>> u.b.s. misses on profits. we're in zurich with their chief executive. twitter selloff. shares fall as much as 12% in extended trading. user growth slows at the social network. an exclusive interview with the biggest maker of pipeline for he oil and gas industry. > we were able to --

>> hello. welcome to "countdown." i'm mark barton. before we go to lloyd's, let's go to b.p. b.p. has crossed. >> they are saying their third quarter profit came in at $3 billion, above the $2.93 billion estimate. they say they are maintaining a strong framework. replacement costs $9 billion. 2.39. we're waiting on their production? s. expected to be about 2.5 million barrels per day in the last quarter. that's what we're expecting to see.

we'll have to see the detail in this. they own 20% of russia's largest roducer. output, 1.3 million barrels a day is better than what they were looking for. > crude prices dropped 5.5%. liabilities for the gulf of mexico oil spill, 50 billion is the new figure? >> that's right. they are still on the hook for the gulf of mexico spill despite the fact that it has been so many years. there is a lot of uncertainty. they have been found grossly penalty in but they want a new trial. grossly negligent of the spill that comes with a financial

penalty. >> let's talk about lloyd's earnings crossing the bloomberg erminal. 2.16 billion pounds. analystsing 2. 70 billion pounds. just cross right now. cut its branch network by 6%. bloomberg did a story last week that lloyd's was set to announce 9 million job cuts as customers re shifting to online. i don't know what that means when it comes to losses for jobs. we than stair last week. people said 9,000 jobs could be cut. britain's biggest banks may have to trim their 8,000-branch

network by as much as 75% in the next five or 10 years or so. lloyd's has cut 37,000 jobs since the government build a it out in 2008. we know it cut its branch network. the underlying profit has come in ahead of estimates. we've had impairment costs of 259 million pounds. i'm looking for costs of p.p.i.. payment protection insurance. the bank set aside more than any other british lender to cover the cost of p.p.i.. can't see a figure for that as of yet, but we do have a jobs figure. the company is to cut about 9,000 jobs over three years. it is announcing a three-year plan to cut costs. as i said, it is going to close

branches, cut jobs, commerce increasingly shifting to online services from branching as well. this is a company, though, that has benefited from the strengthening u.k. economy. it is the u.k.'s biggest mortgage lender. boosted mortgage demand as well. p.p.i. provisioning for the third quarter, 900 million pounds. cutting 9,000 jobs and it is slimming its branch net worth by 6%. u.b.s. posting results that missed analyst stims. a litigation charge close to 2 billion. caroline, what did this charge relate to? >> mark, if you dig into the

numbers, it is all within the investment banking unit. they don't go into what that is related to. many out there think this has got to be close to an agreement on the foreign exchange manipulation. not just ubs but across the board, many banks have been seemingly dabbling within bench marks. we're understanding that u.b.s. could be getting close to a settlement with the united states, with the united kingdom. he fact that they have take an .8 billion swiss frank charge. it looks as though they could be getting closer. the chief executive said yesterday he is making progress in this respect. >> we are making progress towards a resolution of these matters.

we are not controlling the timing or the full outcome. i think we are today in a position to have better estimates about how to address hose issues. >> they have always tried to hold their hands up before other banks and give evidence ahead of the gain. many analysts now are looking at he size of this penalty. this is huge. where does this go? they are going to remain at elevated levels. it is going to remain at elevated levels. he can't put a year on that. is that just for 2014? no. for many years, they are going to face penalties.

all right citigroup -- u.b.s. is not just going to have to swallow 1.8 swiss francs. it can get as high as $4 billion. >> thanks a lot. we'll come to you a little bit later. we've been at the conference ere in london. twitter's third quarter sales beat estimates but the social media company reported another quarter of dedecelerating years of growth. it put pressure on their chief executive. tell us more. the growth continues to decelerate? >> continue they are adding. what we see from twitter is subsequent rble growth. that is se consequential growth.

that gets them to 240 million active users. for c.e.o., he will be on bloomberg television later today, about 12:30 london time, this is a big challenge. here is what he said yesterday about it. it is the number we have delivered into the market. we have an aspiration to build the largest daily audience in the world. now mark on the good news front number of timelines used, 181 billion from 173 before. how much twitter is getting for 1,000 time line views, $1.7. we can cost it out on how much you are adding to their revenue profile for how frequently you refresh your timeline. and then how much they are growing internationally, they have some good news there. they are up 34%. 34% of their revenue is

international. that is about $121 million on a quarterly basis. they are starting to monetize all of these users they have abroad. they have a higher sales force to sell ads against those international users. >> if ever there was a good time for me to promote myself on twitter this is now. tell us what you think to have show and the top stories of the day. b.p.. rosneft later. lloyd's cutting jobs. novartis. busy, busy day for earnings. coming up, my next guest says b.p. shares a cheap whichever what i you look at them. ♪

>> welcome back to "countdown". i'm mark barton. african countries are looking at is affecting virus

them. good morning, sir. thank you very much for joining us today. >> good morning. >> you operate in 20 countries on the african continent. is the ebola outbreak affecting your businesses at all? >> at this point, no, not yet, mark. we don't have physical operations in the three really civil impacted countries, but as a region, it clearly does have an impact. it could potentially be a huge human tragedy. >> are you making preparations just to protect yourself and your clients and your customers? for the venture walt that the outbreak --ed a venn chalt that the outbreak does spread? >> look at the example of what's

happening in one of the more populous countries being nigeria. the government and local authorities have been very much on the -- with the procedures, particularly around travelers and how they monitor people as they travel. that is a really good example for anyone to follow, which ecently led to nigeria being declared ebola-free. that is followed by ghana. in those two countries at present we have no real issues. in line with what the governments are doing we clearly will remain -- >> your ambitions to expand further particularly in west africa. a clearly there could be timing issue related to that.

i think in terms of economic growth, it clearly will have a negative impact on economic growth in the region. you see far fewer people traveling. it is much more difficult to really -- motivate -- and in the region. >> can you give us a sense of how many representative offices you're aiming to open in new african territories? have you applied for any new banking licenses recently? give us an idea of your expansion strategy across new african territories. >> our natural market that stretches from senegal to ethiopia in the east and downwards. we currently operate in 20 countries. we have a license in ethiopia.

we do have a representative office in ethiopia. we have a license to operate in eight countries. we would hope to convert to into a banking license within a year. >> and in your home country, that is the industry in south africa got over the ripples caused by the collapse of african bank investment? > indeed it has. very contained to the specific ssues that it faced. a very difficult market position given rapid growth in the market over the last few years. the other banks are well capitalized and profitable. it is an extremely competitive environment where we don't see

any further connotation. -- contagion. >> the economy grows at its weakest level since 2009? >> no doubt. consumers are struggling. i think reductions in the price of fuel and petrol i think will be very positive for the country. it is like the -- would be quite good. a lot of difficulties are a as a result of the labor situation. that we faced in the country early on. the ability to pay in recent months, it would appear that we might well. >> mr. kruger. thank you very much for joining us tonight. ben kruger there, the standard bank co-chief executive officer. up next, the portfolio manager from sturgeon capital.

he will the breaking news on the likes of b.p., novartis, twitter. stay with us.

>> welcome back. 7:21. busy morning for the likes of b.p., novartis. let's welcome sturgeon capital

portfolio manager. let's cut to the chase. earnings beat estimates. it increased its dividend to 10 cents a share. you say it is cheap but still that doesn't entice you to buy the stock? >> 40% discount. you look at -- probably one of the cheapest oil companies by the amount of reserve they have. proven reserve. if we look at price earning ratio, it is very attractive as well. litigation risk relate as well as russian exposure is dragging the share. two days result. how will it result? i'm not sure it will be good enough. >> sanofi, novartis, where do you put them? >> they both have very good results.

the sales and profit. sanofi is a very well run company. the stock is doing very, very well so far this year. up 20%. they have a lot of new drugs coming online. should be the one that will deliver a lot of profit but evaluation-wise, it is very expensive. on the other side, sanofi, because of the fact that they are smaller, because of the fact they don't have cancer drug, it is mainly vaccine and animal health, the share is trading at very good evaluation. i think compared to other health farm suit company i think it is attractive. >> do you think it will survive? there have been board meetings. they are not happy with the way they have dealt with the board

in various instances. going strongly again. on the paper, he is not french. i think he is canadian -- german-canadian. the union, not really liking him because he doesn't create, doesn't want to create a lot of steady -- the -- didn't really like him. all in all, on the paper, it did very well for the company. >> twitter. would you buy twitter shares? i know you're on twitter. this is a company that came to market at $26 and went as high as $73. at $48. still an increase since it listed in november of last year.

>> twitter has to focus on growth. if we look at the results, they probably had the expectation that people were having in terms of one cent earnings. in terms of monetizeation. >> user growth, isn't it? user growth is not growing. it is very important. when -- the i.p.o. last year. twitter was supposed to be the mainstream -- like facebook. it is not growing anywhere near facebook. facebook is still growing at 16%. they have 1.3 billion users. twitter has to reach 500 million users, they have to grow much quicker than they are. >> many people said when i joined it would peak twitter. i was the last person out there to join.

where should we be putting our money in this very volatile difficult time for investors? >> >> the market was weak in october. we have a bigger exposure to equity than we had at the beginning of the month. all in all, we're much more vested today. we will go back to the market as it was back in july. i don't think so. i think it is going to be stable until the end of the year at least. >> always good to talk to you. if they don't do it, there was a downside risk. >> thanks. always good to see you. portfolio manager at sturgeon capital.

coming up, we've been at the conference in london. don't miss our interview with the c.e.o. that's next. stay with us. ♪

>> welcome back. a two-day meet tagget federal reserve. they begin their two-day deliberations. ill rates be record low for an extended period eeve though they probably will end bond buying. a gauge over the u.s. currency is heading for its first monthly drop since june.

the bloomberg dollar spot index which measures the dollar against its biggest 10 traded peers is headed for a drop. the yen falling against all except three of its major trading partners before the b.o.j. sets policy this week as well. the euro is rising against the dollar. that is two-day chart, up by 1/3 of 1%. 127.12. britain's largest lender, lloyd's posted a 21% jump beating estimates. their chief executive plans to cut 9,000 jobs over the next three years and trim the branch

network as more commerce switch to online banking. the behavior of some traders are truly shocking and confidence in fixed income currency and commodity markets is damaged by naccessible users. a proposed european union charge of more than 2 billion euros will be on the agenda. when george osbourne meets this week. it is a contribution to the budget. david cameron has rejected the demand calling it unacceptable. the 2.1 billion euro surcharge is due on december 1.

in the u.s., health officials say anyone with direct exposure to the ebola virus should be isolated in their homes for 21 days . guidelines stop short of mandatory quarantine but is stricter than previous rules that apply to workers returning withwest africa and anyone ebola patients in the united tates. investors are gathered to ask what is ahead for europe and the global economy. my next guest manages over $2 billion in assets. hi, tom. good morning. thank you very much for joining us today. >> good morning, mark. great to be with you. >> tom, what is the atmosphere like there? i'm sure you have had a few chats already. what is the big topic of

conversation there going to be? >> well, i don't think there is just one topic that is going to be here. we are just really getting started, but i think people focused on the big picture of the global economy and clearly in different parts of the world, they are trending, some down. some bouncing along. so we really haven't seen a big change in the dynamics of the global economy. i think a lot of focus will be on that. >> what has been happening to assets in the last couple of weeks after a long, long period of low volatility. it has spiked across the spectrum. just make sense of what has happened in october this year. >> clearly we have another round, not unlike we did a few years ago where, you know, different factors, whether they are economic expectations or

they are more geopolitical, really ununnerved the marks at the end of the day. in different markets, we have seen different reactions. people are worried that the fragile recovery or growth in the u.s. could be compromised. ut we looked at it more as the fundamentals haven't really changed and credit markets and orporates where we do a lot of investing. we saw an opportunity to find good investment opportunities. i think that will level out in the months to come, but we live in an environment now where you have to expect volatility when news builds up that makes people nervous. >> so where are those best opportunities now within the fixed income space? >> well, we're very constructive on u.s. and european high

yields. we think there is a lot of companies that despite slow growth in europe, or modest growth in the u.s., have done a lot to strengthen their balance sheets. their cash flow is very strong while top line growth might not be significantly in terms of economic g.d.p. related growth, a lot of companies have really harnessed efficiencies and productivities to generate good earnings. so we're looking for companies in both of those spectrum where is they have strong cash flows and the ability to operate through a modest and low growth environment. >> can the fixed income space cope with q.e. 3, which could happen tomorrow night? >> clearly, the markets are expecting that. i think that is priced into bond markets. the end of q.e. you had a lot of people move out.

certain markets. you had some outflows earlier in the year when the expectations or rate rises were more prevalent. i think that seems to be coming off the table in the near term. i do think the markets will adjust. at the end of the day, even if you were getting into a rate-rising environment, often fixed income is going to deliver a good return over the long-term. i just think, you can't pick your spots. >> how do you think the fed is going to communicate the transition from the end of q.e. as we said possibly tomorrow and that first rate hike, which, as you say also, has been pushed back a bit but could well happen in the next half of next year? >> i think the fed will be very measured. as they have been here. i think they will communicate their views, but i also think you're not going to see a

definitive date put out there obviously. they may use terms like extend period of time. we'll just have to see what comes out of the meeting. end of the day, i think the market is really -- not expecting an immediate move or a near term move and rates up. they probably felt that was more likely in the summer. now i think the markets are thinking that will be pushed back. >> yesterday we had -- yesterday was the market reaction. we had the results of the e.c.b.'s stress tests and many assumed it would be a great time for investors like yourselves. bond bond investors to snap up some of the bank debt after the release of those results. it was a mixed day for equities. is it a good time to snap up european bank debt at present? >> well, if you're talking about buying bonds in european banks, we're not a big buyer per se of

bank's liabilities per se. i think what it creates is an opportunity as the banks in the u.s. and europe focus on their -- we're seeing good opportunities for institutional investors to get into the space. the institutional market has benefited somewhat from a movement from bank lending to institutional investment and loans. chat to you. to live from the summit here in london. the world's biggest pipeline producer is considering selling snares its u.s. business to cut debt. that news comes from our exclusive interview that ryan did with the russian billionaire behind t.m.k. who is he?

pumpyansky. the company in london. this guy has real insight. it produces more pipes than anywhere in the world and most go to the oil and gas industry. he knows what is going on with oil and gas. he also knows geopolitics. a very important market because the shale producers in the united states, which have been booming, need an awful lot of pipes. that has been a huge growth area for him. the question you ask with brent it a 85 and w. timbings at 81, are they still buying pipes? he said yes. he thinks the fourth quarter is going to be pretty good. russia is a bit stickier. you have all of these sanctions directed at the oil and gas industry trying to purke push back their project, exploration. the russians want to increase

production. the u.s. and e.u. sanctions are designed to stop that from happening and yet he says they too are ordering pipes. if you look the depreciation of the ruble, it has been greater than the depreciation in the price of oil. these companies gets paid in dollars. their cap exand costs are getting cut. and their investment programs are in place. he is giving lots of orders. have a listen. >> we are fully booked for 2015. >> despite the sanctions? >> despite the sanctions. you know, we are the largest steel pipe producer for the oil industry in russia and we are the only company which could provide the full range of products. >> but some of these projects going forward -- are not going to happen. >> it could be -- yes, you're right. the amount of -- total amount of

-- for this project is not so big. >> just out of curiosity, i know you own a u.s. business. presumably everybody in the u.s. looks at it as a u.s. business. but you're a russian man. in some ways you're like the bad guy, right? these companies are getting sanctioned. you're a russian billionaire. has it changed your ability to do business at all in the u.s.? never feel --l, i in the direction of me ersonally. never feel something negative, you know? >> never? >> no, never. of course france gave us additional headache because we were able to create a chinese --

between our u.s. and american and russian divisions, legal and technical advice work together to check all of our movements, do not to be infractions. >> you walk a fine line. >> yes, of course. it is not very good, good news for us. >> what do you think about putin's policies in ukraine? they have completely changed the business environment? >> don't want to go there? rule number one in russian politics if, a western reporter asks you what you think about putin's policies don't say a word. thanks, ryan. is the c.e.o. going to keep his job? we're going to look at the

challenges. that's after the break. ♪

>> time for today's mark chart. today i'm looking at the braiselian real.

this is since the end of 2013. it is a one-year chart. yesterday after the result of the weekend election, the real full 1.% after the president won re-election. it is now trading at 2.52 to the dollar. this side the dollar rising against real. the drop yesterday was the rgest among 31 major currencies tracked by bloomberg. the real has fallen to its lowest level against the dollar since april 29, 2005. we're a at a nine-year low for the brazilian real. analysts forecast the currency could drop to as low as 3 to the dollar after the victory. if no changes are made to policy, that would be a further drob of 20% if it falls to three to the dollar. the economy is in recession. inflation remains above the

upper limit of the central bank's target range. another factor, the escalation of allegations of corruption. however, if they adammit to more market friendly stance as soon as possible, according to r.b.c. capital markets and she nominates a pragmatic economic team, the real could appreciate to 2.34 per dollar in six onths. since september 1, the real is down 9%. since july 1, it is the only major emerging market currency bar the real that has fallen the most against the dollar bar the real among all the other emerging market currencies. there you go. there is the real. the currency to watch after the

weekend presidential elections. big day for sanofi. big day for novartis.

>> welcome back.

mark barton. we are nine minutes away from the start of today's european equity session. let's talk drugs. been a very busy morning for the pharmaceutical sector. earnings from novartis and sanofi. let's start with sanofi. >> right. >> it is all about one man, isn't it? >> well, that is what the news in the newspapers were talking about yesterday. you have to say there is no smoke without fire? is that what it is about? everyone has denied thing. there is no specific -- things. >> he wasn't invited to the board meet? >> i don't know if that was case. the interesting thing about this -- i can talk about some facts here. this is a company that has the third best relative return since the c.e.o. joined in 2008. 87% relative return.

it is the third best among pharma companies. and st being bayer nordisk. there must be some other frictions if this is indeed true. >> what are the frictions? where do those frictions stem from? >> what i have read is that it is something to do with -- chris has been talking about divesting the established products without talking to management, the rest of the board. perhaps it is to do with this brazilian issue they had 12 months ago, but i can't see why this would suddenly be an issue. they decided to move to boston? i'm assuming someone on the board would have agreed with that. it is very difficult -- whatever the reasons are, to go and justify. >> he has made it less dependent

on chemical drugs. expanding consumer and animal health? >> the share price tells us he has done a good job. now the year come out of the patents expiring. ere aric up -- there are hiccups all the time. there is a slight beat there, a slight miss on sales. i think the markets are not going to look through those. what i'm worried about and i think the market may focus on once it is open is the comments about diabetes. their insulin is a blockbuster drug. sanofihe first time that came out talking about price pressure in the u.s. this has been a great growth product for them.

they are talking about price pressures in the u.s. some new contracts that have required bigger rebates and discounts. something that has been going on in the diabetes space for a while but hasn't quite touched them yet. what is worrying or could be worrying to the market, you look at it, you expect the diabetes franchise to be flat. they are going to get growth from two new products. >> one line on novartis. >> nice margin improvement across the board and across the divisions that beat analyst estimates by about 4%. that was driven mostly by eduction in ready. -- in r & d. >> join us on twitter. if you like what you have heard,

let us know. tells us what you think of the show. tell us what you want to hear more of at mark barton tv. "on the move" next. we're going to talk oil. see you nice and early tomorrow. ♪

>> welcome to "on the move." i'm jonathan ferro. just moments away from the start of european trading. this is what we're looking at over the next 60 minutes. lloyd's third quarter profit urges 41%. they announce 9,000 job cuts. so talking about oil and oil majors. b.p. europe's third largest oil company's profit drops 19%. when you think about about oil heading for its worst year, the question is how resilient is

b.p.'s bottom line? and we will talk about the end overp q.e. 3. the fed begin theirs policy meeting later today. investors expecting them to finally wind down their asset program. is the market ready to stand alone? right now the market looking pretty resilient. > ftse 100 futures up. we are expecting a higher open. a down day yesterday. a little bit of a rebound. >> down 6.3% yesterday. banks were the worst performing sector yesterday. falling 1.7%. 37 banks fell yesterday. that's after the release to have e.c.b.'s stress test results. already ftse up by .6%. gains in the nordic countries