple to a are less. that looks interesting. >> put that in context for me. people have been getting slightly distressed this week, and rightly so. we are seeing big moves on the s&p and europe. growth is intact.

you have a wee bit of extra insurance in terms of qe. why would you be -- >> that is a good question. some of it is phraseology. that isthink of -- relative to the index. the u.s. is over half the index. we have just over 40% in the u.s. we are substantially invested their. -- there. we are waiting for better opportunities to emerge. that is consistent for institutional investors. -- dowe think the dollar you think the dollar's rise has further to go? yes, we do. we think there is more room for appreciation of the dollar relative to the euro. we have a view that the ecb will be willing the euro down and

acting for that to happen. we expect the dollar to appreciate toward your end against the australian dollar. we are broadly positive on u.k. assets. the u.k. economic picture has been similar to the u.s.. the yield on u.k. equities looks attractive. overweight.tly and positive for the economy. >> how concerned are you about liquidity? >> liquidity is an anxiety, especially in the bond market. where many of us are aware that banks do not have the inventory they used to. there is a concern about being last in line. >> thank you. good to see you. quinn. >> coming up, back to the

victorian age. the u.k. workers are suffering the worst real earnings since the 1870's. is it time to get a pay raise in the u.k.? that is coming up next. ♪ >> 7:30 this friday morning in

london. how are fx traders looking at the world? the federal reserve governor spoke and muted the possibility he might have to reconsider ending qe. in might have to last longer. america is still growing but sometimes you need to cover risk. the dollar is lower. that at theoff of moment on the dollar index.

dollar is a little lower. fx volatility, combating -- coming back to the four. sincesen the most february three there is full to what he back in the market can one currency that could get marvel told is the -- could get more bullet hole -- vo latile is the real. presidents -- candidates are neck and neck in brazil. putting a little pressure on the real. that is what the chart is telling you. let's see how it opens later in the day. >> these are the bloomberg top headlines. the who under fire for missed steps after the ebola outbreak

was detected in late june. pork medications, underfunding -- affected the -- poor communications and underfunding affect the response. vladimir putin has begun meetings with the eu leaders in milan. he told bloomberg he is pulled always accused of doing something. the sanctions are costly to all of us. russia gets hit the hardest. they are growing at zero growth right now. at onto that a price of oil, which has tumbled 25%. has a search of its own to contend with. looking for ways to boost advertising sales. they missed estimates. their stock was down 3% in after-hours trading.

air international correspondent is in berlin. -- the international correspondent is in berlin. it for google to panic or not? >> maybe not panic. it is an older and richer company. 6-7 months ago. can they make the transition to mobile? ad sales are a third of all sales. remarkable growth. google is growing. their ad sales are up 20%. a little bit of a slowdown. spending a lot of money, especially on hiring. they have three cells and -- 3000 employees added. the overall revenue number around $13.1 billion. a $50 massive amount --

million mess. 60, a margins are under little lower. they don't break out their mobile numbers versus desktop numbers. you can get a sense of it on clicks per ad. how much that is dropping. the more drops, the more towards mobile. just at 2% this quarter. in the past, there have been some stabilization. maybe google is through these growing pains. they are figuring out mobile. eventually the numbers will stabilize and go back to stronger growth. >> hands, we will see you later. staying with tech as a theme, apple unveiled a range of ipads. they are trying to reverse falling sales of tablets with new models like the ipad.

it is just six millimeters thick. the ceo tim cook says the company now has the strongest lineup of products in history. >> this is the new ipad air to. wo. it is unbelievably gorgeous and look out that it is. can you even see it? [applause] [laughter] isthe trade union congress taking to the streets of london tomorrow with a demonstration asking for a pay raise across the public sector. kevin is here with us. good to see you. what is it exactly you want to see happen anyways situation in the u.k.? werem double -- demonstrating across the workforce. they have suffered the longest fall in real time spending since records began. government needs to recognize

people are struggling to make ends meet. and that private sector players need to give a pay rise. picks isn't it better to be -- >> isn't it better to be in a low paying job then none at all? >>. we welcome the growth and employment we also have to look at the quality of the jobs. that arending people getting -- a growth of the working poor and the u.k.. it is not just about employment growth. his about the quality -- it is about the quality of growth. >> i was reading a piece earlier in the week. public service versus private sector. with a nod to the public servants. their pensions are added in.

that white it's the differential 5000 pounds. it is a hard sell. the private sector has had less pay raises. see that kind of differential. this is from a well-respected think tank. the gap is 5000 pounds over the lifetime. >> the fact is public-sector workers who are better qualified and have more experience are better paid than people in the private sector for those without both occasions. we think the whole the economy needs decent jobs. >> one of the arguments that has thehed on wages is productivity conundrum. as mark was suggesting, one of the reasons we did not see unemployment drop as much as it

could have, wages went down. now productivity needs to rise. how do your members feel about that? did they feel it needs to happen quickly? we agree that productivity is important. sharing any benefits is something we are not seeing. we have seen the last year, the 10% but profits go up the share of wages go 1%. they have not gone up because of huge capital investment. they have gone up because workers are working more. toward to contribute that activity. -- productivity. they are not getting their fair share. seeing employees get a share of the profits. instead, chief executive ratio to pay has gone up 185 timre t -- times the average wage.

>> that is interesting. companies with high inequality between top pay and the rest of the staff actually pay less well. >> there is no link between paying fantastic sewers to chief executives. there is a link between treating the workforce fairly. >> are there structurally changes you want to see? either minimum wage -- bigger picture changes and terms of how wages are arrived at in the u.k.? >> we think there are huge sectors in the economy which could afford to pay more. we are not seen that coming through. there is a complete deregulation of the labor market. temporary contracts. massive growth in part-time and

self-employment. there are structural changes that could help not just workers but come but his benefit, too. >> we are going toave to leave it there. good luck with your event tomorrow in central london. of the trade union congress. >> you can join in our conversation on twitter. let us know what you think of the show. still to come, we had back to milan. we speak to the australian foreign minister. don't miss that interview. brian will be doing it for us after a short break. ♪ >> welcome back.

you believe global equities have lost trillions of dollars. it comes from this chart. the bloomberg world exchange market. all equities in the world, telly them together. total market. cap. we are talking trillions here.

as you can see from the chart, are valued ats almost $61 trillion. see where i have the red circle? third, it wasber $66.5 trillion. that means that $5.5 trillion of been wiped off the value global equities in a little under six weeks. we are thinking trillion dollars, that is just a number. the value of the u.s. equity market, the world's biggest, is 22 trillion dollars. the entire japanese stock market, the u.k. stock market, has disappeared in market cap terms in the last six weeks. if you think losing 5.5 chilean

2007-2009,big, from 35 chilean dollars was wiped off the values of global equities. trillion slump is nothing compared to that we saw between 2007-2009. >> i was just about to suggest a longer time horizon. >> i have written all that down. guess where you will see that. 8:00. >> you can have my notes. >> let's go back to milan. a reporter, ryan chilcote, is standing by with serious issues. chasing the political issues of the world. >> speaking with foreign

ministers. we are joined by julie bishop, yesterday and envoy. -- thank you for the australian envoy. i had a chance to speak with the russian president. shrugged off the accusation he is not accused of doing enough to solve the ukraine crisis. >> our concern is there has been a breach of ukraine's sovereignty by russia. we have been part of an international response imposing sanctions on russia. secondly, and as importantly, australia is credited about -- is concerned about the response to the downing of the malaysian airlines flight. we have been calling on russia to ensure there can be access to that crash site. that is not occurring.

there is a lot that russia can do to support the cease-fire in ukraine. which i understand has not been adhered to. the dutch led investigation team get onto the crash site. determine who is responsible for the killing of 298 innocent civilians. bring them to justice. russia has influence in that regard. n opportunityad a to speak with russian officials? >> yes, i spoke with the foreign minister yesterday. and raised our concerns. doubt about our attitude. i have made a number of statements, including at the security sounds all. this council. -- the security council.

that we need access to the crash site so investigators can search for the remains and investigate the cause of the crash. >> is there any doubt that ultimately russia is responsible for the downing of the flight? >> there is absolutely no doubt that it was shot down by a service to air missile by us and backed separatists. >> -- by russian backed separatists. your prime minister said when the russian premised comes to the g-20 meeting in australia, he intends to shirt face him. -- >> shirt front. >> this is a term we are learning from australian-based football. >> in football, it means in illegal hit. presumably, he was became an afford we. was speaking

metaphorically. what did he mean? >> he would mean that he would raise directly the concerns about what is going in ukraine. especially, the lack of access to the site held by russian backed rebels. asking him to use russia's influence to give access to the crash site. there are grieving families around the world waiting for the outcome of the investigation. >> your reaction to the comment that the russian leader is a judo expert? >> i am only concerned with their families -- the families who are suffering anguish and grief. my focus is making sure they can get onto the crash site. complete the job that they united nations resolution said would be provided.

a full, thorough investigation into the causes of the crash. >> fluorescence against russia. there are sanctions against russia. upup?they be ratcheted >> we don't have a significant trading relationship with russia. you are making a statement tha t we believe their statem -- behavior is acceptable. russia would not accept it if another country did it get them. -- to. -- did it to them. australianult, beef has been banned. y theyis extradorinaruy

chose the day of national mourning for the ban. decent meale a will be served. there is a robust agenda on jobs and growth. thereitive outcomes -- should be a positive outcome. envoy.alia's back to you/ . joining uscoate

from italy. some interesting commments around the uk rate environment. let's talk about markets. a bit of a late reversal. whether it was stocks or yields or commodities. fill me in on the commodities. still priced to head down for its third weekly loss. week oil prices a feature of what we are talking about. data on u.s. crude stockpiles, ramping up a bigger then people have expected. the administration confirms stockpiles grew by 8.9 2 million barrels. more than expected. we thought it would be 2.4 5 million. that is because production is going up.

today as thecting north sea did in the 1980's. a big new production source that has come on stream, not cutting back. production has increased the most sense june, 1980. >> this was evidenced yesterday after the comments. the s&p down 1.5%. it finished flat. down for the week. 7.5% below the september high. slump since the black-eyed peas in 2003. 11% below the june high. down 1.5% yesterday. that was my favorite black-eyed album.

>> just on the equities, we have had pimco on the show. saying to us, caches were investors are putting their money. cash is king at the moment. taking risk off the table. gains.fifth week of the longest winning streak since january. he did caution a little bit of insurance. is suggesting the fed should step up to the plate instead of reconsidering your position. the data supports that position. we have breaking headlines. johnny has joined us to talk about bank of england. baby we can have low rates for longer. -- maybe we can have low rates for longer. it doesn't have a vote.

he anticipates rates rising in the first quarter of next year. try to convince that the market trades on fundamentals. when they get a whiff of more qe and they go higher. the leakts like that, from yelling at dg 30 meeting -- yellen at the g 30 meeting. >> this goes back to the big argument. who is the dog and who is the tale? the fed to being bullied. i cannot believe that the federal reserve -- they just don't know how to raise rates. that's what they said yesterday. >> he said the bond rates will keep falling. >> if they do push back the rate you and keep qe on hold,

question the credibility of the policy makers. >> we will leave it with that. next. move" is will be stock route continue -- when the black-eyed peas were number one. ♪ you welcome to "on the move."

just minutes away from the start of trading. happy friday. qe4 ever. u.s. equities markets stabilize. -- he says thel central market should delay. policymakersngland says the recent data has made him gloomier and that interest rates may stay low for longer. .hat a week for an ipo

jimmy choo goes on sale for 140 pence a share. at theury shoemaker bottom as luxury goods makers report headwinds. equity markets swing violently. future starting to stabilize, pretty much flat. dax features higher by 36 points. manus cranny, four weeks of losses. >> are we going to get an update ? >> whether that holds true. you have a host of european voices speaking. that is possibly going to move markets as well. . am going to reflect back you want to go to mark barton's page. $500 trillion has been wiped out of equities. he put it beautifully. th