>> slipping below 60, crude oil falls in the u.s. as saudi arabia questions a cut in output. >> washington avoids shutdown as the house narrowly passes a trillion dollar spending bill. yen falls for a second day.y. live in tokyo with the latest. ford, thed ahead for chief executive speaks exclusively to bloomberg about selling vehicles in an era of low oil prices. >> consumers are a lot smarter

and they know gas prices can go down and up and they want to make sure the vehicles they are buying get the very best fuel economy. >> welcome to bloomberg "surveillance -- "countdown." high, what could be more seasonal? what could be more seasonal? we find the best ones. anna has had two. >> probably too early. expected in the oil price just yet? thinky or all analysts oil prices will fall more next week, we have had 10 weeks in decline since october.

in one of the weeks we see a hint of green but every other downs red. the uti crude almost 10%, brent contract falling 8%. we are expecting declines even further below. go -- low could oil blue oil go? many are looking so pessimistic on this overall. people who have the lowest to lose say it could go as low as $40. say -- it will stick to at least $65, their aura bouts. -- there or abouts. the head of iran says it could go as low as $40. i might remind you that below

$60 is already behind us this year. we know the reason why, opec decided not to rain back production earlier this year. isnwhile the united states producing more and more -- we have record amounts produced by the united states. with the shale, oil and gas they have managed to discover. we are now panicking that on top of the production not being reined in, we could see opec which is 40% of the world's production, might create a price war amongst itself because they are so worried about losing their own market share that they are rid loosing prices and increasing discount to asia. three players doing that. kuwaitrabia, iraq and trying to keep up their own market share. oil companies are being

affected by this. bp has further worries. >> this can't get bad enough for the producers. in 2010 in theen united states and one of the largest ever offshore oil spells , they determined that they were 60% responsible for causing the oil spill -- this was as ruled by the u.s. district judge in september. they are appealing this decision for the first time that they were grossly negligent when it came to this oil spill. deemed grosslyre negligent there exposed $18 billion in fines because it triggers the max potential

payout related to pollution. carl bobby a is going to be thinking in january and the jury trial that he will try to estimate how much responsibility bp has in terms of polluting -- finds per barrel spills? >> $4000 per barrel. is the max. the u.s. claims 4.2 million barrels were spilled and ep thinks it was about half of that actually, this is a company that already spent $28 billion in , thense to this oil spill set-aside $43 billion overall but obviously they are desperately trying to dampen the amount this could back up to. the accusations being flung at bp are phenomenal. they said they are reckless, willful, wonton conduct.

halliburton the cement services company was 3% responsible. bp feels it was not grossly negligent in the evidence they gave they don't think they were grossly negligent and don't feel and amounted to a willful theynduct, but remember had had multiple appeals already. they feel that the settlement arbitrator is handing out too much money. i don't think it bodes well for bp overall -- they're not having much luck. december 8 the supreme court refused without explanation to consider ep's claims that they were paying victims who were not harmed i the spill. it looks like these costs could keep racking up. this is the first attempt on

these grounds to stop the overall amount. 9:00, you won't what to miss our exclusive interview with franklin templeton mark mobius. stay tuned for the pulse. a 1.1 trilliont dollar spending bill to fund the government through september with the help of jamie dimon last night. the white house supports it and some democrats are howling mad. hans, why his jamie diamond in supporting this bill? as a specialsion itvision for the banks, that would take away a key point of the dodd-frank phil and that it ford provide a carveout banks to continue to trade their riskiest assets with the backstop of the federal reserve

and the fdic. democrats cried bloody murder over the provision and said it was unrelated to the overall spending bill. trillion that funds the government through september of next year and there were reports that jamie diamond was calling democrats asking for their votes and there is clear indication that president obama was calling up democrats. the vote itself was pretty bipartisan, the final vote was 219 four and 217 against. if you want to donate to either political party, you now have 10 times the opportunity up to $324,000, not ghost of the senate to see whether or not they can pass this and there may be objections. >> not all about spending it seems. is it going to be smooth sailing in the senate? the way the calendar works --

the deadline is monday -- they passed a two day extension. you could have senator ted cruz a republican from texas or a elizabeth warren a democrat from massachusetts and she is particularly incensed, here is what she tweeted. citigroup is holding government funding hostage to ramp through its own government a lot provision -- join me in opposing the citigroup shutdown. this is an indication she may do a procedural objection, it may have some more pickups. we should be watching this closely today. thank you very much. citigroup shutdown, fascinating. >> the road ahead for the chief executive from america's second-biggest carmaker speaking

exclusively to bloomberg about the roadmap for 2015 against a background of a slowing global economy, ford is expecting much from its new f150 truck which is america's best selling vehicle. ford's chief executive says in an era of low prices consumers have an eye on it economy. >> when you look across all the segments, people want great fuel economy. theirant to make sure dollars are stretching further. gas prices are coming down so is putting more money in their pockets but consumers are a lot smarter and they know gas prices can go down and up and they want to make sure that they are getting the best fuel economy and that's why we are the approach with the f1 50 in all of our vehicle lines so they know that ford fuel economy is a reason to buy. >> forgoes and the new year with

an updated version of its mustang which they hopes will sell well outside of north america. russia could be challenging in the year ahead. >> even on the most difficult times and russia is a difficult time, when you step back and look at the diminished expectations of the marketplace is around 2.2 million units which makes it one of the biggest markets in europe. there is never a bad time to introduce great product into a marketplace so the plant we are just opening is introducing our echo sport which is a small suv perfectly suited for the russian marketplace and we want to serve our russian customers so as we look at the business want to make sure we are dealing with the is this environment and continue to work our plan and play through it because we think it is an important market going forward. >> you can join the conversation on twitter as the declining

price of oil changed the amount you view to your car -- may be more in america because there is a bigger tax burden here -- anna @annaedwardsnews. >> coming up of the program today, mario draghi says the european central bank will have to do more to reach its balance sheet by the end of 2016, can he make it? ♪ >> time for company news.

avenue home, the canary airbase to become the european house for the lockheed fighter brand. the united states has selected italy to be the service center for the 35's that are operating out of europe. it is a very significant decision because we are talking about a. a period talking about of 30 years, i high-level sophisticated maintenance out of italy.

it will mean substantial economic benefits and logical development for italy. is fun to london to seal a deal for beat p according to the daily telegraph -- four according to the daily telegraph. commerce bank's u.s. settlement set to top $1 billion. is in talks toer resolve allegations that the german bank wrote anti-money-laundering and sanctions laws. transferring its engineering operations out of russia after the government stock it with new rules requiring more data to be stored in the country. engineering jobs

will be moved and the workers will be offered jobs in other countries google still plans to increase its business investment and russia where it has 31% of the market. anp indexes headed for 1997.rst week since the rough spread to greek bonds on thursday. now is the senior economist at baron berg. spectacularlyh a brilliant fashion the process of the vote, that is where we will start. many viewers won't know what happened or what needs to happen, will you explain for us the process of this vote for the next greek president? it is five rounds altogether but we will probably just see three. the first two -- the government needs an absolute majority -- a

two thirds majority and the third one which is the crucial one they need the majority in parliament of 60% or 180 are limitary and's out of 300 and the government only has 155 -- they need to convince 25 because if you are limitary and's are in jail -- some of the right wing ones so that may reduce the task a little bit but it will still be very difficult. a pretense who they -- depends who they present as a candidate. there is a member of the establishment may be the first couple of rounds but for the q -- crucial round they may have to find a compromise candidate. this is the process that starts next week wednesday and by the end of the year we may have that third round. >> it sounds like if enough independent mps are concerned

about their own prospects if an election is called they might decide to vote for the government's choice of president to avoid an election. is that a possibility? we might not actually see an election which is what markets really fear. -- the is the case government may still win the election and the fact that they are calling them shows there is some hope our confidence that they can convince enough opposition. one of the reasons being that according to the polls many of the small parties between the conservatives running the government and the major opposition parties will be squeezed -- they will all lose their jobs. if they find any excuse, a good compromise candidate or a deal the i am isat means leaving, they may vote the government and that will postpone the elections and that's job security for these

are limitary and's. >> is the prospect really that bad? it begs the question. is the bark worse than the bite. >> they have softened their stance in some respects -- they're clearly saying they want to stay in the europe. +++

inconsistent with that -- you cannot be in the euro, default on your debt potential he and raise spending because the money has to come from somewhere and markets are clearly not going to give in to them. european partners are not going in if they just defaulted on their public debt, it has to come from somewhere and within the eurozone that would be very difficult they probably have to amend their policies even further. but investors are fearful that the work might still happen. >> if some are a remains prime minister -- if samara remains prime minister, remind me of other peacetime governments and how long it will take the reforms to bear fruit? >> it took a long time to implement the reforms but what happened and it is probably the biggest adjustment since the second world war -- we've seen of 16% fiscal adjustment gdp over the last five years which is tremendous. reformseen labor market and a cut in the minimum wage by 25%. that would hurt political sentiment anywhere. we are seeing the firings of public sector workers and we've seen taxi drivers and lorry drivers losing their licenses. they're beginning to pay off and greece is now growing.

it is beginning to pay off but it is still a very long time. >> it's come at a price. >> the economy is smaller than it was in 2008 and it will take a long time until they find jobs. thank you very much. >> will get his perspective on the ecb's attempts to increase the balance sheet. ♪

>> christian is here the senior economist at rick berg, the results of the long-term loans were made public yesterday, the magical figure was $130 billion, if you put that together with the first round of loans, 212 billion. ? what we think >> not quite enough for the ecb to agree to intentionally boosting the balance sheet by one trillion because the net effect is likely to be negative because we still have 270 billion of repayments from the last round. operations areg probably not going to contribute air he much to the ecb's one trillion target or intention of loosing the balance sheet, has to come from elsewhere and so far we have a bs purchases and covered bond purchases but if

you just literally extend the trends on which these purchase programs are the covered bond program would enter 350 billion and a bs which is just started about 30 or 40 billion, there is a huge gap. >> the point is to extend lending to household companies, is that showing any sign of success? >> that is a quite exciting thing to look at, so far we have lending data from the ecb until october. that is also when they announced the results of the comprehensive assessment which is probably spread some uncertainty, from november onward that effect is gone and we also have the effect of the first round of trt we also have more funding from the effect of the purchase programs so lending should turn around but so far no sign of it. abe get to come, will

more of a mandate? we are live in tokyo. ♪ >> welcome back, you are

watching "countdown." let's look at what is happening to the norwegian currency. falling for a third a, note to prize this is all to do with oil prices and the reaction that we saw from the norwegian central-bank. the central bank cutting rates yesterday. this is western europe's biggest oil producer and yesterday we had the biggest rate cut in two years. flagged -- the central

bank flagged a 50% chance that policymakers will cut again next year. what does this mean for the ?roader norwegian economy they said drop in oil price means it is a drop in investment in norway. that's what they are reacting in bringing down the growth profile. this has been hitting the norwegian krone against the dollar as you would expect. ats currently trading 7.3232. oil has fallen by 34% to less than six dollars -- $60 as we well know. against the euro, the krone has been the worst performer.

down by 8.2% so far your today. -- year to date. >> oil prices continue to slide and prices dropped below $60 a barrel in new york, the first time since july 2000 and nine. -- july 2009. saudi arabia questions the need to quote -- cut output. in washington, the u.s. government has narrowly avoided a shutdown of the house, narrowly parked -- passed a $1.1 trillion spending phil. they describe it as a giveaway to large institutions. some republicans were against of thel because confrontation on president obama's immigration policies until next year. the president has two days to pass the legislation and jack

mock has become the richest person in asia. helped by a 54% surge in alibaba shares and he is now worth $28.6 billion. the he replaces as asia's richest person is the asian property tycoon who said he was pleased to see him people from china will. there is a place in london offering the most expensive wine, if the restaurant and champagne bar of 60 pounds per glass so we headed down to take a look. it is the case this christmas -- the taste this christmas. their mold wine is amazing.

on the general manager of the restaurant and champagne bar. >> people come up and it is a surprise when they see the price tag but when they try it they say -- this is worth 60 pounds. >> 60 pounds? probably a little bit out of reach. wine you willmold find a rich border and perfect champagne. >> can i have another sip? fruity. it doesn't burn the back of your throat at all. >> what to keep people in the bar longer so they enjoy themselves. up too muchthe heat , the alcohol will eventually go see have to be very precise and so 60 pounds is the perfect price for this drink.

this will be available to the 31st of this year, please don't kid spill anything because that drop will cost you five pounds.

>> it is that time of year again

when we are 44's above the city of london. i'm here with daniel, the executive chef. how are you doing? i do one per year. you pick a good one. this is an interesting one, it is a minione. traditionalists would disqualify it but i think it is quite nice. it's really crisp. that is a good pie. that is an eight. >> how's that? >> i think that looks like a real mince pie. that's what it looks like to me in my head.

it is a little bit dry in the middle and hollow as well. there's a subtle flavor in the pastry. i quite like this on top as well. >> it's very unique. >> it is unique. mince pie i am not a person it is probably more up my street. that is a good one. >> a little bit on this. this is a nine. >> that's my cup of tea. you say you're not a big fan of these pies. >> this is the winner.

if i would buy want to take home it would be this one. >> thank you so much. >> thank you for asking me. welcome to "cereal killer cafe the first ever's national cereal cafe. cafe.cial cereal >> we have always been fans of serial -- cereal. >> can i get frosted cheerios? >> small, medium or large? cereals, from america, australia and south africa.

about apple jacks? >> coco puffballs inside of it. giddy more sugar? -- do you need more sugar? milk,different types of almond, soy, skim and vanilla and chocolate. i think it's because we grew up eating cereal because it such fond memories of it. the fun that you had with it as well, it doesn't seem to be there anymore so that's what we wanted to create here. next lower house will have 475 lawmakers and prime minister shinzo abe once a majority to push new legislation through but what he really needs is a two thirds majority, at least 317 seats to ensure he has

enough support for his policies. so how does the election work. voters will begin in two ballots, one to choose an individual candidate which will account for 295 seat in parliament. the other is for party, each one is awarded in proportion to the percentage of votes. for the remaining 180 seats. >> to be honest i very low interest in this election so i don't intend to vote. i have not seen any achievement in the past two years even though i had much more expectations toward prime minister abe before. >> he has done enough to win the majority, he had clear directions and make progress in the past two years. i want them to be more aggressive in promoting japan's strength overseas. >> when it is all done and

dusted the two houses of parliament have 10 days to choose the prime minister.

>> welcome back to "countdown." it's best to beat up front, there was a fire alarm in the building in london and luckily it was a false fire alarm so we are back in business. time for the company news, development delays missing the

2014 delivery target. ferrari. costly as a a handover of american airlines first 787 but they need to achieve 40 deliveries in december. citigroup and goldman sachs are among 10 banks fined for failing to shield analysts from pressure to promote stocks. the regulatory authority find the firms a total of 43 point $5 million and the authorities is investment bank promised favorable research to toys 'r' us and its owners to win roles in the initial public offering. francisco startup is the biggest peer-to-peer lender, shares started trading at just under $25 and that was a huge jump from the $15 share price since the previous night.

6:50 here and london, over faces another road lock when a french commercial judge will decide whether to block their services. hans, it is not looking great for over is it? what going to learn today? >> we will learn whether or not you can share a chauffeured ride, this is the uber service in france. they have so many legal issues for a company valued at 40 billion u.s. dollars, they are facing a variety of headaches and legal issues across the globe we know about the headaches in india but focused on europe look at where they are allowed. green tells you the countries where they can operate that is the u.k., ireland, portugal, austria, which are lent and greece.

yellow is where they are facing ongoing court battles. i huge issue in germany in frankfurt, berlin and hamburg. france, italy and denmark and then read is where they are currently suspended which is couple- the big news a days ago and legal issues in holland. challenge, they are trying to make this a debate about openness to the tech economy, here is what the french economy minister had to say. >> it is to be sure you have the right level of qualifications to provide security. if they guarantee the right level of security they are part of this economy. the french government trying to make positive signs but it is in the court's hand. because we know you're such a flawed driver, do you use uber? >> you have this thing about my driving which is not healthy. >> i'm quite enjoying it. >> i will set you up with counseling. businesseseas for

often happen when someone can't find what they're looking for. angie coates with a classically trained musician who could find the right kind of music education for her daughter and now she runs a company which has successfully franchise music classes. a classically trained one minute. nationwide here in the u.k.. how did you make that transition? >> i deviated and teaching was my calling, i suppose. i began teaching and was completely overwhelmed about how children responded to music. i took that idea forward and created my own music program. theou decided to franchise

business, tell us about the process that goes into doing that. if you created something it is your baby and then you franchise that. >> i put a lot of work into developing curriculum and there seemed little point to doing it for myself. overtime people would say keep doing what you're doing and i had a cheerful conversation with my brother who was a lawyer and said what can i do about this? that was when i realized i had a business. >> for those who do not have children -- i have young children and have yet to try it, why is music so important? why is it so vital for their early development? >> music supports all aspects of development. and getgo today overwhelmed at the response the children have to music. skills -- their

language skills and social skills, with music we can support them and increase those learning skills. >> a lot of competition in this field now. something you started in the early 90's has popped up everywhere. how do you manage that? teamremain focused with my and we provide the very best -- there is a professional heart where music is the heart of what we do in education and we enjoy sharing our expertise. i suppose that is where i like to think we have it. >> can you talk to the importance of staying focused and not attempting to diversify? >> threat the last five years we are very proud that we've increased our customer base by 50% and we did that by focusing on what we are good at which is providing very educationally sound music classes. diversifying not

we shouted louder the things it we were good at as opposed to the bells and whistles that were less noisy. >> your profitable and making a lot of money in sales -- are you self-funded? >> yes. >> what is your advice to entrepreneurs eager to get into the field or any field? >> it is been an instinctive journey for me so i would say if you believe passionately and you want to make some thing happen then there is no reason not to give it a go. us asie coates joining the founder of monkey music. >> "countdown." continues in the next hour. hopefully we won't have any more fire alarms talking with ford about the new range of vehicles for 2015.

>> dipping below $60, crude oil prices fall and the u.s. as saudi arabia continues to question cutting output. >> in the u.s. the house never really passes a $1 trillion spending bill. polls the suggestions lobby will be reelected -- holes suggest -- polls suggest be reelected.l we will be live in tokyo. >> consumers are a lot smarter this day they know gas prices can go down and up and they want

to make sure they have the very best fuel economy. >> welcome to "countdown." have you had one of these yet? es.ce pi we found the best that money can buy. >> i have had two. let's get back to our top story, a torrid week for oil with prices sinking close to 10%. here is caroline hyde. when youound expected look at all the indicators this morning? today, down 10% this week with rent crude up right 8% this week, most analysts think it will be a down week next week, 10 weeks we have

had a decline since october. been it looksas like it is set to decline next week as well so there are all these panics in the market -- largely of course catalyzed by opec not reducing production. now there seems to be some hint of a price war happening among three big producers, saudi arabia, iraq and kuwait saying they will discount more heavily in asia because they want to keep hold of their market share. of course you have record production being pumped out by the united states so this is all coming at a difficult time. >> how low do industry experts think oil can go? $60 and welready sub

could go lower than $40. that is according to the head of iran's oil ministry. he says if we continue with this price war that is unraveling and the divisions that escalate within opec that's the effacing to divide any war we could see it going below $40 per barrel. now the ceo says we will definitely be below $65 for the wet six to seven months -- will be pleased at the petrol pump but not if you bring it out of the ground. weeks been in focus this but it its share price suffered because of the fall in the oil price but then it cannot with client suggesting its business and even these are the only things they have to worry about at the moment. into thousandll

10 -- they are still paying the price. oil spill offgest the net it states and today they will be launching their first appeal from the u.s. district judge. he said that bp was grossly negligent and therefore the they wereth saying responsible for the oil spill but the grossly negligent part was important because it means when he comes to assess the cost it ramps up the amount that bp would have to pay. that is underneath the clean water act. it seems the u.s. claims that

millions were spilled but bp claims it is half of that. they are on the hook for much more money -- $18 billion worth. they say the evidence we gave in the trial does not support this they don't think it amounts to willful misconduct -- some of the terms and phrases have been really harsh and reckless and once on in its conduct. only onethe responsible. we understand the rig owner was deemed 30% liable and halliburton cement, with 3% responsible but ep is trying to launch the first of its appeals that could come in a whole raft. meanwhile, the lawyers representing the victims are also launching their own appeal against the ruling made in thatmber because they feel

this could be far worse. they feel that bp should overall quality time -- qualify for punitive damages which would escalate the cost even for their. -- further. they had not had much luck recently and on several attempts they've tried to appeal the settlement -- a $9.7 billion settlement on economic damages they have to pay out at the moment. also the u.s. supreme court refused without any explanation to consider the bp claim that settlement's claims were paying those who had not been hurt by the disaster. the take away is that bp is starting to appeal the overall ruling in september that they were grossly negligent. >> coming up at 9:00 here on bloomberg, you will not want to miss the exclusive interview

with mark mobius who will give , ahis take on oil, japan merging markets and much more. that will be on "the pulse," coming up later this morning. u.s. vowed to pass a 1.1 trillion dollars spending bill with the help of jamie diamond. democrats are howling mad. washington,er to hans has than a few of these in his time -- why was jamie dimon supporting this bill? -- it isis a provision a 1600 page bill but there is a provision that rolls back one of the regulations in the dodd-frank financial services regulation bill which is the carveout. this is the idea that banks have to restrict their riskiest trading and not have it backstopped the federal reserve or the fdic -- it is a crucial provision that banks have in pushing for and they slipped it

into this larger bill of $1.1 trillion that funds the government through september. he was making calls and some lawmakers said jamie diamond was making calls -- their argument was you need to fund the government to keep u.s. economy growing and humming and build on this job growth. there are some other unrelated provisions -- namely the donations. the amount you can give to either political party has increased from $32,000 to $324,000. will do nothing but increase the cost of political ambassadorships. some donors will be pretty upset because they can say -- i am tapped out and now $324,000. now he goes to the senate. >> will it be smooth sailing in the senate? >> i will try to stay away from the procedural complications but

there is a chance that either ted cruz or a elizabeth warren 48ld object and they have hours to have a single vote and elizabeth warren is signaling she may be pretty upset. here's what she had to say. citigroup is holding the government funding hostage to ramp through its government bailout provisions -- join me in opposing the citigroup shutdown. the question is, will she object? this does not seem to me like it is a done deal in the senate and there are a couple of other hiccups. last night president obama signed a temporary funding measure. we have some more to hear. >> big breaking news. ceo -- limit start that again. gucci says that it's ceo, creative director are to leave.

they're saying the new creative director for gucci is going to be named later and that marca bazarri will take over as the ceo. a company that manufactures luxury clothing and jewelry. >> it was only in october that she was named this chief executive. in october it did say that gucci's third-quarter sales fell by 1.9%. it was makingaid the gucci brand appear more exclusive but it weighed on revenue growth. the change on their units. >> we know who will be the ceo but not who will be the creative director, that will be named later? >> what is the road ahead for

ford. the second-biggest carmaker is speaking exclusively to bloomberg about its car map for next year. ford is inspecting much from its new f150 truck. the chief executive says even in an era of low oil prices, consumers have an eye on it economy. >> when you look across the segments -- people still want great fuel economy. theirant to make sure dollars are stretching further and right now gas prices are coming down so it is putting more money in pockets. consumers are smarter -- they know that gas prices can go down -- up, and they were to make sure the vehicles they are of the best fuel economy and that's why we're taking the approach with our the approach with our online survey notochord fuel economy is a reason to buy. anfor those of you your with

updated version of its iconic mustang which they hope will sell well outside of north america -- pressure could be a challenging market. >> and even the most difficult times in russia is a difficult market, you have to setback. you look at the diminished expectations that is around 2.2 million units and that still makes is one of the biggest markets in europe. a bad time to this great product into the marketplace and apparently this is introducing our echo sport which is a small suv -- perfectly suited for the russian marketplace. is a russian customers so we look at business to make sure you business environment and played it because we think is an important market on board -- important market going forward. >> as the price of oil changed

your driving habits? many of you will be driving, particularly in the united states where the tax on a gallon is far less than it was here in europe. program, theon the pressure is building on the european central bank president mario draghi to do more. they're expecting additional quantitative easing in the eurozone. stay with us. ♪ >> time for today's company

news, the jet has a new home. it really's canary airbase will become the european spot for the maintenance of the lockheed fighter plane. the deal is a boost for italy. the united states has selected italy to be the service center for the f 35's that are operating out of europe. decisionignificant because we are talking about a. of 30 years. very high level, sophisticated

maintenance and upgrading of these planes. substantialn economic benefit and technological development for italy. >> the chairman of telefonica has flown to london to seal the deal for bt. that is according to the "daily telegraph." they will attempt to close the deal over the weekend. bt has been in acquisition talks between those two. set to topments is $1 billion, according to the financial times. the german lender is in talks with authorities to resolve allegations that the german bank broke money laundering and sanctions laws. the settlement is at least $400 million, more than previously thought. google is moving its engineering operations out of russia.

the financial times reports that fewer than 100 engineering jobs will be moved. despite the shutdown, google still plans to increase his this investment in russia where it has a 31% surge market. as u.s. oil extends losses below $60 per barrel, brent deciding to the lowest prices 2009, our next test joins us to talk about the impact on your investment outlook. how do investors position price -- afor an oil u.s. oil price below $60? >> what we have to recognize is what has happened in the past few weeks has been a real shock to market expectations about how things can change. it wasn't that long ago that people saw oil prices going up to hundred $50 forever and now it was down to $38 and people saying it could go down to $10.

the reality check is once oil starts to move in one direction and people perceive there is a degree of permanence -- markets start to adjust. we've seen the first reality shock which is volatility -- you see that for the energy sector and stock rices and people making the instant translation of what does this meek -- mean for outlook production, etc. as we recognize the fundamental environment is talking about oil prices settling between $50 and $75 -- we're seeing responses in japan and overnight. let's think more about what that means. investors are looking at this consumer income benefits of lower energy cost feeding through into an economy which is not growing that much in western europe or asia but certainly in japan. u.s., we'reat the already seeing people starting to anticipate this as an economic boost, so the shift

from uncertainty and concern that the oil price stocks is leading more toward what does this mean for growth and output and that is becoming more of a positive. >> any short-term weakness we're seeing in equities -- directly because of the falls and energy companies or share prices or because of other volatility concerns -- is that all short-term? >> i think it is a boost to equities. people talk about oil markets were electing -- reacting negatively, it is the volatility we are seeing. --re is an element to which if you look at single headlines and think does that mean subbing has changed? what has changed is the market realizing this is a sensitive environment. people are selling dollar-based commodities and buying dollars -- the reverse of what we saw in two dozen 10 and 11 which is the short dollar trade. 1.20r-yen pushing to the

aerial. -- area. underpinningsntal of market decisions change, oil prices and gold prices and exchange rates -- we are beginning to see the market and think for 2015, what does this mean? and for the perspective it is a more positive environment. >> say that thought, what does it mean? ♪ >> welcome back to "countdown."

tore back with our guest about which sector he is investing in at the moment. we were talking about the oil markets, stephen schwarzman saying yesterday in the u.s. that it is the best time to invest in energy -- do you see it as a time to buy energy? we know aboutng energy stocks is they are in this environment of significant uncertainty and you do get uncertainties when the market does not know how to price the reality of where oil prices are going to be, the baby gets thrown out with the bathwater. ,f you are brave enough to say this is a very cheap stock, it might be would group or we're or if oil prices are

$50 a barrel, these guys have no chance, the market is overselling some of these types of companies and if you do believe that it's is going to be an overshoot and we will see a more save it -- stable $70 a barrel next year there is opportunity to pick up those names because the market says i cannot take the risk on them now and if you have a long-term view you can take the risk. we see that appearing with the resources and energy names but that does not mean you have to buy today. it just means the sectors are ones where there is risk in volatility and were most of the market in europe in particular is fairly fully valued for what is a lackluster economic outlook for 2015 for continental europe. we are positioning ourselves for 2015 -- this dollar story and this low energy cost story and a list of consumption story and

with what has been going on in greece there is a lack of contagion story going on. i think market confidence is about exposure to equities. that appetite has improved and oil and commodities are the sectors where people are saying -- this part we don't know. >> everything else is fully valued? industrial, consumer related, defensive, where else to we look? >> within a relatively fully valued market you have to look or stocks with credible valuation outlooks and trends. it doesn't mean i'm not is counting a decent growth outlook . i will be getting a return on that. i wouldn't go defensive but you can buy something like zeneca today and say this is a stock i'm glad to have in my portfolio, it is not -- expensive and had a selloff recently but we see strong value underpinning your portfolio.

the market is adjusting. >> thank you very much. the founder of libra investments. uberother roadblock for facing a challenge in the french commercial port. ♪

>> welcome back to "countdown." time to look at fort exchange markets. the norwegian krone has been under pressure or three days trading weaker against the u.s. dollar. no surprise this stems from the weaknesses seen in oil prices. we have a year today chart of what has been happening and this shows it weakening through second half of this year. the second half reacted like cutting interest rates. this is the second against oil producer which is why the oil

price matches so much to the norwegian economy, yesterday was the biggest rate cut we have seen in more than two years. a severe downturn is the major concern according to the governor yesterday. a 50%vernor also flagging chance that policymakers will cut rates again next year. he was pointing out the links between the oil price and the norwegian economy saying because of the week price we see norwegian business investing less -- particular oil businesses -- investing less and the economy and that ways on gdp. on gdp.weighs oil prices have dropped 45% from their june high until now. krone -- it very

much matters what was done against the euro. against the euro the norwegian krone was the worst performer of 16 major currencies this year down 8.2%. >> easier the top headlines. , oilrices continue to drop down below $60 a barrel for the first time since 2009. the cost continues to question the need to cut output. saudi arabia, kuwait and output offering the biggest -- deepest discounts the exports in asia in six years. the u.s. government has narrowly avoided a shutdown is the house narrowly avoided passing a $1 trillion spending bill. some republicans were against

the bill because it defers confrontation on president's of obama immigration policy until next year. passenate has two days to legislation and the founder of alibaba has become the richest persian -- person in asia. helped his -- he was helped by a 54% surge in alibaba shares. the man he replaces as asia's richest person is the property tycoon. he says he was pleased that young people in china too well. let's move on, change at the top of gucci. a big deal for the luxury sector. >> it comes as no surprise because gucci has been a thorn in the size of karen group as of late.

we saw that there gucci sales largelyost 2%. it is asia where it is the problem. china and hong kong with pro-democracy, but also buying overtly branded and luxurious goods. this is from louis vuitton and gucci who have been seen as having -- too many logos, not subtle enough. >> less is more. >> exactly for the u.s. it has been going well but for gucci it has not been a pleasant couple of years. finally enough the ceo and creative director are to go. he says he wants to see new momentum and they were to continue to write checks. the new ceo coming in is marco

bizarri. ofwas recently appointed ceo the luxury coach shore and leather goods division. he also headed the take of. this is in -- he also headed bot ego. >> i wish francine was here sometimes. is replacing dimarco. he has been the jewel in the crown of them, the brand that kept that a luer of exclusivity. interestingly the prominent brand that continues to outperform their pinching their talents on. that seems to be the training ground. the new leadership. but no new creative directors yet? >> could we have another

moderate problem on our hands. mulberry problem on our hands. will leavee director her position february 12 and 15th. that happens a 25th of february and after that she will leave that they have not yet appointed a new creative director but she has been a gucci a long time. back in september 2 dozen to she started lead designing handbags of gucci and then took over as creative director 2006. both of these people are celebrated within the statement that has come out today. don't forget the legacy of gucci, they've had a bad time in the last year but this is a 93-year-old fashion house. they have managed to really drive up revenues and have managed to expand their brand internationally and they say

look, they're one of the most leading and prominent luxury brands out there but it has been a bit difficult, perhaps not that much of a shock to many. they're rearranging their cards. they really are changing the deck. let's talk about uber. they face yet another potential european roadblock when a french commercial judge will decide whether to lock uber services. hans, it is not looking great on the continent is it? >> today we will learn whether or not the uber pop up service -- shared chauffeur driven cars -- whether that will be legal in france. a decision we expected this afternoon but it is part of a series of legal roadblocks. $40 billion and yet all across

the globe they are having challenges. in india there is an awful rape case reported and they are banned in spain -- let's look at the map of europe and see where uber is allowed. of course they are allowed in the u.k., ireland, portugal and austria. they are facing court cases in the yellow in germany, france, italy and denmark and their outright suspended in spain and holland. what uber is trying to do is shift this to the conversation -- our european countries willing to participate in the tech economy. through the allowed to operate in france as they abided by the rules. here is a quote from him -- to be sure you have the right level of qualifications to provide the security. if these new startups guarantee the right level of security they

are part of this country. now this is the part what i normally tease and upper driving ability but i will only say i wish i had used an uber myself because i biked in the rain. >> don't do that hans, it is very last hour. we turned over a new leaf after 7:00. >> if you would like to comment on my driving skills -- please do. you can join the conversation on twitter. tell us which stories you would like to hear more stories about three -- about. >> our next guest says we will see some diverging in the new year, as the fed goes their own way and the others go their own path. find out what it means for fixed income. ♪ today's bart chart.

can russia stop the ruble decline? ruble fallstop the on thursday to fight -- despite raising rates to 10.5%, a ofpped 1.6% to a record low 55.7 to the dollar.

this is a chart showing the ruble versus the price of brent crude into thousand 14. it is very clear that the white line is ruble-dollar and the orange line is rent crude. this is the ruble-dollar rate not the dollar-ruble rate. it very clearly shows how the ruble is mirroring the price of brent crude and also clearly shows how rate hikes this year have not halted the ruble decline. the first one is the red circle on march the third -- that is when the main rate was raised from 5.5% to 7% in the next hike came on 7%, when rates were put to 7.5%. on july 25 that is the green circle, rates were raised to 8% and then october 31 -- the pink circle, rates were raised 10 9.5 percent from a percent and

thursday, the bank of russia raised rates to 10.5% and that is the blue circle. , the ruble is down by 42% against the dollar. guess how much brent crude has fallen this year? 42%. they have literally moved in tandem in the bank of russia seems powerless to stop the fall through raising the cost of borrowing. that much is clear as long as the price of crude keeps falling. the central bank has a tricky situation on its hands and it is running out of options to stabilize the ruble without inflicting deeper damage to the economy. on once i do want to stabilize the currency but on the other side of the scale of rate increases required to do that would further strangle the economy on the verge of recession -- it is a real

dilemma for the central bank and russia, investors await the next move. >> the political race in japan is entering the last lap ahead of sunday's election. sherry and reports on how it will work. the next lower house will have four hundred 75 lawmakers and prime minister shinzo abe once a majority to push new legislation -- legislation through. what he really needs is a two thirds majority, at least 317 seats to ensure he has enough support for his policies. how does the election work? voters will be given two ballots, one is to choose an individual candidate which will account for 295 seat in parliament. the other is for party -- each one is awarded seats in proportion to the incentive of votes.

i have a very low interest in this election so i don't intend to vote. i'm not seen any achievement in the past two years even though i had much more expectations toward prime minister abbe before. done enough toas win the majority, he had clear directions and i think he has made progress. i want him to be more aggressive with promoting japan's strength to overseas. i would go for the vote and i would continue to support shinzo abe. dusted is all done and they have two days to choose the prime minister. >> that is sherry and reporting from tokyo -- bloomberg's sherry e,d reporting -- sherriann reporting from tokyo. the love to hear about flows -- what are they telling us about the key trends?

>> so far what we have really seen and it has continued is the strength of the u.s. equity market is really incredible. record flows going to u.s. equities in the last three months which reflects this positive feeling about u.s. economy in a relatively weak global economy. that is the first thing -- the second thing is we starting to see investors come back to europe and that is after a number of months were the expectations have gone lower and lower. relative to where growth expectations aren't we think things may not turn out as bad everything is relative and that is attracting money coming back to europe. on the flipside it is emerging-market equities which we are we have seen a number -- a number of dollars coming out of emerging-market equities in the last couple of weeks and that reflects what is happening with central banks and the pressure on emerging market currency and the impact on some

emerging markets and what is happening with oil is putting a dampening effect on broad equities. >> it was interesting to see the reaction we saw and markets to the nervous is -- nervousness now and markets around greece and what the results will be and whether it leads to a full off general election. but the strength of that and the fear of what could happen seems to be expressed in equities -- not to the same degree we saw. what explains that? are you worried from a fixed income perspective about greece? >> i think what we are seen in fixed income is there is been a .ispersion between countries if you go back two or three years ago, if there is one shock to one everything sold off in the same way but now you see a significant dispersion and greek debt has struggled over the last week. if you look at italian and spanish bonds it is weaker but nothing significant in the

context of where we are today is the ecb and it is a huge game changer for prolific -- proliferative bonds of easley two years ago and what may happen over the next months is a big driver of debt. unless you get to a situation where it looks like greece really escalates into more of an x essential eurozone question which is where we were a few years ago. existentialal -- eurozone question which is where we were a few years ago. see spanishinitely and italian bonds tightening, if they move to full-blown it isign qe, but a lot of being done and the big moves are over. that is a big challenge into next year because it is a very

profitable position and a big income generating asset where global bond yields are the lowest they have ever been. >> if you are going to buy your nearest and dearest a seasonal gift, what would it be? >> that's a good question. the main area we receive value remains in european financial bonds and it was there you have similar to what we experienced this year you have a situation where the banking system is deleveraging. we are only part way through what needs to happen which means the banks are not raising debt and thanks for the on ensuring their capital. that's very supportive of financial credit in europe. the more the ecb buys, things like cover bonds or corporate up to-- it is sucking think part of fixed income market in europe. >> everything is on the table it

will -- table but gold? >> would you be surprised to see them buying non-sovereign -- that would be fairly surprising. go -- could the ecb the ecb go? >> corporate activity -- does it really make any difference -- corporate debt to me -- does it really make any difference? atf equities like ngsdo they go and buy thi like etf equities. challenge to get sovereign debt to a good degree politically, to move to buying equities would be a massive step --

>> you're looking at a live shot at the city of london. does it look dark? it was dark when i woke up today. 100 futures down by one half of 1%. ♪

>> just a couple of minutes to squeeze in the final thoughts.

let's talk about japan, a big weekend ahead. shinzo abe putting his policies to the vote once again. get --ooks like you will he will get the votes that he needs to extend the mandate and get his trial run to get japan out of the mess that it is in. he needs to fight back against the old guard. it is very reminiscent of kazum in 2006 because the third hour is the big our. in the short term, post elections we are seeing earnings supported by the weaker yen and the oil prices are a positive for japan. we think we will start to see wage inflation coming through as well. definitely some positives. caveat is that it has become a consensus -- >> a slight long dollar. thank you so much for joining us

this morning. ," is next.move we will see how these companies open in a few minutes. ♪ ."> welcome to "on the move

moments away from the start of european trading. a very happy friday to you. let's get straight to the morning brief. oil continues to collapse to levels we have not seen in five years. crude drops to $60 a barrel, down 10% this week. no sinopec will move to tighten supply any time soon. that opec will move to tighten supply anytime soon. again heads to its biggest weekly gain so far this week. the luxury company -- luxury

shakeup. hugo boss's largest investor gets set to sell 7% of the company. that in 10w you seconds time. futures a little lower across ainland europe. we're looking at dax futures indicating a drop of 1%, down 99 point. we may get a lower open. let's get to caroline hyde. in theil sales helping u.s., but it looks as though the warm winds from asia aren't going to flow to europe. we are expecting another down day. barclays calls it oil lead to volatility. check out the fix. it's going to be the worst week in two months. we see the ftse 100