>> stocks rebound. asian equity rise following the steepest u.s. rally in a year. speculators thinking ecb stimulus is on the way. >> marissa mayer hits back. -- sales as threats top estimates. >> can heineken go it alone? the brewer set to report sales since the miller takeover bid last month. >> welcome to "countdown."

asian stocks followed through on one of the biggest rallies of the year in the u.s. stock market. ofis a compilation speculation by the ecb and bonds and results are beating estimates. the cash markets moved briskly yesterday. s&p up 1.2%, the biggest rally since 2013. it is around the flea money concept. the little bit of paring back for u.s. equity futures. i love the u.s. title about volatility. panic departs from u.s. equity market. sharpest drop in volatility since 2009. the past three weeks have been for not. bank of america speculating that equity stock by another 10%. >> it mimics what happened with 11%fed when we had an

decline in 2010 and 60% in 2011. >> best-performing markets in the year, hong kong. >> it is somebody's bar chart today. >> there you go. transport is driving this market. it is up by 11% and it has rebounded with a heck of a pace in the past six days. 30 airline stocks. estimates at 13%, beating them. volatility is down and oil. investors are buying oil. >> stocks are rising. 2000,ked about the rough the small cap stocks are up 6%. they are down 6% since september 12 but they are coming back. davidson was up more

than 7%. i.t caught my some of the newer models -- i picture some of you guys on harley davidson's. >> [laughter] >> interesting guy to -- interesting way to start my wednesday. yahoos on the upside with sales and profit rising. this is melissa mayer about the tax impacts of the ella bob a stake and there are some calls to split the company. here is caroline hyde. >> pretty good. third-quarter sales up 1.25%. small increase in sales. they beat on sales. profit up 53% if you are looking at earnings-per-share. net profit got a real uptick because of the sale of alibaba, up 2000%, no less. they have more than one billion ands to combine yahoo.com

tumblr, a blogging site it. last year. the mobile products seem to be showing momentum. the old bread and butter, the ad sales, the display ads, sales are still declining down by 5%. facebook and google eating into the market share. what is interesting is the conference call. melissa mayer is back on the offensive. she is saying i am proud. look at the activity i have brought. look at the turnaround, the progress we are making in the clear strategy. trying to hit equity head on. >> one in particular, although she did not mention their name. >> she did not. this all because of star board value. smithcalled jeff using the tactic of open letters , writing down criticism. he has called for yahoo! to be split into two. have yahoo.com the main business in one area and split off the

stakes in the asian companies that he feels are probably more valuable than the entirety of yahoo!'s $40 billion so far. that is alibaba, the chinese equivalent of ebay, the huge e-commerce company that they sold a small stake in and still have 15% up. yahoo! japan as well. he feels you should separate those off. why? tax issues. sell worried that when you the stakes in the companies, you will have to take a huge hits in terms of tax. he is worried notably about whether the money would be used, spending more on acquisitions. they have try to already tackle the fact that yes, we do realize we have paid a lot of tax this time around for the sale of alibaba, but next time around we have the best brains on it already. we have those looking, trying to make sure we do not pay as much tax. approximately $6 billion and

after taxes, we have committed to return at least half of that capital, $3 billion to shareholders. >> $6 billion after taxes. they actually got $9 billion. 1/3 off for taxes. you can see why people are concerned. she is trying to answer hurt critics. sorting out the acquisition issue. she feels her strategy has been key. maybe a few will be worried about techcrunch reporting. buy anuld be looking to ad tech company for $700 million. they spent $300 million on flurry. he could invest in snapchat. she is key on the acquisition trail, but she wants to tackle activation activists on time and seeing revenue in a cautious but continuous way. >> heineken releasing

third-quarter results in just under an hour. the world's third-biggest beer maker rebuffed sa miller. will they remain independent? heineken0, it is about finding a good show sales growth. the estimate is 1.5%. that is a consolidated number. analysts say it will be tough, if for no other reason that europe is a big market or them. europeans are drinking less. and in july and august, the weather was not good. you have problems in central and eastern europe. we just heard from carlsberg in the last 24 hours saying the biggest brewery in russia's working at 50% capacity. heineken has its own share of brands in the company. the onus is on heineken this time because of sab miller's offer in early september. they said, why don't we buy you, the heineken family?

no thanks.said we can find the sales growth on her own and give our investors you. investors value. 7:00 will be the first but i'm sure will not be the last. home, isent their staff understand. where in terms of africa sales, what is the hit of ebola? >> i don't think it is a massive issue for the bottom line of the company overall or top line. today we will get sales figures. it is surprising that heineken of its sales from africa and the middle east. i have not seen a breakup for sierra leone itself. it is extraordinary, the impact ebola has had already. heineken has a brewery there. they own and 83% stake. they do good sales and all of the staff has been sent home on pay. the distributor network is

massive in sierra leone. 24,000 people in sierra leone in danger of losing their jobs while this disease rages through the area because basically, sales down, the company saying something like 70% in the region. let's have a skeleton staff and do what we can. that leaves a lot of people hanging. >> bloomberg intelligence has a number on africa. this is africa, the sales of leone, liberia, sierra total beverage market, $708 million in 2013. it is perhaps overblown in the banner headline. >> it is important because it is a high profit area, a new market. their share is 14%. the share of their total sales is 14% this year, up from 13% last year. they are ratcheting up. this is where they sell stuff like sorghum beer, coming in on the cheap then, trying to get

people off the homebrew. try to monetize their beer habits by giving them sorghum beer, which is a less expensive beer. is if youhing here were sitting and sab miller, what are you doing at 7:00 a.m. if you are the ceo of that company? you made the one offer. you did not say he would not come back. >> stay with us. cfo ivan calvik speaks with "on the move" later. >> lettuce know what you think. he is running up those ranks. he is heading for 1000. ♪

for company news. daimler has sold its stake in

tesla. it says it is receiving about $780 million from the sale of 3.9% stake. it will continue to buy components from tesla. and electric bergen of the d-class will be released next month. more than 2 billion euros -- that is according to people familiar. siemens had plans to sell hearing aids, but it is not looking to sell a private equity firm. vestal -- in billionaire investor carl icon says europe has "major problems." >> i think europe has major problems. we own countries there. -- we own companies there.

western europe is a real problem. there is a little bit about what we talk with atlantic city. you have to get realistic. >> the bank of england publishes minutes from the policy meeting. it kept the british benchmark rates on hold at a record low .5%. we are joined by kevin adams. thank you very much for coming in. the vogue for a. is that likely to have changed or is 2-7 what we will get again? >> i think it is where we stay. the two who are looking for rate rises seem entrenched in that view and frankly, i think they are probably right. the ranger, including the bank'' officials stay the same.

comments seem to change on a daily basis if they stay on unchanged rates until august. >> energy prices are dropping. petrol prices possibly finding. this could cause mark carney to have to write a letter. this would be a huge change, wouldn't it? writing a letter to expand why they have underperformed on inflation. prices, are they top of the agenda or look through? >> they should look through and the bank probably will look through them. we have seen examples where they have written letters where the inflation rate has overshot the target at 3%. the rate is likely to be undershot. just as it did when it was overshot, they will look through the enterprises and supermarket price wars and discounting that is going on. lead to a 1% inflation rate. when wedoes it lead to

think the rate hike will be and what does that lead for investing? , and theears to me official statement suggests that it puts out the rate hike. economy isew, the moving along reasonably well in the u.k. growth is decent. employment is improving. the unemployment rate is coming down. no sign of inflation. that gives the bank of england every reason not to put up rates , as early as perhaps the rest of the economy would justify. bond investors can put out the first interest rate rise, which means -- >> is that hard for you? >> it does, particularly the fact the forward guidance that mark carney made so much play of when he arrived from canada just over a year ago seems to be completely worthless. at one moment, they are guiding towards higher rates sooner and the next, unchanged rates.

the chief economist was saying he was disappointed with growth and saying on sunday, maybe things were not that bad. the concept of forward guidance seems to be tarnished. >> looking at the economy more broadly, thinking about when and where we will see wage inflation's come through. we have figures showing the chancellor will have to borrow for that he wanted to borrow at this stage of the cycle. taxes are not going in the way that he wants. headache is this becoming? >> undoubtedly it is the governor. the tax revenue is consistently undershooting. >> the economy is recovering so well. a classic boom recovery. it is a recovery about a lot more jobs, but most of those in the lower-paid area. that is not generate a lot of tax revenue. extent -- while

consumer expenditure is ok, it is not booming. not much increased revenue. there are hotspots of wage inflation, where there are shortages. in general, the labor force and they can expand sufficiently easily. you will not -- the lower paid jobs not suffer from the inflation. >> stay right there. ♪

>> i think there is a lot of reason to be very disturbed about the long-run trajectory of the american economy and what it means going forward. u.s. treasuryrmer secretary larry summers speaking to bloomberg, airing his concerns about the world's largest economy. is kevin adams. summersg to larry worried about the long-term projector he -- trajectory, janet yellen came out and said, don't worry. the economy will grow at 3%. we have consumer prices today.

treasuries headed for the biggest rally since january. try to make sense of it for us. the treasury market is with saw personified. >> it was extraordinary. that is supposed to be the most liquid securities instrument in the world. it moves by that much in one day? is extraordinary. some of that is due to the investment bank balance sheets are constrained and they are no longer transfers of risk for the market. >> i did read that because of the liquidity, that is why we saw the effect playing out there. when times are uncertain, people so what they can and not necessarily what they want to. if the market is liquid, that is how you will get the buyers. >> if we look at the big picture , and a lot of investors are moving to corporate ons and they may be hedging that position with treasury bonds and suddenly they are cut the wrong way.

the treasury market hedges are moving against them and they have to get into the liquid part of that transaction, that is re-buying bonds a previously shorted. that is a very ugly position. possibly halted the end of tapering, delay the end? that seems to be what he was suggesting last week. could they delay the end? would it matter? they are ind, but the last the saloon in terms of stopping their qe program and entering their taping -- sorry, not ending their tapering. what is the point? i think it sends a message, but you can send that message verbally. you can give a commitment to keep rates unchanged. not necessarily for a long amount of time, but for one year.

back 24 hours us to the chart. government securities outperformed stocks in october by the most in two years. trader,a fixed-income where do you want to be positioned? -- the ecb is said to be in the market. where do you want to be in a fixed-income space? >> the degree of uncertainty is heightened at the moment. having really strong views is very difficult. let's be frank. the macro economies are not driving bull markets. if you look at what has happened over the last three months in the u.s. economy, it has grown ok. the u.s. dollar has reacted positively, which is a logical conclusion from higher rates in the u.s. but lower rates in europe. the bond market has gone in the

opposite direction. it is oblivious to what would be rational economic analysis. the currency markets seem to be restless. have you do with that as a bond investor? it is tough. you can have views on the bond market, but you can't have them with a great degree of conviction. you probably look to have stronger conviction views on position. bonds toimmediate longer. >> the average yield on october the 15th -- in june, it was 5.7%. time to jump back into high-yield? who is going to buy high-yield when all the sellers run for the exit? bloomberg had a great story on that today. >> there has been a lot of money that have gone into high-yield funds, especially in the u.s.. they are now beginning to see outflows. we have seen a large rise in the yield on investment bonds and from that point of view.

>> thank you for joining us this morning. >> it is 6:26. brazil's presidential election has been rocked by a billion-dollar money-laundering investigation. ♪

>> welcome back. time for our foreign exchange check. we are going to kick it off with the euro-dollar. we have got some data over the next couple days in terms of manufacturing and services. that is going to drive the agenda. six/10 of 1%. in new york.to us he said to sell the euro.

a simple message. sources tell us there was also speculation about considering corporate debt. that was denied. the point was the next step was happening in the bond market in europe. keep in ion that. services could contract for the first time in 16 months in europe. services could be the lowest since january. the currency dropped the most among emerging market based. the equity market dropped by 3%. they are virtually neck and supports --auce these markets get more and more concern. volatility is the highest in three months.

barclays has a note that it doesn't matter who wins the election. are the top headlines. the world health organization says first result from any of ebola vaccine are set. they may begin in january. a mass initially be evacuation. visitingouls, who was north korea as a tourist, was detained after a bible was found in his hotel room. the u.s. is continuing to press north korea for the release of prisoners. american and the owner of the los angeles clippers and the a's franchise. he purchased the company for a record $2 billion. he was previously ceo of microsoft for 14 years.

>> i probably would have started this hardware earlier so we could be more effective in the phone business. this is like an iq test. businesscrosoft have a in the phone business. we were the number one most profitable in a long time. two guys past this. watch the full interview on bloomberg. >> the economy and corruption are top of the political agenda for voters. the state-run energy company brought allegations of mismanagement. we are joined by the chairman and chief executive officer. good morning. thank you for joining me. the polls are neck and neck. they are showing it is going to be a tight contest going into the weekend. what do you think? what does business need here?

who is better for the economy? >> i think what mostly brazil is economics. president webe the have to have a change because the last four years has taken ,nto consideration what changed what is going on in the international market. brazil definitely has to change the model of economics. scandal, wet the have seen the extra finery chief on television confessing to a corruption scandal, money being company,off from the paying political bribes. this has gripped the nation we are told. how much is this sticking to the

election campaign? how much is this sticking to the current administration? >> it is simple. it is a national institution more than a company. when you have to face something corruption, it comes creates athing that bad climate for investment in brazil, for investment outside brazil, and for the political spectrum. for an him in a conference today in the building. a conference -- m& today in the building. within the oil industry itself, it is a huge opportunity. hugel has some of the most

natural resources in the world. is that one of the cornerstones of investment we should be looking at? >> very well. elections ins that a democracy like you have and we this changesl, every four years. brazil is an economy of $2.4 trillion is not subject just to a presidential action or four years. if we made a mistake in four years, we could correct on that. the investments are very important. onyou take what has happened the stock exchange, it reflects speculation also. a lot of people just waiting for polls,ls to bet on the

but when you take big companies volkswagen bought for 11 years, we made our plans to invest for a long time, so i felt this is not the history of the country. not long-term investments in brazil. >> i gather there is a divided household. >> this is true. >> it is a lovely story. you have to sons. one is affiliated with one of the candidates. one is affiliated with the other. tell us how. >> we are just hedging our bets. friend ofa childhood nevada's -- nevez. >> the other is a childhood friend of the coalition. i come back later on.

>> dinner on sunday can be a van full -- can be eventful. thank you very much. a rare and delicious piece of news for italians as they face economic gloom. the price of white truffles has fallen 48% on the back of a umper harvest. >> the hunt for a precious commodity. finally, after hours of searching through northern italy, a stroke of luck. for this well-trained italian pointer, the unmistakable smell gives it away. truffle hunters most treasured prize. it is a delicacy that and we said -- in recent weeks has become a lot more affordable thanks to a dramatic fall in

prices. aavy summer rain has led to 30% increase in the truffles compared to the same time last year. 100 grams of this currently comes in around 220 euros. that is down from 350 euros in 2013 and 500 euros in 2012. a cheaper white truffle means more buyers, cutprice meals, and a jump in visitors to the annual market. >> the local economy is dependent on the truffle business. we counted for every euro spent, tourists spend 20 more euros in the area. the real income comes from tourism, not truffle sales. >> they hope to push beyond traditional markets, another boost to demand for the sought-after delicacy. on emerging markets like this phil, china, india, and vietnam

become interesting. they will soon see why truffle in the same light they now see caviar. in the meantime they are making the most of the cheaper treat. >> that's it. truffles all around. we have had a glut. risottore going to make . >> that is the wrong kind of truffle. the dangers of google. >> after the break there is another -- we have a preview of the bank of england david how all. stay with us for that discussion.

>> time for today's company news. they may start selling more organic food with a bid to sell sales at the world's largest restaurant chain. afternouncement came mcdonald's pointed same store sales declined for a fourth straight quarter.

compare that to the mexican restaurant chipotle. it stores jumped 20% last quarter. investors focused on forward guidance. the stock finished 7% down. the second biggest loser in new york was coca-cola. it has a raised its gains. its figures dropping after third-quarter sales missed estimates, declining from a year earlier. the world's biggest beverage sluggishfacing international growth and health concerns. thee will find out what bank of england's monetary policy is inking. the minutes of the meeting will be released. the minutes reveal who on the panel chose to keep rates at a record low of 0.5%. .erhaps

david joins us now. the consent is they are still calling possibly for hikes. airing someonomist different views. what do you reckon? >> people think this is going to continue. in globaldecline growth. it has weighed on the minds of the two. recent comments suggest he is going to vote for a rate hike. if there is any surprise that may be that ian mccafferty decided it is not time to raise rates. the consensus indicated the most likely outcome is another month or two. is one of consensus the reasons could be what is happening to inflation.

inflation is 1.2%. how is it possible there are members pushing for a rate rise in the inflation environment because of what the supermarkets are doing is so low? >> exactly, it is a surprise, but really it is better to raise rates now when it should be done slowly and gradually been in the future, which could be destabilizing. who have been more hawkish phil eventually the sharp incline in unemployment is going to bleed into wage growth, even though we haven't seen that so far. when inflations is around 1%, when you are 1% away from your target as well, that can't have been done too many times among central banks across the globe. when you are 1% below your inflation target, do you really raise rates?

i would love to know a study of how many times that has been done. >> it is very limited. when you look at the u.k., when inflation fears more than 1% from its target, the governor is obligated, so what mervyn king did has never had to be done for the downside. this is the first time that may have to be done in coming months, especially with the decline in oil. >> you sent me a note yesterday, which is five years. the ecb is focused on five years time. that has tripled. that is not the case in the u.k. it is certainly not the case in the united states of america. we have inflation expectations. >> which is what it is. >> it clearly says in the u.k. things are not that tragic. >> if you look at long-term

inflation expectations, the u.k. is at the top of the list when looking at the u.s. and japan. one thing that is more concerning is when you look at inflation for government bonds, which show average inflation for 10 years as opposed to five years time, that is more a measure of short-term expectation -- they have come down a little bit. that helps the doves. >> are these minutes obsolete? remind us what has happened since the meeting took place in the decision was made. we have seen a lot of turmoil in financial markets. does that mean these are less relevant? >> to a sense, yes. the members may have had that last night. the other major thing is the

decline in equity markets last and the associated downgrade in expectations for global growth. it does put into question how relevant they are. >> good to see you. thanks for coming in. minutes.bout today's .> coming up, it is 6:49 are you getting your moneys worth when you dine in for brunch? who better to answer that question then manus cranny?

>> welcome back. the time in london is 6:52. what have we got? >> runge should be banned -- brunch should be banned. i love the little eggs benedict. breakfast or lunch costs you a fortune. this is what we used to do. 20 years ago. fine.ld be

that is near here. down ourbe dribbling chins. >> that is how you start the weekend. and it is cheaper than a separate breakfast or a second lunch. what have you got? >> back to the future. film?ed to love the now if you go to kickstart her, this is a prototype. in 2015.being launched that is the day in the film when in a hover board race. this company is looking to raise $250,000 in development.

to using magnetic propelling. you are being held over the ground. at the moment you need to be above certain things. you will be able to skim over the surface. >> you couldn't skim over the lake. away, and he went over the lake. when you go over water it doesn't work. >> we found you out. picked up various places. commission that will release its report today. shares the commission.

the great city of the north -- how it is going to be put together. he has gotten away with words. is quite as if it good of a break. gaps trying to close the between london and the rest of the country. it taps into a big trend with more calls for evolution -- for devolution. the chancellor is talking about the northern powerhouse. >> i am not sure how any of it will work. >> that is the point. he is saying it is incumbent on these northern cities to work together if they want to make it a success. >> and the growth between the regions? >> they are basically talking

about the amount of growth they have seen in london. ranking some of them fall. >> manchester city went to moscow. it's cold empty stadium. they have been banned from because of the racist incident. they were winning. they got two points after three games. they are two points behind. >> how can you sneak in manchester united? >> i don't think i can. rome, --t unit the beat rome. >> are they going to pay their fans back? which one recently lost and said they would be repaying. >> sunderland was saying, we will pay you back. >> all the fans came.

>> countdown continues in the next hour. we have got a little bit of earnings. peugeot numbers. stay with us for that. we will see how these equity markets affect the open. ♪

>> stocks rebound following the steepest rally in years. stimulus is on the way. >> marissa mayer head back. yahoo! sales top estimates. the chief executive tells activists, i have got this. can heineken go it alone? the takeover bid last month.

>> welcome to "countdown." --we have raking results raking results from heineken. ryan has joined us on set. how is it looking? >> it is all about sales growth. they have come up short at 0.7%. they were looking for 1.5. sales growth is so important. they rebuffed the offer and said, we can deliver sales growth on our own, yet today they are missing expectations. here is another number. beer volume up 0.1%. we are not talking about big numbers. you never get big numbers. you are talking about or worse whose main market is western europe. heineken looking like they are going to have a rough day today.

they are going to stick with their outlook. that is unchanged. that is welcome. saless. in terms of growth in particular, if you look at the range, that is definitely in the lower range for expectations. 0.4 was the lowest of the 11 analysts we spoke with. interesting because it is one set of earnings. miller can exploit one group of numbers, and the heineken family is well entrenched. >> why did they fall? >> one is money. they get $100 million per year in dividends alone. they have got plenty of money. look at charlene heineken, she is worth just under $10 billion. how much is sab miller going to

offer to make her feel more wealthy? she has quite a bit already. i think that is what analysts say. everybody has their price. this is a family that has controlled heineken for 150 years. the guy said it up by buying every in amsterdam in 1864. she has her son on board. the husband has been on board for 18 years. they are doing very well. you may remember it was her father 20 years ago who was kidnapped. on revenue, they have missed as well. versus 5.25. another miss. they say premium brands rise 3%.

i am not sure how meaningful that is. heineken.rning for this is a family that has done very well. this is a brand that has no need to sell, but it is going to have some trouble explaining how they are going to find the sales growth. >> should we talk peugeot citroen. it has posted a surprising increase in sales for the third quarter because of growth in the home region. that is the euro. growth in china more than making up the decline. i will give you the headline figures before we pop off to paris. , beating estimates. a couple of headlines worth telling you about. the company has cut its forecast. forecast.sed this

it has raised its forecast up to four or 5%. what it takes away with one hand it gives away with the other. woman who will make sense of these numbers. caroline is in paris with the details. i have given you the headline figure. what are your thoughts? peugeot may be seeing the light at the end of the tunnel. their first half it in three years. mentioning, we have to be careful with these numbers, because we are very contracted between the different regions. in europe they had 7% of delivery in the third quarter, but in their home market of france it was just 0.5% of growth.

china they are doing really well with their chinese partner, which owns 14% of peugeot. they have launched their luxury , that they china want to make separate. in russia and latin america it is not looking good at all. -62% in the eurasian region that includes russia. even though the chinese and european numbers are offsetting has to beion, peugeot careful with the future. >> we will leave it there. thank you for joining us. salest has just released that did rise unexpectedly. >> let talk about what is

happening at home retail group. we have some numbers from that company. it looks as if the pretax numbers are below estimates. pretax profit has come in at 39 million pounds. they are saying they are starting a three-year itductivity plan, cutting around 25% by the end of the four-year. they seen to say christmas as key to the outcome. they have said pretax profit will be aligned with estimates. they are not downgrading their estimates. they are suggesting the performance around christmas is going to be key as to whether that outcome does materialize. all eyes down. sales and profits rising.

calm concerns about the alibaba stake and calls by some to split the company into. let's talk about the numbers. lot, doesn't sound like a but many felt sales would decrease. .his is a real change you have got sales rising. you have got profit rising. percent increase. they cashed in on the selling of an alibaba state. you can hear from the managing executive of how much money will be going to investors. approximately $6 billion. we will return at least half of that to shareholders. >> re-billion to shareholders. you have more than one billion people on a monthly basis using

than! or tumbler, and more half of that are using it monthly via mobile. this is where the momentum looks to be. this is carrying weight on the bottom line. the old bread and butter of yahoo! is not looking that good. display ads are losing 5%. fundamentals.ng marissa mayer says, i am proud. >> she is trying to back away criticism. there has been a series of acquisitions. the whole criticism about mobile, she is battling away in that space, but it is a tough one. >> there is a lot of criticism. they have a certain activist

investor. he has raised two key issues. he is saying, spent this company into. if you cash in on alibaba, they hold 15%. also yahoo! and japan. spending money on acquisitions we don't see as marissa mayer's was trying to fight back. taxes, we pay too much. they are getting the greatest minds. minimize.rying to also, in terms of acquisitions they are trying to say it is working. they are saying it has got a

great start already. they wanted to be youtube. it is not as well used as interest and some of the other it is media sites, but gaining value. we are seeing on the voice. they are trying to build up momentum. interesting whether we see more acquisitions. we understand the block is saying it could he spending $700 million on a tech company. , who wasmarissa mayer has got to be she aware that activist investors are on her case. she is trying to tackle them right now. >> with some ad execs, she was apologetic. she was criticized for that.

>> he needs advertising. this is where they have been losing out to google. she has been apologetic, trying to answer criticism. >> caroline, thanks. we will see you later. join us on twitter. let us know what you think about the show. tell us the story you want to hear about. marcan watch us today at kbartontv. >> coming up glaxosmithkline are going to be reporting numbers later. our next guest says the company remains under pressure. the investment director joins us next.

>> you are very welcome back. time for company news. tyler says it has received $780 million for its stake -- daimler says it has received $780

million for its state. an electric version will be launched next month. kaiser is exploring a sale of the hearing aid business for more than 2 billion euros according to people familiar with the matter. now they are looking at a sale. the private equity firm is said to be the front runner. the billionaire investor carl icahn says europe as major problems. >> i think europe has major problems. we own companies there. what is a little bit of talked about in atlantic city. you have to get realistic. >> one european company in the spotlight. third-quartere results are released later.

to talk about that, we are joined by the london and capital investor director. how have you been over the last week with this market volatility ? >> i think clients obviously ask what is going on. >> what are the underlying reasons? >> i think the biggest and with the expectation for the interest rate rises has been too eager. thetually they have to push interest rate cycle further out. what we are seeing is we have seen five-year lows in u.k., china, india, and so on. there is a tightening going on in the sense the real interest is rising if inflation is going down. we have seen oil prices reacting

quickly to the slight decline in global growth expectations. pressure on the need to raise interest rates. in the u.s. we have seen the u.s. dollar has been following, which is a tightening taking place. there is no need for the fed to double the tightening by bringing interest rates lower. once you begin to price and the , you get the free pricing. it is going to wash through. what we have seen is the recoveries have begun. ifwouldn't be surprising most of the quarter has recovered. >> a sense of the verge of between the central banks is perhaps overdone as we come towards the end of 2014. might it be a theme next year?

>> that is a wonderful question. i think it is the main source of the volatility in the market base. i would expect volatility is to be higher going forward because you have the bank of england and the fed further tightening. ecb and the bank of japan further loosening. the fact is in a globalized into one monetary flows all of the different economies. now they are going to get very conflicting messages. part of the world is trying to tighten. part is loosening. you're going to get huge volatility. it is going to create chaos. the ecb needs to react much faster than the fed because inflationary pressure in europe is building much faster.

the problem is momentum has slowed down quite dramatically. we are very close to seeing no growth and probably a recession if you are not careful, which is then going to cascade into the banking sector. it has an impact on nonperforming loans as well. >> you are we using the word chaos. you're using the words of virgins. you are saying we need to get rid -- ready for rapid volatility. clear is the higher risk spectrum of each of the asset markets are going to be at the cutting-edge in terms of volatility. if you look at the high yield, it is clear you are getting very near to another default cycle, so you are going to get extreme volatility. ofn if you look at the parts , you are seeing

extreme volatility. the assets appear to be cheap, but they could get a lot cheaper. >> we will continue our conversation after the break. thank you very much. you are watching "countdown." ♪

>> welcome back.

in london. we are back with the capital director. we talked about the broad picture before the break. glaxo one of the businesses in were today concerned about the growth is coming from for this business. bei have seen it is going to a lackluster growth for a couple it gets rid of some of it. they need to do cost-cutting. nothing on the horizon in the next couple years. what you are looking at is a pretty boring, stable company, but it needs to reduce the costs and have lower difficulty in china and elsewhere. some of those are not clearing away. we have a new chairman and so

on. >> they were not boring. stable and boring can be good if it is dividends you look after. >> there is sufficient cash flow coming in to support the dividends. int is where the uncertainty the marketplace has been. there has been enough people saying the dividend is under threat. i think that is cautious in terms of cuts. i think we will be ok for now. >> you had me running for my hardhat. i would take stability over the chaos. you said there were some large cap industries. an idea of what the industry groups are, and why should we take the risk if there is chaos ahead? oni think we should focus

indices that are able to deliver. expect the best we can in the environment we are in with low demand as well. that means you need to look at consumer staples. too many other pharmaceuticals and so forth of this world. ito i think even though slows significantly, it is going to grow, and emerging markets are going to grow as well. you look at large cap manufacturing companies and some of the defense companies, which are continuing to grow at a steady pace. sectors one needs to be very careful about. some of the oil industries are going to be under attack, given over the lasting

couple of years. moving, fact we are they have to continue to raise capital. >> thanks for joining us. stay with us. ♪

>> you are very welcome. it has just gone 7:30. foreign exchange traders are looking at the euro and trying to make a decision. it was yesterday's discussion going to drive the euro lower. ?ould the ecb get involved the euro is down over the past two trading days. david pepper spoke to bloomberg. he said simply put, let's not

contaminate the message. sell the euro. was the ecb involved in the bond market? would they buy corporate jet? if it is looks as setting up for the next leg of the move. data will help push the market forward tomorrow with manufacturing possibly contracting for the first time in 16 months. surfaces possibly the lowest since january. we are just off the lows of the day. a little later we will look at brazil. it is one of the biggest movers in the markets. dropped against emerging markets. if it doesn't matter, every time we get these poll results showing them neck and neck.

time you get a call, markets go into a spasm. volatility is at a three-year high. he says, do not worry. it doesn't matter that the brazilian real is going down anyway. >> these are the top stories. ministers in russia and ukraine have failed to reach an agreement on gas trade. talks broke down after russia insisted they you provide funding to help pay outstanding ukrainian bills. the ministers meet next week to help resolve the stalemate. the world health organization says result from an ebola trial are expected in december. the organization says incinations may begin january. there won't initially be a mass vaccination. north korea has released one of the three north american attain

these. aftery foul was detained having a bible in his hotel room. the u.s. is continuing to press north korea for the release of other north american prisoners. steve ballmer has been talking to charlie rose. he is the owner of the l.a. clippers and purchased the team in august for a record $2 billion. he was previously ceo of microsoft. >> are the things i would do differently? i would have started this earlier so we could be more effective in the phone business. should we be in the phone business? we were the number one most profitable for a long time. two guys passed us. apple and samsung. >> you can watch that tonight on bloomberg. >> we caught up with

the black rug ceo -- blackrock ceo. market volatility wasn't necessarily a bad thing. >> markets need corrections. corrections are healthy. you can just go up and up. >> except it was corrected. now we are where we were before. >> we had a 7% correction from the high to the low. correction. that a it weeded out the excesses. the markets were on more stable ground. earnings are validating stock prices. ifa long-term investor somebody is focusing on their retirement, i would be buying equities. >> for more on market volatility we are joined by the foreign exchange strategist. about thelking

brazilian election. it doesn't matter who wins. the real heading lower. is that true or not? >> i tend to agree. some investors are a lot more focused on the short-term. on election focus results. of course it is a digital outcome. lot,arket seems to favor a given the economic challenges, the fiscal challenges to the economy. brazil has been trading over two years under the strict intervention framework. we are off the commodities cycle. china is not beating the commodities. brazil will have basically to look for a new equilibrium level. with theum will be met

currencies. >> looking at the drivers, are you looking at the fed and what they are doing? what is driving so many emerging markets? >> i think we have egg groups. big groups. it is very important. we have central europe trading very strong. we have government bonds. on the back of expectations of these measures. i think it is a great trade. you have the commodity in terms of shifts.

we are not there anymore. look at the average brazilian 1990h between 1991 and nine or 2000. a different ballgame. i think many economies are in this bracket. profit is there. chile is there. peru may be there. some of the companies may struggle with balances. people are not freaking out about china growth anymore. we know chinese growth is rebalancing. there is a problem for commodities. >> if you take that discussion about china, there are two things. one is the commodities super cycle. what does china's rebalancing to -- do? credits orhave

economies. they are in the supply chain. they are not missed -- not necessarily selling iron ore, but they are in the supply chain. ofre is a little bit softening. we might see some implications. in korea you might be there. general exporting in the emerging markets. it has a lot to do with performance in asia. it is coming down. underperforming. nothing compared to what we have seen in the past years. it is trading softer. korea is a serious problem. if you talk about korea it is very strict on the fiscal side. they have room, but they are not doing it.

they have been stubborn, and part of the rates have been on downward pressure. >> on the subject of policy rates, we have gone five minutes talking about emerging markets without talking about the fed. we didn't think of it. expectations are being pushed out. surely that is good. >> that is funny. we have a client that takes 45 minutes. >> the fact expectations have been pushed back, probably for rate hikes in the u.s., what does it mean? >> i think it is the best four weeks. shift in terms of expectations. you see that in euro-dollar futures.

the markets pretty much wiped -- maybe too hikes are scheduled for next year. we are eventually pointing to the probability of a hike in september of next year. that is a massive shift for the markets. the markets will be looking for opportunities in emerging markets. >> give us two. >> i do like south africa, given the commodities cycle and given this economy is still in an output gap. they are struggling with higher output. >> we're going to have to leave the conversation there. always good to have you. strategistg markets at citigroup. >> the chief executive of lehman's has a 2 billion euro choice. should he offer chairs in one of the company's valuable divisions

or go for a straight sale? more on that next.

>> time for today's check.

at 2:35 a.m.he car and theret bloomberg, was a story telling me about the best-performing stock market in october. you know the hang seng index, the benchmark index in hong kong. that really surprised me. i showed you how it fared in the beginning of october. encapsulatest enveloped markets, and i would look at the portuguese index, since it is the worst performing . it is not a big rise, but it is arise. it is up almost 1%. the psi 20 in portugal is down by almost 10%. in october so far out of 24 developed markets, only to have

actually risen. wendy to have fallen. australia and hong kong. i thought, how could this be the case. we have had the worst unrest since the 1960's. the hang seng yesterday is trading at 10 times earnings, which is the lowest multiple among the worlds major developed markets. among the protests, investors have been talking about the impact on hong kong businesses. when you dig deeper, firms that get the majority of sales from hong kong make up about 13% of the hang seng index. those that rely on china make up 54%. the majority are more reliant on china than they are on hong kong. impacts of says the the protests are reflected in equities prices. investment management sees shanghai.trading with

the final fact, since the 22,est began on september the hang seng is down by 4.2%. index is down 5%. the hang seng has outperformed since the beginning of the process. the global stock market indicated. fascinating stuff. it is amazing what you discover. see that again. >> how did you manage to sit on that? >> you said it. >> how markets are to discount. europe's largest engineering company women's is said to be in talks to sell its hearing aid business for more than 2 billion euros according to people familiar with the matter. aaron is with us now. thank you for continuing to talk to us.

why is he selling this hearing aid business? it is only 2 billion. why are they selling it? of thes a small part entire company. if you look at what he is trying wants to focus on power equipment, turbines, the big machines, and peripheral aids, hes like hearing wants to exit those kinds of businesses, and that is why he wants to sell hearing aids. >> why have they switched? we have been reading the story. they wanted to go for an ipo. do you get better value? has the climate changed? it has changed. >> they have. inhave seen 24 ipos get cold the last few weeks. during a listing in the current environment is very difficult.

exitns is looking for an that is safer. there has always been parties.ng strategic they have been trying to sell this since 2010. i have been trying to buy this for a long time. >> who is going to buy it? >> it looks like the swedes. they say the private equity firm is the front runner. it is by no means a done deal. they look like they have a bit of a head start, and they are going to get it done according to our people. >> what kind of valuations are we talking about? we are talking about 2 billion euros. is that the ticket? >> we heard it was at least 2 billion euros. because the appetite was so strong, they are going to get over 2 billion, which would bring them in line with their peers. their trading multiples. they look like they are about to get high valuation the rivals get. >> is this about taking on ge?

is this about that ongoing battle, being more in each ?ther's space >> i think that is a way to look at it. they are about to go into oil and gas. that is all about taking on ge. siemens has the focus. adding out of areas like hearing aids is part of the strategy. >> are they still in the morning stage? >> it depends. a lot of people talk about how interested they were. part of it was to make ge's life a little harder. ge had to make certain concessions. i think they would have liked to get parts of it. at the end of the day they wanted to make ge's life harder. >> that is mean-spirited. brutal. >> great to have you with us this morning.

at live shots of the city of london. we are always fascinated to know what it is like out there. >> what time did you get up? >> i woke up at 2:00. it was dark. >> if you haven't had enough, come back to the last 10 minutes of the show. you're going to tell what the markets are going to do. equities markets had one of the biggest rallies. london is set to open a quarter of a percent. 6360. ♪

>> welcome back. it is 7:53 in london. our very own jonathan ferro is here. we will get the minutes from the thisof england meeting month. are they obsolete, given what has happened? >> what has happened? inflation has come down to a five-year low. we haven't got the wage growth we are looking for. unemployment on the run -- on the one side. a bit of a headache. are they obsolete? maybe, but the eurozone slowdown had already started. do we get that in the minutes?

i think it has gotten more difficult considering a couple months ago a lot of people had some conviction. that has all changed quickly. >> one thing that drove equity what the ecb about was buying already and planning to buy and announcing to buy later. >> more about the report that they could potentially buy corporate bonds has been denied. that has been denied. they could really get some meat on the balance sheet. we saw a spectacular rally on the back of ecb. >> we have heard according to the story,liar with but we haven't had it confirmed. >> if you thought buying sovereign debt was controversial, this is immensely controversial. boot tolaying the

capitalism. you are buying corporate debt. what does that mean? whose corporate debt do you buy? this is a bit of a mess. come on. talked about it seriously, but it is an element that has been mentioned by some. one of the criticisms is if we could tailor -- tailor ourselves we wish to reach volumes could reach high prices. it is the debate. versus germany. spain versus germany. no more european debt crisis. >> coming to a cinema near you. >> nice one. join us on twitter. let us know what you think. that -- is @

annaedwardsnews. >> on the move is next. to theoing to be talking ceo about those numbers. that is coming up, "on the move." ♪

>> welcome to "on the move." moments away from the start of european trading. , the s&p 500 posted its best day of gains in over 12 months yesterday. equities from italy to spain. speculation that the ecb will add to stimulation.

is the bank of england still on course to raise rates before the u.s. central bank? inflation in the u.k. at a five-year low. we look ahead to the bank of england. what does it mean for the market open? futures up by 15 points. gains., second day of >> if you look at the bond markets, they believe that no matter what the belgians say, they are not fully committed to the corporate bond york it -- bond market. you are seeing a backing away from the cliff of risk.