>> there would be fewer highly paid bankers at barclays in the future. anthony jenkins told bloomberg in an exclusive interview -- >> as a make it more focused, we will have less highly paid people within the organization. that is in line with the strategy. >> and another exclusive. the bank ceo tells us russia is not having a significant impact on its capital situation. we are generating as expecte d. builds on pressure

the president of the european central bank as he prepares to reveal his next move. welcome to "countdown." i'm manus cranny. i'm anna edwards. let's begin with banking. mapping out the next five years at the bank. he made clear that the bank would be hiring fewer highly paid investment bankers in the future. of pay, we believe in paying performance and pain competitively. we are able to do that as we reposition the business. of course as we make our

investment bank more focused, that means we will ultimately have less in highly paid people within the organization he read that is in line with the strategy. cuts -- we heard that you are looking to hire. how far are you through this process? are you only looking high within certain divisions? >> absolutely. it is about focusing on the areas where we have the ability to grow. we have to reshape and refocus to do that. it is part of the evolutionary process. that allows us to invest back in our franchises. africa is an exciting growth upward unity. growth opportunity.

what will barclays look like in five years time? >> we're focused on things like -- the reason for that is the cost of technology is falling exponentially. thismeans the complex is the banking can be transformed. for example, in the u.k., we have over 3 million people using mobile thinking. the used on average 20 times a month. it is creating the ability to connect much better with our and in a at lower cost much more streamlined and affect if way. very much many people at all levels. if you want to get a mortgage,

you have to talk to a mortgage advisor. if you want to raise cap will, you talked an investment banker. all the routine activities people do today. in 2007 -- itt wasn't very nice. streamlined. >> i think there are a lot of lessons to be learned. in my view, what went wrong in the crisis was that banks in particular misunderstood the risk there are carrying on their balance sheet and mispriced that risk. look witty the drive that. banks failed. big banks failed. at the corvette is this notion of understanding and management of risk. i believe the regulation change

they're holding much more capital. jenkinsays cdo antony o antony jenkins. >> caroling conan is standing by in the wrench capital. connan is standing by in the french capital. >> good morning. euro're missing the estimate from bloomberg. the three main challenges. first, the french economy. 4.2% in -- the situation

remained sluggish in france for this year and next. despite the increase of loans for companies of 6% and the third quarter. the second challenge is russia. represents roughly 3% of the balance sheet. the contribution to earnings from russia with only 16 million euros in the third-quarter. finally, challenges on the market. they had their revenues from equities trading down 25% in the quarter. i spoke exclusively to the ceo. here is what he had to say. >> it is hard to say you'd we achieve this performance in an sluggish environment. this summer was very calm in terms of unity. .- activity

overall, dynamic in terms of commercial tv, new clients. all this is very strong. >> lower volatility, lower volumes. however, they are not increasing their provisions for litigation. their provisions remain at 900 million euros. >> caroline, you also talked about the ecb and european growth. what did he have to say about the agenda? >> of course, the main question going forward will be how resilient the economy will be in the next few months. it is much more than the bank index.

mainly due to the low growth in europe, the easily passed the ecb stress tests. i asked whether he wants the ecb to do more. >> in terms of monetary policy, at our -- when i look bank, we do not need liquidity. we have to lend. it is more a question of demand. it is a question of confidence. europe has to be more competitive. we need to be able to innovate. and it -- education is also important. there are structural policies that need to be implemented at the european level. >> they do not need more liquidity from the ecb even if the situation in russia to chair culture isr capital

up from the previous quarter. the situation in russia on the impact capital levels. the situation, he says, is under control. >> caroline connan reporting from paris. let's stick with the banks. they breathed a sigh of relief. they got to the stress tests. and delivering a net and come that beat estimates. 185.5. why? whole of 2014 they are dying. third quarter, dropped by 31%. expense is a bit higher. risk-weighted assets. a small reduction.

the core part of the paint -- euros.3 million a bit of a relief. the largest generic company in europe reporting numbers. third-quarter numbers specific way. sorry, fourth quarter. below thest a shade estimate. that's one of the headlines. the other headline is that siemens is agreeing to sell their hearing aids unit. that was the story that bloomberg took a week or so ago. in terms of forecast, they are saying they are going to see 201 5 increase.

they are also saying they're going to face euros in project charges from the wind power business. 2015, they sayo that things look "complex." we will pick up on all of those themes when we speak to the ceo. fact in half an hour's time. >> indeed. coming up, all eyes will be on mario draghi. low growth. the euro versus the yen. stay with us. we will talk ecb and the president's next move. ♪

>> welcome back to "countdown." i'm anna edwards. profits thatrting beat estimates. orders for its electric car will increase next year. tesla says its new model won't hit the roads until this time next year. later than expected here at nevertheless, stocks were out.

tokswagen is recalling audis repair a defect with the vehicle's airbags. the floor effects vehicles ranging from 20 13-2015 models -- 2013-2015 models. the problem was not hardware and would be quick to fix. >> purely as software issue. 20 minute reprogram. we have made the recall. we notify the government. we notify them of the issue. when you have these context vehicles, taking the risk on technology doing what we do is to be expected in some ways. >> and the summit wraps up today. peter teal speaking to bloomberg. he dismissed the idea of another tech bubble on the way. >> it only happens when the public gets involved. >> this time a haven't been involved.

.> a big reporting day -- or toelecom has telecom -- deutsche telecom. let's get a sense of where we are with these earnings. a bit of a relief. what to make of them so far, hans? good morning, by the way. >> good morning to you. they have returned to profit for the first time in two years. the added customers in the u.s.. looks like the decision where they get a third of the revenue might have been the right one. there -- it is even more impressive. oppressive feet.

operating expenses were a little bit. and we get to siemens. siemens basically comes in line. for about 2.2ng billion euros. they need a lot of money. they bought the energy business. in about 15 minutes we have adidas. we have the whole cycle. that we worehoes as kids and as adults. he going to the banking sector. maybe it is the tombstone. most of the numbers are pretty impressive. >> it is cradle-to-grave. >> what about the house you live in? that is where you could have gone. >> i know a thing or two.

we will catch up with a little bit later. hans nichols in berlin. >> pressure is mounting on mario draghi. the threat of deflation in that eurozone looms in another exclusive bloomberg interview. any measures from the ecb may be too little, too late. curve.zone is behind the -- there's massive disagreement within the council. that will not happen. >> for meeting reaction to that, we are you -- joined by an economist. good to have you with us this morning. morning.anning -- good

what is the statistical possibility? i think if we look at the expectations around the meeting today, special now start, we don't expect that as a case line. president drop it raghi to beh -- d dovish. there is a substantial amount of measures. we're not able to drudge in a very global way what will be the balance sheet due to the fact that there are some operations. allocated.to be most importantly, there is going to be a substantial amount of liquidity.

>> is there anyone that thinks an early christmas present will be the months that mario draghi and team press the button on full-blown qe? is that a misplaced expectation? >> full-blown qe -- probabilities are high. what is more likely than not in december where the ecb will of rate and downgrade is an extension of the composition of the program. detail like you have been saying. we will see more detail and what is his ackley targeted at the moment.

>> they could be a target for the ecb. there is consistency with the larger balance sheet. we had to be frank with the full-blown qe. it is quite substantial. about the baseline scenario, if there is enough in the pot, what we expect to move up words that would satisfy you to say they are beginning to -- we are seeing a process a very low inflation.

hat is why the probability -- >> thank you so much. stay with us after the break. ♪

>> welcome back to "countdown." i'm manus cranny. >> i'm anna edwards. seniortill have a european economists. everyone is saying it is a boost me, ever and around the table. >> i think in the short-term, oil will certainly be relevant for the assessment. we still think with that energy prices behind some of the -- most importantly in terms of what we are seeing on the short-term inflation, within the

weakness and energy isis, was probably behind the forecast. the relatively weaker compared to the expect nation. certainly.le, we are looking at it carefully. side.t is the monetary what about the demand side. it is actually more a problem of credit demand for him. >> definitely. there are positive indications. of micro improvement. what is constant is the overall picture for income generation

within the eurozone. that is momentous for us. >> thank you for joining us this morning. >> good to be here. >> senior european economist. >> coming up, we taught gold. ♪

>> welcome back to "countdown." i'm anna edwards. time for -- i'm manus cranny. exchange. check on dollar yen traded 115.

barkley said if it beats estimates, 117, hello, if it misses, the baseline is 112. be wary. thatr yen is oversold on one. of the yen, this is the challenge. what the japanese have done. aussie bonds -- aussie yen at a high.

raw mature has lost a percentage of its value. anna? >> let's talk about sports where. the estimate was for 4 billion euros. 49.3%s against previously. that seems to be weaker than previously. this is a business that is facing challenges on a number of front. their increasing the leverage. cap get nike encroaching on their own home turf. of course, there racing the phenomena that seems to be a declining appetite for golf. that is something we have talked about on the program a number of times.

that makes this business the worst performer on the dax. they had to step away from their operating target. that is what they set back in 2005. one analyst says this has led to a did of lawson confidence from -- for management. he set up the strategy for his successor. these are the bloomberg top headlines this hour. the ecb holds is monthly meeting peter the ecb is unlikely to move its benchmark interest rate. to becus is more likely on remarks made in the news conference. we will bring that to you live at 1:30 p.m. london time.

and the new president of the european commission says the u.k. prime minister david cameron has a problem with his fellow european leaders. juncker says he will rebut and accusations from the eu, including cameron. >> one company will keep an eye on is a report of earnings at the top of the next hour. just under 30 minutes. will that selloff continue? did you like that one? >> i did. gold price is set to decline, especially if the dollar appreciates and the fed turns even more hawkish.

bucks at the end of next year. their message is don't try to catch a falling -- >> it is interesting when you try to apply the gold price to the gold miners. some must be feeling the pain more than others. >> had to look at making money when producing gold. only 12 are making the money out of the gold they take out of the ground. the production cost is higher than the spot price. it is actually cash flow negative. that number goes to nine out of the 19. >> they are all on the cusp. >> it is. there's one analyst who is

saying about a third of the gold production right now in the world is underwater affectively and has been since the price hit -- it was a while ago. we have this two tier market. we have class acts. have in mining their costs during the boom. you have got those who may be worried that sensitive about costs. there are now in the doghouse. some are winning and some are losing. gold producers are getting punished more than the gold price. if you look come if l ball for 5%. you look at gold producers. one of the index is that we use,

the s&p index, that fell 16%. a gold miner,ding chances are you're probably not seeing the share price of your company's rise. having said that, there's relative strength on the way down of who is doing better and who is losing less. most analysts agree that they have a flexible business model. they can scared -- skill down easily. there is a relative winner in their shared compare that to harmony mining. a south african miner. third-biggest. there got high price. they are underwater right now. >> a goes from hero to zero. , more on gold and have an hour.

all three of us will have a conversation with the ceo. mark bristow. they report the recording -- third quarter earnings. >> an 18th century castle with the medieval prison and moat -- not my house. [laughter] a lot more affordable than you think. there is a catch. onset nichols took a look -- hans nichols took a look. bridge and step into your own fairytale. an 18th century german castle -- yours for just 350,000 euros. scaling the cows the wall is easier when someone is in alls is hot -- castle w easier when someone is not pouring hot oil on you. it is more brothers grimm horror

than disney fantasy. the problems are modern. the challenge of selling this stronghold located two hours south of berlin falls to the local humans the polity -- local municipality. the sticker price has a catch. >> investments in this castle depends on the renovation costs. it is a realistic expectation. >> under communist rule in old germany, the shaells dot the countryside. >> as a resident of one family, it is a little big. for luxury hotel, it is too small. something in between is exactly the right thing for this castle. >> if an angry mob crosses the moat, you could address them from this balcony and perhaps

figure out some way to appease them. if you get castle fever, you could cross over the moat on a rebuilt medieval bridge and head into town for a beer. ichols, bloomberg, germany. did he have to climb the wall? it does have a door. >> it is the dramatic effect. [laughter] >> amazing what you could buy for 350,000 euros. i looked in london in knightsbridge. what did we find? one studio flat. [laughter] just a bed. and microwave essentially. what is it? >> a ferrari. >> we don't think it comes with it. bearing that in mind, 350,000

euros for a place to hours outside of berlin, a castle, and i'm -- moat? >> i'm off. petite hotel. we will get more. kaeser joins us after the break. ♪

>> time for today's company news. euros.lion said it will dispose of its non-core assets for another 220 million euros. the world's largest personal computer maker posted the slowest sales growth in six quarters. genova was taken over and the global smart market by chinese competitor. revenue rose 7.2%. missing analyst estimates.

market a shrinking pc and a slowing growth in china. and twitter is celebrating its first anniversary as a public company. the stock has soared 55%. his performance is less than impressive. twitter's losses are widening faster than sales are gaining. user growth is slowing. the rookie year has been much better. zynga's and groupon both traded a low. up, siemens reported's is earnings. he will get more from the ceo himself. he is joining us shortly on the program. ♪

>> welcome back to "countdown." i'm manus cranny. >> i'm anna edwards. siemens has reported earnings this morning. the siemens ceo joe kaeser joins us live. thank you for joining us. it start with the assets. you are selling the hearing aids unit. are you happy with the price you got? do you wish you did some ipo or flotation stock offering? well, we sold some come

petition on the asset. we liked the outcome $2.1 million in cash. sounds like a good price. i'm very happy with what i see. >> let's talk about where you are spending money as well. u.s. shaleate of the industry and the growth potential there, does that justify the price that you are paying? where is it does the price you have to pay to get involved in this sector are? -- sector? we're not paying prices just to be a player of something.

on the other hand, we need to out oft value we create the acquisition. we get very close access to the oil industry where we can help in the future. we're very proud to get the agreement with management and the board. i was in the short-term, we do see the oil price. think about the fact that the oil has haducer of

break even in 2012. we do not expect a massive degeneration of spending. that it is not exactly -- we believe this is after all a good long-term value. >> have you finished doing the deals? respect more in the shale sec there or oil -- shale sector or oil sector? >> we've got a lot on our plate. we make sure as we convert

revenue into profitability, we make sure we will become much more leaner. 2015, we will integrate the acquisitions. we will be dealing to make a sound and powerful portfo lio. in those areas, we believe where very strong and good at. i like what we see. it could always be better. this is not only about energy. it is about securing the numbers and profitability. >> sorry. you answer that question. >> go ahead. >> ok.

whethergo on to tell me the complexities around geopolitics -- what kind of weight are they putting on your business at the moment? >> it is a concern. it clearly states are singled biggest concern is the geopolitical environment in the world. things such as ebola in africa and crises in the middle east and ukraine. the european business is pretty close to those areas. we are very mindful of the sentiment may provide for our customers. that is why we are very careful about our growth expectations.

>> can i ask you about the ecb? they are meeting today. do you want to see more quantitative easing? something you are from the european central bank -- something bigger from the european central bank? >> i'd rather leave it like this. the ecb will do what they have got to do. europe needs some growth push definitely. helps.g that >> ok. thank you for joining us. siemens.r, ceo of >> we thought we would shift gears and take a look at the newspapers. the sense of the

word. this is light. here's a picture of metadata number batch -- benedict c umberbatch. he basically took out an ad in the old-fashioned way to announce his engagement. anti-technology thing to do. he put it in the newspaper. that it became a twitter storm. andle started to tweet leslie that he was going to get married. i thought this was an amazing start of old meets new media. two minutesing for every day at midday. why? traders,he day brokers, and jobers got two hours for a nice, boozy lunch. this is about to counter that

preference for trading off exchange. this will effectively be what traders call dark pool light. they will have intra-day -- stocks traded. you could scarf down a tuna lunch. >> i had lots of lunches. drafty. shock. of 29-year-old hanging out with silvio berlusconi. it caught our eye. she is on a harley davidson. she sort of was worried about the age difference. i like the harley davidson. >> i like that she was at all the parties. >> wow. >> what a revelation.

"countdown" continues on a slightly more serious note when we come back. we will talk about the rate decision. ♪

>> there will be fewer highly paid investors in the future. exclusive interview. >> as we keep focused that means we will have less higher paid people. exclusive, profits rise at stocked in. the ceo tells us russia is not having any significant impact on its capital situation. ande are generating capital have the strength of a bank to

face any kind of down. draghi, the pressure builds as he plans to reveal his next move. >> you are very welcome to "countdown" i am manus cranny. >> we have some german numbers. >> we have the ceo of rand gold germanyre pressure on and the european central bank actually had manufacturing orders rise 8/10 of 1%. a number of thought pieces in inent days about weakness

the core of the euro zone whether that will push the ecb into action. other reports of people falling out with each other and whether they have anything to say about those reports. >> rand gold at third-quarter million.e, $58 million last year, the 60,000is up by nearly ounces. that is up. i hope i have not upset the ceo. >> he is just out of the shot next year? -- next to you? q3 core earnings, 1.05

dollars, that is in line with estimates but they are raising their forecasts for the full year 2014. this does not come as a surprise to some because there had been a suspicion that graham backs would introduce a generic competitor but that failed to get approval so some of that perceived competition has not materialized so as a result the company is able to put up its forecast. billionue at 6.5 4 which is ahead of estimates. we are also watching for what they have to say about crystal because that will lose its patent protection. astrazenecasiness, the u.k. drugmaker, all of the

offer was fought off earlier this year and this is the way the company comes back with an increase. >> that was a heck of a tussle. ,et's get back to rand gold welcome to "countdown." , 692cost of production bucks, that is well below everyone else. what do you make of the quarter? >> a great quarter, probably the best in the history of our company. building cash again and have no debt and it is a good place to be in a market that is under a lot of pressure on the downside. counter theou do to decline in the part -- price? prove that wets

are profitable and that is something our p here groups struggle to show -- our peer groups struggle to show. >> how much pressure? issue is that we keep producing at a loss so we are just feeding the supply and are in an oversupply situation. a lot of debt in the industry and you have to keep reducing gold to service that debt. said youar ago you said gold falling below $1000 but only briefly, do you stick to that gecko -- do you stick to that? >> as you can see we have managed our business with that in mind.

offo take some production to protect ourselves >> >> because we have allocated our capital, we can store at below 1000 before we go cash flow negative. there is a point -- the question is, the industry itself, the cash cost curve is under pressure and you have to be careful that you do not make short-term decisions when you are faced with an industry that needs to correct itself. >> ryan brought us some data earlier about the other businesses that are feeling the , so more than yourselves when do you start to have the confidence to say these guys are feeling the pain so maybe we can do a deal ?

i think the first response to the sort of pressures is everyone would like to sell the assets that they don't want. orpotential dealmakers buyers, we don't want those assets, we want the assets that people don't want to sell. we have to wait for the market to switch a little further before there will emanate opportunities -- >> it's not about the price but how long it stays at the level. >> we are already seeing that at play, the big players are all under pressure and have a lot of debt. been outspoken about trying to fix their balance sheets and there is no equity left. no one wants to invest in the gold market so there is a lot of rusher. to -- you wantd

said, that outside of russia, the investor climate is not wise yet, i'm assuming you feel the because the policy -- >> i have always said about the success of the things we did not do. >> are you hedging anything at all? hedgew you don't want to on the way down, you want to hedge on the way up . >> if you're not going to cover yourself -- we are very ready to manage this market. >> can i take you to another subject in the mining industry, it may not materially affect your business but you may think about it, that is ebola. and theree in mali has been only one case of ebola can you talk about how

you see things developing in that location? >> the first thing i would like to say is that ebola is a crisis because the western world has created a crisis out of it. it is a real tragedy, the response from the western world, ebola is eminently manageable. it was allowed to get to a point andierra leone, ginny liberia where you had so many peopled people, before mobilized to deal with it, as you have seen in senegal, you can manage. imported into nigeria, it was managed well. westernind of the world, people think you walk down the street in africa and run the risk of contracting ebola, that is nonsense. and thisnaging it

is --ed case from judy it there are now one hundred five people and it is day 14 and no cases of ebola yet. africanized a west private group that really highlighted the process in ginny >> toria and sierra leone you think the world health organization are up to speed? >> they have mobilized and are all over us. 7:00, we willst be looking ahead to the ecb's meeting in frankfurt. ♪ >> time for the day company

news. tesla is reporting profits that beat analyst estimates and

forecasting orders for its parts will increase next year. tesla says its new model tax won't hit the road until this time next year. stock went uphe by nearly 7%. nearlyagon is recalling 100,000 audi's in the united states. told bloomberg that the problem was not the hardware and would be a quick fix. is purely a software issue, it is a 20 minute reprogram and when you have the staggeringly complex vehicles taking a risk on new technology, it is to be expected in some ways. >> the dublin web summit wraps up today. the attendees was the

paypal cofounder. the bubble is a psychosocial phenomena and only happens when the public gets involved. tech in the 90's, housing in the 2000's, and this time around the public has not been involved. not one but two central banks will make their decision later today. the bank of england is expected to keep the british benchmark rate at record low. more on central banks and all things policy and markets we are joined by ian from the absolute strategy research. feast ine a bit of a terms of the news conference druggie, that will

probably be the focus. you say they will eventually need more unconventional policy. what form would that take? a famine and we know not a lot will happen. people are waiting until december to see what is happening and in the u.k., we are looking at a static situation. haveuestion is, we unconventional policy but a very conventional inflation target. if you have zero interest rates but a 2% inflation target your limited to -2%. it post-world war i and world war ii you actually needed interest rates of minus five and -10, you needed much more negativity. when you look at what the u.s. is doing to say we will droid -- drive unemployment well below

the natural line, they give you a much stronger signal than you're getting either from the bank of england or the ecb so we think you have to get them a much more unconventional, unconventional set up. that is digesting bombshell. mean, whats that difference is it make if they have 2% or 4%. everyone seems to agree that it needs to be higher. >> in the same way that the cutting interest-rate from half percent to quarter percent, a lot of people said what do you do? he has signaled his halfing to see the exchange weight cash exchange rate weaker, we cannot afford to let real interest rates for positive because if that happens you get a japan ification of the eurozone and that is what we want to avoid.

>> i'm glad you brought up japan because every step he takes he has a body, they play poker and he loses every time. size enterprise. thank you anna. but that is the point. you from tim takes him. takes, the yen trumps >> policymakers are not doing it extra honestly e -- exdr is --sly, able to do it they will do it endrogenously. >> we're finding that macro official policy is just as

important as what the npc has, slowing the housing market that is why soderling is being dragged down and we think it will go further as well. we do think that japan is doing the right thing and will manage to be successful but are they buying the right kind of assets? i think we are much happier that they are buying equities you will see that type of encouragement -- >> buying equities doesn't solve the problem of trying to ignite inflation. i am rather passionate about this. >> but what you have to do is get the equity risk premium down, just by buying bonds it keeps the yield slow and forces the equity up. why i would say, who has

done best in this recovery, the united states. what has been the difference? the banking system sorted and said we will focus on low unemployment, really low unemployment and that gives corporate a very clear message, whatever politicians do on the fiscal side, we on the central bank will make sure that you have domestic demand to come through and that is how you get real wages up. at whatever is necessary, you will match it. the thing the americans did was they bought the stuff. >> you are focused on all big macro trends, you talked about corporate so let's talk about the themes today. geopolitics is the biggest concern, for many puts concerns about global growth in perspective. when you have them telling us it is at the forefront -- >> this is good news, isn't it?

or five years ago they told us geopolitics was the main concern rather than other things, i think that is showing we are getting normalization. our concern is global troth -- global growth has not got above 4% in nominal terms. of monetarychange policy is not excessively loose. if it was we would see that higher wage growth and that nominal gdp growth. we still need to see more from the monetary side and the fiscal side. line, you'reive very positive on global equities and prefer em over japan? evaluatione the gaps, still in the emerging markets. , where are theth top 10 equity markets? hartnett. ian

industriale largest business is what i meant. siemens, they just reported earnings and we will speak to the ceo about what he sees. more on that next. ♪ >> let's talk about german

businesses in most categories of earnings they beat estimates. hans, what did we learn? >> we just had factory orders that came in a little bit less exciting but from corporate germany it seems like there is real strength. means there is a lot of cash in the books, we had the men's and deutsche telecom and commerce bank. it ifread too much into you're wondering if germany will slip back into inflation. for example, they had a pretty good quarter up 22% year over year and came in line with estimates. deutsche telekom is perhaps the most interesting one, they added subscribers in the u.s..

commerzbank came in better than analyst estimates by quite a big margin and they did not have any big losses or loan provisions. befavorite story has to adidas, they beat analyst estimates, and anna, you want to know why they beat estimates improved sales in their running and soccer divisions. if you think you would rather run on the golf course than play 18 holes good news, adidas is profiting from it. >> that sounds like a very niche pastime, but well done for working that when in? up, anthony jenkins tells bloomberg about investment banker pay and more. ♪ >> let's have a look at the

foreign exchange markets, it is 7:30 in london, they came and they traded. 150, so youup at are seeing overall dollar strength. euro-yen also on the move, the euro rising for the past five sessions.

120 to 125 is completely attainable on there and. -- on their end. they say it will take you up to 170, don't worry there are 300 pips on the downside. some of the indicators say technically this currency has oversold, so that is the yen. what is happening? people are selling yen and going to buy ozzie-yen. buy aussie bonds. japan'sly the bank of options will be pushing the aussie dollar. offozzie dollar just coming

a four year low. iron ore is under pressure and down on the yield. >> the european central bank holds its monthly meeting in frankfurt today. the ecb is unlikely to move its key benchmark rates. the focus will be on any remarks that mario draghi makes in his news conference. the bank of england is also concluding its monthly rate setting meeting. the bank's monetary policy committee is likely to leave the benchmark interest rates at 0.5%. the new president of the european commission says david cameron has a problem with his fellow european leaders. in his first news conference, he says he will rebut any false accusations from any prime minister including cameron. >> welcome back to "countdown

your cult i am manus cranny. "countdown" i am manus cranny. >> they made it clear that the bank would be hiring fewer highly paid investment bankers in the future. pay, we believe in paying for performance and paying competitively and we are able to do that as we reposition the business. of course as we make our bank more focused that means we will have less very high paid people. that is in line with the strategy. heard earlier, are you only looking to hire or grow certain divisions?

absolutely the strategy is focusing on the areas where we have the ability to grow and we have to reshape to do thus, it is part of the evolutionary process. we are largely through 14,000 jobs, that allows them to invest ,ack in our franchise investment banking welfare and is annd in africa which exciting growth opportunity for us. one ofmentioned before the most instructive areas, -- [inaudible] >> technology is much more profound in my view, the reason for that is constant technology is falling exponentially.

means complex services like banking can now be transformed. >> very big messages there from the barclays ceo anthony jenkins. that was not the only exclusive interview this morning. to the ceo of france's second biggest bank and he told us the results were particularly strong given the environment. >> overall these results are , which is a significant thing compared to last year and of course the confirmation with balance is safe to say we , fromed this performance an economic point of view and

also on the markets, in particular the summer was very calm in terms of activity so we have to take that into account, but overall the dynamic in terms of commercial activity is very strong and that will generate revenue in the future. 1.2%tail banking is down this quarter, what are your concerns about the french economy giving the growth could be low. >> the assumptions for france in 0.7% nextorecast, year. what is important is the capacity to be dynamic in terms of collecting new clients. we have a strong presence in the most dynamic regions of france. we have companies in particular which export. the growth, the production of new credit is 6%.

companies that take advantage of export markets. income is going up, that is something positive and the crossover risk is going down. strong growth but very residents. i know that you like this story, there is an 18th century castle with a medieval prison, a moat, a lake, more affordable than you think but there is a catch. hans nichols takes a look. cross this bridge and step into your own fairytale. castle century german yours for just 350,000 euros. castle wall is

easier when someone is not pouring hot oil on you but if you take ownership that was when the real obstacles begin. >> inside you may find more brothers grim horror then disney fantasy. >> the ruins may seem medieval but the problems are modern. the challenge of selling this two hour south of berlin falls to the local municipality. the mayor has traveled as far as dubai to pitch buyers but the bargain sticker price has a catch. >> investment in this castle depends on the renovation costs, between $3 million and $6 million is a realistic expectation. old rule the castles were left to rot and many are now for sale by cash strapped owners. >> as a residence for one family

it is big and 48 hotel it is too small but something in between is exactly the right thing. this is quite the place for a harvest banquet. if an angry mob crosses the moat you could address them from this balcony and perhaps find some way to appease them. if you get castle fever you can cross over the moat on our rebuilt medieval bridge and head into town for a beer. hans nichols, bloomberg, germany. he has taken us on a bit of a musical journey. fairness, and of edwards has an equivalent for what you could buy in london. pounds in,000 knightsbridge, you can get a studio flat, it has a bed, a bit

of a table am on my coif and a fridge. and that will cost you less than 300,000 pounds. garage, what is in the garage? >> there is a ferrari, but i don't think that comes with it. ridiculous property markets. >> that might be of interest to our next guest. up, we will be joined by a lady who knows a thing or two about monetary policy. stay with bloomberg. ♪ >> time for today's company

news. the world oldest bank sold $2.5 billion in new stock. will alsoaid it dispose of its non-core assets for another 220 billion euros.

the world's largest personal computer maker posted the slowest sales growth in two quarters. they have been trying to break into the smartphone market. revenue rose on the quarter missing analyst estimates. twitter is separating -- celebrating its first public anniversary as a public company. its performance has been less impressive. twitter's losses are widening and other sales are gaining. the company's rookie year has been much better, both trade the low on their initial debut prices.

welcome back to "countdown," i am manus cranny. governor markland carney is facing a slowdown in the u.k.. and joining us is a former member of the monetary committee who is now the author of a new book. kate thank you so much for joining us. what is the biggest headache for the u.k.. isone of the biggest changes expecting that benchmark rates michael today is the bank -- rates might go up today, is the bank-- that is quite a challenge for

the economy. there are some signs of a slowdown here+++ right to push expectations back quite so far, i am not sure. we have had unemployment falling pretty quickly and rages main -- remain pretty slow now. but the question is where with a be in time? >> anna and i just opened an article that talks about the policy blunders in 1937 and that was of course raising rates in the face of things not being that great. they try to raise rates next year and it could be a policy missteps that we are not growing far enough. we have growth but a big policy jump when everyone is in the opposite direction. to see how powerful monetary policy is.

i find it very hard giving all the modeling you do to think that would have an enormous effect. the bank has been very clear that rate hikes will be gradual. we don't expect loan rates to suddenly jump. we saw them in the summer of this year starting to use a little bit of macro prudential to curb the housing market and that seems to have had quite an effect and that may have also in -- hindsight turn out to have been a benefit. that'll think the economy is anything like it was two years ago. we have very strong growth over the past year. starting to look more resilient so i am not sure that raising rates turn out to be a big problem in that way. >> can i ask you, the two members that have parted company who have been voting for a rate hike, as someone who sat on

these meetings before, if you are in the situation they were in and thought, maybe i went to early and i don't want to see a just yet, is it possible to back away from that kind of call? >> yes it is, i certainly backed away, but it is an uncomfortable situation to be an. but you have to be brave enough to say if you want to put rates up and it turned out to be a mistake and you have to reserve -- reverse. you have to be brave enough to say it did not turn out quite right. you have to accept that people are not going to get it right all the time and take the data as it come in and make sure the shock may come along that makes your called not quite right. that is called being grown up. >> i went to go back to the word you used which is, gradual. bank of england were called the unreliable boyfriend, but this

is one of my pet focuses which is, hang on it will be gradual, it will be what you 5%, you 140% debt load, but it is all ok because we will go gradual. idea how absolutely no to raise rates because we have never been in this situation before. >> i think that is a good point, saying too much about how they think it is going to be, it is surprising when people say i have no idea when the first rate hike will be but i know it will be gradual -- that is a bit weird. but as they see the world today a think it will be gradual because they don't want to upset expectations. iny have been very clear this other line, it is an expectation, not a promise. they are doing their best to guide the market and that is the difficulty. i think the culture point makes a much bigger difference when

you have to deal with expectations. and they are sensible to try that. you can't be so afraid of raising rates that they say 20 years. have to find a way of managing it and that way seems good to me. >> what is your expectation for when rates will rise? popular timecome a to talk about raising rates. i'm not sure it is still possible will see a rate rise in the new year. it depends a lot on what happens in the labor market. the big news is that our wages will start to pick up, as unemployment continues to fall it is really surprising to raise rates already. but as we move to the beginning of next year we may find the labor markets frighten us a bit more than we expect and it could

also depend on the eurozone, if it is looking healthier we could go into next year looking healthier. there is still a bit of distance, one thing we touched on a bit earlier was household debt. to oneone from 105% heard 40% in 10 years. wages are nowhere near commensurate with that kind of debt, is that something that would weigh on that scratch around the table? >> the increasing thing about household debt is we have moved short anda where both long-term rates seem to be much lower than we seem to think of. then inevitably you get a rise in anet prices and economy where people have

mortgages, you inevitably get a rise in household debt. there are lots of people having trouble with that surfacing, but the reason it doesn't matter and wages have not gone up as much is because interest rates are much lower. 140 does not feel that great but i don't see it as a fundamental problem. >> kate, you'll stay with us, we have a lot more to talk about. we will talk about housing. ♪ >> welcome back, the senior

adviser still with us. policy the biggest introduction that we need in the u.k.? is incredibly difficult to do that in the southeast and we know people oppose it. so we say that we need to do something about managing demand but they are terrified because everyone wants it to go up. we have to undercut this and say it is a lot to house young people and have to share space more fairly which may mean more tax and to build more houses. forhank you very much joining us, good to get your insights on the day the bank of england makes its big decision. i,that is it from on a and

" isnna and i, "on the move next. equity futures are indicated a little bit lower, stay with "on the move." ♪ >> welcome to "on the move," i

am jonathan ferro. moments away from the start of european trading. a busy day ahead. mario draghi's stress test. the reports of tension between draghi and colleagues at the ecb , is the pressure building once again for the ecb to respond? back in the summer it all seemed so good for the u.k. economy and fast-forward it has given forward to cautiousness as the

biggest trading partner is on the brink of another recession. another miss, another sign of weakness. what does it mean for the open, i am looking at futures, dax futures down around 20 points, really there are only two big main events. beit is obviously going to the ecb, where does mario draghi go? the bank of england, unlikely they will do anything but you never know. in terms of the market, the sentiment is much more to do with what is going on with other central banks versus the european central bank. this was the moment in time when the dollar-yen went 115 for the first time in seven years.