>> the fomc holds steady on ofes, but drops warnings global risk to the u.s. economy. reset slopesowth growtha of a minimum 6% for the country. >> the bank announced the plan ahead of the earnings and the ceo first strategy update to investors. a warm welcome to the show.

anna: it has just gone 6:00 here in london. china is your new number of the day. >> 6.5 is the number we are having highlighting a minimum growth estimate for what the country needs over the next five years. not quite so straightforward to transfer into that a new target for the government. 6.53% specifically. manus: quantitative easing is not the road they want to go. rate in theinterest united states of america. all based on the fact that she did it. meeting ise december live.

this is a spike in the two-year government bond yields. concerns about the international state of play, less concerned about that. anna: we have seen this reaction in the two-year and the dollar and we also saw a reaction in the government bond market more broadly. 48% chance of an interest rate hike in december. agenda.the european manus: we will have barclays, deutsche, the big exposure to brazil. nine-month ordinary profit comes in at 5.1 billion euro. that is the top line for them for the nine-month numbers. the bad loan ratio drops to 4.5%.

that was 4.6% at the end of the second quarter. the buffers of capital, core equity. got?have you anna: i have the numbers out of sony. second quarter operating profit of ¥88 billion. a little bit lower. it is weaker than analysts had been forecasting. they are raising their full-year 2015 sales forecast and that is -- there was some expectation that we could see robust demand. let's get over to yvonne. yvonne: good morning. let's talk about the sony shares. this after the market closed,

but we saw the shares up for the day. reports that the james bond movie did better on the first last james did the bond movie. you mentioned those weaker than expected earnings. overall, a mixed picture in the asia-pacific. we are down now. after the fomc meeting, signaling a december rate hike, back in play. we are looking at one of the best months since may 2009. we searched about 9%. japan, not too much direction. surprising rise in industrial production out of the economy. december. for that japan may not

have entered into a recession. we will see how that goes. still a lot of data coming out ahead of that boj meeting. we have household spending as well as inflation numbers. one big number we are talking samsung,and korea, talking about the longest winning streak in six years. it gained eight days straight. profit missed estimates, but a big gift to investors. they will tap into that cash pile and buyback $10 billion worth of stock. nintendo, falling the most in nearly two years. their mobile lap game -- app game, they will be delaying for at least two months. ena, this wasith dna ♪

supposed to be nintendo's debut into the smartphone app game market. some pressures from investors this morning. manus: yvonne, thank you. we have a few more numbers. third quarter net income comes in at 1.6 8 billion. despite the huge depreciation on the brazilian riau against the euro. this is what the market will be focused on. 7.9 8 million. anna: the chipmaker is heading for a downbeat forecast. it ties into all of our conversations about china. they are citing lower consumer spending in china, talking about

how the market chris of -- progressively deteriorated in the third quarter. it ties into the whole growth story in china. partys top communist officials are thought to be planning the reduce their ambitious 7% growth target. and unveiled -- an annual growth figure of 6.5% that he said would be necessary to establish a moderately prosperous society. the communist party concludes its four-day gathering to discuss their five-year plan today. manus: david tweed is standing by. we spoke to you at the start of the week. we are getting more details over the next 10 days. this is a rather precise number. the minimum growth. don't forget the .03.

reallythey must've been doing their numbers. truth be told, this is a number we were talking about at the beginning of this week, you and me. yes, indeed, about 6.5% is what china needs in order to achieve the goals that have been set by xi jinping of reaching a moderately prosperous society. capita incomeper by 2020. that is what it means. the fact that he came out and gave this number is an indication that this is a number which has been approved by the communist party and it sets a limit on what the growth target will eventually be when the five-year plan is published. anna: anything else expected from the main -- from the

meeting? david: don't expect too much. all you would get at the end of the day is the broadest of outlines. this is a wide-ranging plan. we will get the draft, the draft will not have any numbers in it. we will have to wait until the spring to get the numbers, including what the new growth target is. guys. manus: thank you very much. the federal reserve officials have entered december -- have hinted december may be the first time we see interest rate hikes. the fomc voted to maintain the status quo late last night. danny blanchflower joins us from new hampshire. his first interview of the day.

thank you so much. what do you make of what we heard yesterday from the fed? is this a pivot towards december? >> here we go again. we really would like to raise rates. ways, -- the data does not suggest they should go. inflation, there is no wage growth, and everybody else is easing. we will see on the strengthening dollar, not very great numbers coming out of big american companies. ford reports for earnings this week. -- reported for earnings this week. -- poor earnings this week.

this is really wishful thinking. much ado about nothing. i suspect there is a big split within the community -- the committee. manus: a very good day to you. -- this is one of the interesting facts. i read a piece overnight and he is quite impressed by the unity that we have seen, that there is only one dissenter. janet yellen has done quite a good job bringing the cabal together. it together, but we have heard quite a lot from both sides. that she is not

with moving. we have seen lacquer, but there are others. there is a split in some mice. only one person has voted against her, but the moment they go, my suspicion, we may well see three people voting against. you might see three people going against as well. janet has to decide, which group is she going to be with? there are strong voices on both sides. we have to really watch the data. we would like to go with following the data. every single time, the data has not been strong enough to go. they want to start, but that is what they have been saying for a long time. anna: they want to follow the domestic data, but they have been distracted by the international situation. referencedropped that

this time around. without the right call? danny: -- was that the right call? denny: what has happened since the last meeting is the ecb has made it clear that they intend to increase the amount of easing. the chinese doing the same thing. yes, there is a drop of those words, but we are in currency skirmishes and everybody else is listening and it makes it tough for you to do the same. they are not astrologist. we are saying it in june and that did not happen. and we are saying it in september. you go in december and the next move is actually that you cut to negative because the president

of all of the other central raised their006 next move was to go back again. that concern.se we just heard from china. china says they need 6.53%. in terms of growth. is the world really in such a tortured place that the fed, their hands are tied? it really does tie their hands. danny: let's add another thing to that. there is no inflation. despite the fact that there are concerns about what has happened to oil, we know that pce in

america, excluding food and energy, has continued to fall. yes, growth around the world is very anemic at best. there is no inflation. there is no inflation. 17 countries in europe that are in deflation. the scale of this deflationary shock is major. they are also fighting against fiscal policy around the world. we have seen all of these moves in the u k. central banks are fighting against this inflationary shock around the world -- this disinflationary shock around the world. anna: thank you very much for joining us. professor of economics at dartmouth speaking to us from new hampshire.

where it is very late -- or early. whiskey, we are not sure. anna: we have the numbers from air france this morning. 898 million euros. that looks to be ahead of estimates. talking about the sector as a whole, higher traffic, lower fuel costs. for some of these airlines, the --dance could be cost us cautious. manus: we are also waiting for the lufthansa numbers. it is very much about the labor disputes. we are waiting for the lufthansa numbers. cfo: we sat down with the of air france. coming up later on in this show.

manus: it was a strong summer for european airlines, but how competent are they -- how confident are they that they can weather the winter months ahead? the next set of airline numbers to cross the bloomberg terminal. ♪

anna: welcome back, you are watching "countdown." manus: federal reserve officials have hinted that december may be the first time for the first interest-rate increase since 2006. fomc drop the reference to global risk. the next meeting is december 16 to discuss the timing. yields on to your treasuries jumped on the news and the hawkish tone caught some investors off guard.

anna: the chinese premier says his country needs growth of 6.53%. -- manus: is ready to japan's industrial production expected to increase in september, raising the bar foreign expansion of stimulus in tomorrow's policy meeting. of ading expectations decline of 0.6%. -- anna: a busy day from european aviation. lufthansa is due to report shortly. t way very much for coming in -- thank you very much for coming in. air france, striking workers, etc., etc..

these numbers are highest in a decade. >> incredible numbers and we are likely to see this across the board. one of the things you have to keep in mind with air france is that last years comparison, they had strikes last year. 500 million euros. numbers acrossng the board. the other thing to point out, they did make the point, they still have to make significant cost cuts. manus: which brings me to the big subject. cfo, it iswe get the the decline of the carriers. if they are doing well and seeing an improvement, and my incorrect to make the assumption there is some kind of a shift in terms of numbers from the local

carriers? the situation -- this is a strong summer. if you did not make money this summer, you should not be in the business. stillw-cost carriers are moving forward and you will see this very much. they have germany and their targets. lufthansa ishing going to be aware of. at air france, you saw what it was like a few weeks ago, clothing getting torn out. those negotiations are not to be made easier. anna: thank you very much. dividendfending the amid dark earnings season for

the world's crude producers, all spending is getting trend -- trimmed. anna: the dividend is being spared despite the collapse of gold prices. the company has paid out more than $175 billion to shareholders. bp,s: within chevron and they are all following the same track. we are waiting for the figures. early this week, we had bp. they cut their investment plans. hear fromrrow we will further businesses in the sector. will kennedy can understand us -- help us understand what is going on. the dividend is almost sacred. >> next year, everyone ends

putting in place the structure to pay dividends for 2016. yesterday, we mentioned the $60 area. when you look at the exxon numbers last night, what are the big things you are walking away with? >> cost-cutting. projects.elaying to take cost of the business in a world where oil is below $50 a barrel. anna: some businesses are keeping up with business, even though they are canceling projects. another thing i would point out,

these are the two biggest refiners in europe. you will see very strong numbers from their refining businesses. this is the quarter that shows the strength of this model. fair, in this downturn, you see the strength of the model. we will year something in the form of business. business?ss -- pharma oil business? saw -- anna: thank you very much. up next, germany becomes china.est country to

china.woo everybody is doing it. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

manus: it has just gone 6:30 a.m. in london. these are the stories that you need to know. anna: federal reserve officials have hinted that december might be the first interest-rate hike since 2006. the fomc drop the reference to global risk and referred to its next meeting as it discussed left off timing. yields on two-year treasuries jumped on the news. manus: pfizer has approached a botox maker about merging in a deal that could bring the two together.

at an early stage and may not lead to an agreement. anna: air france third-quarter profit tripled to its highest level in a decade. by strong summer sales. you can see our interview with the air france cfo a little bit later. profits inbest a decade. they had a strong summer. they are raising their full-year target for the year.

that target was at 1.5. beat, 24.3vely billion. that is up from 22.6. thegroup results, 1.75 whole nine months. germanwings breaking even. they had a cracking summer. fuel helped them along the way. the strategic realignment helping them. anna:: things to wrap up. cutting talking about the forecast for diabetes sales. elsewhere, they have lowered their 2015 revenue outlook as china and the u.s. technology slows.

we have had two companies warning about what they are seeing in china this morning. >> i am looking first at third chordae core -- third quarter core. the estimate was 1.44. if we have a look at its dull-year forecast, thir year coming in as a beat as well. it recently spun off its plastics unit in an ipo. this company trying to focus more on health care and crop science. we have seen these earnings coming in as a beat.

reports in the wall street journal that pfizer is considering a merger. this comes after its prospective deal earlier this year with astrazeneca fell through in the end. anse talks, they are at early stage. this has been a very busy year for the pharmaceuticals industry. .200 billion in transactions pfizer is not commenting at the moment. look fornother move to those tax inversions. we have an exclusive interview. that will be live at 8:30 a.m. london time. manus: let's get to our colleagues in asia. take us through. we have had the indication from the chinese, 6.53% growth to

keep the pot bubbling. yvonne: the chinese premier specific on his math, 6.53%. the minimum growth, he hopes to maintain his moderate growth. the asia region, kind of that next picture. the china stock is investing -- the shanghai, less than five months after we saw this equity of bubbles burst. it seems like investors have some short-term memory. surprise iniggest global markets. ordinary investors also joining back into the game again. a big chunk of the buying. i want to end on some movers. today.shares a big focus

they were talking about the biggest natural gas and oil producer. spending cuts on target. production rose 24%. petro china, those earnings coming out after the markets close in just a couple of minutes. -- insurers anna: thank you very much. manus: we had xi jinping's visit to the united states. and then we had his trip to britain. now it is germany's time. angela merkel is beginning a -- two day trip. anna: our reporter is traveling

the chancellor. talk is to the deals that have been announced so far. the dealsus through that have been announced so far. deal is 17 billion u.s. dollars. 130 aircraft, altogether. according to an airbus official, one of the biggest deals so far between airbus and china. course, the vw ceo is traveling with merkel and the entourage. is this about damage limitation or is it merkel showing

solidarity with whatever biggest opponents and exporters. >> good question. think the new vw ceo gets to know merkel, actually. secondly, it is kind of trust building. he will make clear to the chinese the german authorities and vw will wrap up this whole case. said, -- i am not really involved in this, but she .s drumming the drum

cars in -- 9000 vw china. anna: thank you for putting that in perspective for us, joining us from beijing. manus: it is a lot tougher for the bond traders. let's bring in our guest. it is pimco's managing director. andrew, very good day to you. they just put december back on the table. a roll of the dice, 50-50. what did you make of the fomc statement? andrew: finally, they will get this over and done with.

domesticgth and the economy, there is enough for them to do that. this is the most talked about hike. we have been talking about it since may of 2013. the strength is there for them to do it. they removed the concerns they had about the international weakness. that is gone. they are focusing on the domestic economy. --a: we had an introducing interesting conversation with danny blanchflower. there was only one dissenter this time around. do you think it will be a unified fed in december? andrew: that is what yellen wants. to the extent there is this --ty, the other option

everybody is going in the right direction, even those members who expressed concern previously. they were obviously on board for yesterday's decision. so long the data and the lead up to the december meeting support, they will be on board, too. manus: you do your trade in bonds, i have heard. stephen said there is no inflation. a myriad of other issues. the consensus is that the two-year government bonds will be slightly higher by the end of the year. how do you look at the bond market? we have seen a little bit of a move last night. how you look at the market? >> through the eyes of inflation. when you take a medium-term outlook on inflation, it is hard

to find it. surprised by the muted reaction in the bond market yesterday. is the door isng hike, verye fed to passively. they decided to leave the door open yesterday. what is happening is the business cycle is alive and it is reasonably mature. we are talking about a hike coming into the business cycle when we are already over the halfway mark. inflation is nonexistent. it might be slowing the business cycle down. manus: they do not price in

another hike. the market is not pricing it in until the second half of 2016. are we setting up for a big policy misstep? andrew: that is what my colleague describes. hike we haveish seen. the broad international context. while the u.s. domestic market is strong, the rest of the world is not looking that great. if we take the imf database of all the countries in the world and we divide them up into three categories. we have roughly two thirds of gdp. those countries are in easing

mode. it backs the question how far the fed can go on those hikes. anna: stay with us. next, a deal that could bring two of the world's biggest drugmakers together. more in the reports of a possible meeting. ♪

anna: you are watching "countdown." officials have hinted december will be the first time the first interest rate hike since 2008 will be in play. the fomc dropped a hint to its next meeting -- dropped global risk. tone caught some

investors off guard. anna: let's talk about the airline sector. air france reporting numbers, lufthansa reporting numbers. air france ceo will give the first interview of the day around 11 a.m. u.k. time. manus: bayer profit beats estimates in the third quarter. germany's biggest company by market value. that surpassed the estimate of 2.26. anna: we will have an exclusive

interview with the co of -- the ceo of bayer. manus: we are getting a little bit of news, the energy sector has been primed for news. >> i am looking at italy's biggest oil producer. we are looking at a third quarter adjusted net loss of 257 million euros, third quarter adjusted operating profit. the operating profit excluding the oil services contractor. we heard that news yesterday, selling a 12.5% stake to reduce a debt burden.

the other oil majors saying they will protect their dividends at all costs. in terms of what else they've said about the oil market, weak fundamentals continuing, significantly lower crude prices as well. refining, adjusted profit came in at 335 million euros. these earnings are not something to celebrate. the refining side is the positive lower crude prices. overall, adjusted third-quarter net loss of 257 million euros for italy's biggest oil producer. anna: pfizer has approached a botox maker about merging. let's get more with the director of research of bloomberg

intelligence. great to see you this morning. various reports that this could take place. what do you make of it? >> pfizer has been in the news quite a lot. they tried to do the astrazeneca deal. they asked a lot of questions in their earnings call. interest is still there. if they are going to do something, they have to do something before the next legislation sets in. manus: it is based in dublin with a tax rate of 4.5% pfizer plays a little bit more -- pays a little bit more back at home. 20% that it the used to be. we need to take a good look at this and figure out where the overlap is.

this could be very early and nobody responded. we have to think about the logic. apart from the inversion, if you look at the match between the businesses, there is a lot of overlap. drugs.of biologic pfizer got a load of those through the deal they did. you have to think about whether this has logic from anything allergan. anna: the political reaction, is that going to be in forming the knees conversations? -- informing them in these conversations? they are not major players.

just didnteresting, we the heat of discussion about some pharma companies price gouging and all that kind of thing. i do not know whether the market is ready or the politicians are ready for a blockbuster deal that takes loads of cash out of the treasuries coffers. -- treasury's coffers. the company has to do what it believes is right for the shareholders. anna: thank you very much. manus: as ecb executives haggle over whether to add more monetary stimulus to the euro zone economy, the forecast for inflation -- are they realistic? let's bring our pimco guest back into the conversation. and spain.s germany

spain has had negative numbers for eight months in a row. it is such a hard one for mario draghi to deal with. andrew: that is the source spot. the growth data looks ok. manufacturing 54, is expanding, credit is growing again. the inflation numbers are the problem. that drove the last decision. manus: will that drive the scale of the response? we're on the cusp again. is the level of negativity going to drive the response at christmas? zero they want to get from up to 1.7% for 2017, for a slow moving number, that is a long

journey. expectations -- new qee're going to see from the ecb. what will it look like? andrew: it will be a combination of increasing monthly quantities and probably extending the time. they are targeting a certain quantity and the quantity equals how much per month times how many months. manus: we looked at to your government bonds, germany, -- we looked at two-year government bonds all across europe. allany, netherlands, negative. they need to cut this deposit

rate. what do you make of that, is it stretching a bit too far? andrew: their negative interest rate policy is a little controversial. it has to do with the timing. on the one hand, they force the banks to hold reserves. the banks cannot get rid of those reserves. only the ecb can get rid of those excess reserves. they are trying to increase the velocity. it is like a hot potato. it around. increasing the velocity of liquidity. anna: andrew, thank you very much. manus: it has been a busy day for earnings so far.

-- of the hour, anna: the banking sector and energy sectors both in focus this morning. stay with us on "countdown." ♪

the fed tidbits. the fm oc holds steady on rates. warnings to global risks on the u.s. economy. anna: lowering expectations. he for the idea of a minimum 6.5% growth for the country. strong summer sales. lower fuel prices. how airfrance's third-quarter profits has seen the highest level in at least three decades. the company locked off in a -- locked in a standoff with unions. -- >> itt was a shock

was a shock. not good news for airfrance. not good news for france. [indiscernible] ♪ welcome to countdown. i am anna edwards. manus: i am manus cranny. let's get to mira. she's got breaking news. let's startejra: with shell. the biggest third-quarter adjusted profit coming in at 1.8 billion dollars. the estimate was $2.9 billion. a miss there. third-quarter adjusted profit here coming in at $1.77 billion exactly. estimate $2.92 billion. and is just a shell. they have been cutting jobs,

saying it would cut back on investment as well. the ceo saying he will pull out all of the stops to protect the dividend. it also has been abandoning oil exploration and mainly in the arctic. oil sciencealberta project. moving on to toe towel. third-quarter adjusted net coming in at $2.7 billion estimates $2.46 billion. here, we are looking at a feet. it is also expected to cover a cash dividend at $60. there we go. third-quarter dividend coming we go. .61 euros a share. that is in line with estimates. the oil signal of majors maintaining their dividends. estimateslso beat with profits last quarter as well. back.has been cutting

it has been cutting back its refining business. when i talked about the refining side of the business is what is helping some of these companies. while oil prices might be bad for some parts of the business, it helps those margins. overall, show third-quarter adjustment profit coming in at a miss. total coming in at a beat. back to you. manus: let's bring you some of the breaking news from deutsche bank. deutsche bank has offered of level 5%. that is the first red headline. cryan. tenure of john we are waiting for a strategy update. revenue comes in at $7.33 billion. that is the low estimate it low losses are rising. -- think hekeep it take away. that trading. when you break into the numbers

of deutsche bank. are -- we know he is talking about job cuts. asset disposal, scrapping the dividend for the next two years. at the greatest portion of the to make is on the trading side of the business. that beat the analyst estimates. when you look around the rest of the business, the four largest u.s. banks dropped in that part of the business of $32 billion. we also have bp. anna, you're going to give us the numbers. anna: bp second quarter update. sales broadly in line. second quarter record -- second quarter revenue -- that is a touch ahead of the estimate. that is for the revenue number. number -- the competition market authority

granted at all clear for the ed .hat's the ee deal trying to offer full product to decay customers. getill be interested to comment from the management on how much they are willing to spend. it is all about content on the sports. how that is translating and getting them more broadband customers. that will be interesting. we'll have an update from bp in a little while. we will be speaking to the ceo. manus: we got a little bit more from barclays. third-quarter net profit comes in at 470 million pounds. test 417 million pounds. -- 417 million pounds. those are the headline numbers. it is too early to make comment on the fourth quarter for the investment bank results.

this is what we're hearing from barclays of course. a just appointed jes staley. -- they just appointed jes staley. issues around africa with its evaluation -- the dropping value of the rand. in terms of the first quarter, too early to make comments from the investment bank. -- 317he investment bank -- 317 million pounds. anna: lloyds reported earlier this week. manus: and rbs. " let's stick with the banking thing. let's take a step back and get back to andrew wasn't worth. -- andrew bosomworth. we have seen a trend of banks stepping toward a capital

intensive activities. this is something that worries you the way this market functions? andrew: we are going back to the future. ago, bid back 20 years offer, the cost of transitioning was a lot wider than it is today. that is the end result of the regulation that is taking place now. , the pullout of some areas bid offer, the cost of transacting is going to rise. , will this increase -- will this lead to increased volatility? this is a moot point. it is quite clear the cost of transacting will go up. that is a good thing. it does cost more volatility and you are right.

andreas: are fewer market -- andreas: -- andrew: there are fewer market makers. does that automatically mean increased volatility? not necessarily. manus: to make the market better . the reality is of course. i want to put the graphic because this goes back to if the fed tightens that chris was time, what we are seeing is peak moments of volatility in the market. thanks take risks when they go to the quarterly reviews from their regulators. these are the peak moments over the year when you're seeing the end of each quarter. you see it spike higher in terms of volatility. that is because for concern in terms of the fed doing anything at christmas time. they don't care about market, do they? andrew: they care a lot. will be very clear about

communication. it will be dropping hints in advance. i think they are going to be a lot of people on wall street who will be postponing their christmas holiday. anna: or lisa celebrate a little bit later. marketsnterest rates antoring in a 40% chance of increase in december. that was compared to 33% previously. we have seen in the last 24 hours a big shift in excitations. you think there will be more signaling between now and december from the fed that they are going to go higher. they don't want to take the market by surprise. andrew: certainly people on -- yesterday, they are scheduled speeches between now and december. more signaling to come through. manus: andrew, thank you very much. andrew bosomworth, our guest host. anna: looking -- a joining us

now, gavin patterson. thank you for coming in. the numbers in line or a touch above estimates. us what you make of the good news you had earlier. when -- whatgavin, is the scale on that? give us an update. gavin: good morning. the cma yesterday provisionally provoked the acquisition of the ee. good for the u.k. as a whole. in terms of the timeframe, another consultation. that's another consultation period that could take until the end of january. then it will take a final decision. manus: a very good day to you here it is manus here. is wrecking their brain. you go head-to-head on these

sports bids. you've got the champions league. are you prepared to spend the same kind of money again and again, pushing the cost of these sports programs ever higher? the you regret any of the bids? are you prepared to put steam in the market? our investors are working for our business. it is not a zero-sum game between us and sky are. the opportunity exists to increase the size of the market. to make it available to more customers. our approach is very disciplined. we are clear what sport at the value to our proposition. what brings new audiences in? what brings new customers in. anna: are you measuring the success around the number of

retail broadband customers you are adding? what kind of a step change in your retail broadband business? more thanwas always broadband. we said look at our top line revenue, look at the profits of the company, particularly our consumer business. we were asking to look at those of time.riod are they both growing back at you can see that. going 7% year on year. -- growing 7%, year on year. have goneinvestments in. over time, i am confident we will continue to grow. it is not just about broadband. it is about tv. we had a record quarter in terms of tv. one had to 6000 in terms of the quarter. we are very proud about that. manus: let's talk about the isry that is pervasive which talk talk has been hacked.

they have had huge issues around ourdata, our bank data, personal data. you are my provider. gavin: thank you very much. manus: you are very welcome. what percentage of revenue are you spending on protecting my data? will you spend more money in 2016 protecting my bank data? gavin: we take security very seriously. it is core to our business, not just consumers like you, but also in the business market where we provide security for a number of the big banks. and the big multinationals. it is something we take very seriously. it is a continual fight. it is a dynamic picture. our investment is going up year on year. yes. you reviewing your security procedures around this? ?ow your data is encrypted

have you reviewed your business? gavin: it every time there is an incident like this, we use it as an opportunity to learn. nobody sits around and thanks and gloats -- sits around and gloats in any way. it is a way to reassure ourselves we are doing everything to protect the key data of our customers. thes: gavin, you answered sports question. very well done. you can relax now. i want to know how competitive you're going to get in terms of giving me other content? i've got netflix, amazon prime. i'm a multi-spender. what are you going to do in terms of non-sports content? have done some small deals. you are no where near the game really of netflix.

what are the next big strategies in terms of content, beyond sports? gavin: in the general entertainment markets, we got 182 channels which is pretty good. we lost amc in the u.k. recently, exclusively. it has the number of top shows, walking dead for example. is another top-rated show. we're looking to broaden that. it is an area that we need to invest in. line manus: -- are you going to start a bidding war? gavin: we will continue to be disciplined. we know where the value lies. we want to think that the offer, but we will not get ahead of ourselves. anna: can ask you about the issue of grexit? it is something that bp has spoken out about, the importance

of being able to access labor markets. are you going to put in place contingency plans? aboutxed signals gives the future role of the u.k. in europe. our you putting in place contingency plans? -- are you putting in place contingency plans? gavin: we continue to believe the u.k. is better within europe. a reformed europe, but undoubtedly we feel we should be a part of the european union. in terms of planning, as with every risk across the business, we look at it on a continuous basis. it does feature in our risk register. we will compare contingency plans on that basis. anna: heaven, thank you so much for joining us. morning, -- ais net income of 6.7 million krone -- krona.

he joins us from copenhagen. this is a bit of a disappointing set of numbers for the market. your world is dominated by negative interest rates and a roaring property market. how much harder is 2016 going to danske.don scott -- for >> q3 was a little bit weaker than anticipated. we were well-equipped for the first nine months. oure will ahead of expectations -- we are well ahead of our expectations. we are dealing with that in a proper way. q3 was a little bit weaker, but we are well ahead by 2015 estimates. an example, we have kept our guidance of more than 60 billion for the year.

anna: how do you deal with those negative interest rates? what changes in your strategy that you had to put in place? the want to see an end to those negative rates? >> we would like to see an end. account ittake into will last until 2016. on the other hand, the negative rates are good for many household economists and the other side of the coin, some say we can experience very low impairments. we can also see that house prices are moving up in denmark. in that way, it is a positive for the bank. -- ouri am fascinated supervisorsaid the warning you to change strategy. were you surprised that your regulator gave you guidance on

your business strategy? >> know, we are having a good we are having a good dialogue. plan none will we have a to expand in sweden, they say for example be aware that property prices may be high insert in areas where it is financial that they give this kind of guidance. we have no problems with that at all. anna: are you concerned about the property market in sweden? do you see it as overheating? are you concerned about the debt burden that customers in sweden are facing? >> we are taking that into account, trying to grow our basis. confident,e are given we have a small market share in sweden. we can grow our portfolio in a prudent way to manus: the huge

so much for joining us. bank, chief financial officer. anna: the government says the 7% rate may not be required to achieve its goal. more details on that story. we will be right back. ♪

anna: welcome back. is 7:23 in london. here are the stories you need to know. manus: let's kick it off with deutsche bank. details, trading income rose in the third quarter as co-chief executive -- the largest three-month loss. revenue from trading in debt and currencies rose 22%. germany's biggest bank posted a loss of 6 billion euros.

reduce the value of its investment bank. the bank reserve funds for legal costs. -- adjusted net income billion..7 6 the french energy giant says growing profits helped it whether a slump in crude prices. manus: -- profit adjusted for one-time items. missed the average analyst estimate of $2.92 billion. commonest -- china's top, and his party officials -- the nation's mere games a few clues. of 6.5%l growth figure necessary to establish a moderately prospered society.

it comes as the commons party concludes its four-day gathering to discuss its five-year plan today. david is in hong kong for us. david, good to see you. what is the significance. minimum growth requirements you to give us contact around this kind of number which is very specific. david: it is a very specific number. 6.53. they must've been doing some heavy calculations to come at best to come up with exactly what they needed. the aim that china wants to get to, and that is to achieve by 2020 a moderately prosperous society. it's got a definition of what that means. that means doubling her capital income from 2010 to 2020. the 6.5 number has been shifting around economists, analysts have been expecting that is indeed what china would need to in order to achieve that per capita income gold.

what we have now is china coming out and saying it in a formal environment, 6153% is what we want to have -- 6153% is what we want to have. that's 6.53% is what we want to have. floor on what china as a minimum in order to achieve those targets. we could get a new growth target for next spring when the plan is published. " david, thank you. it seems we are having to go through a macro recess. big china recessing in china. in the united states as well. manus: that comes down to how you view -- what is going to

happen next? we can tell you what is going to happen next on countdown. anna: 7:27-ish. manus: it is all about drugs. prospect of a deal. ♪

anna: welcome back. here on the stories you need to know. manus: federal reserve officials have hinted that december may be the time for the first interest rate increase since 2 -- since 2006. the community last night dropped a reference to global risk and referred to the next meeting on december 15 and 16 as discussed for timing for a lift off. tone caughtwkish some investors offguard. in the next five years. to meet the government's goal of

establishing a "moderately prosperous society." manus: barclays third-quarter profits fell to present as the costs -- restructuring fell to 1.4 billion pounds. that missed analyst estimates which were an average of 1.6 5 billion pounds. anna: pfizer has approached allergan about merging. from sam.more on this good to see you again. run us through the logic as it has so far been revealed that suggest a deal could be in the making. it seems to be about tax once again. sam: if it is real. this is a rumor. what.ows what said

the industrial logic, the operating logic is -- you can always make logic for a rumored deal. there is overlap for some of the pipeline stuff they have. things admit that thinks they are working on. -- things they are working on. what might work is the rest of the business they buy. the generics have been offloaded by allergan. them intoy putting the operating units. pfizer operates through three operating units. one of them is called global established products. make that more amenable to a spinoff. manus: the politics. ireland.based in allergan is based in ireland. they have a much lower tax rate their.

4.5%. pfizer, a u.s. company, taking over what is perceived to be a u.s. company. isn't that a little more palatable? astrazeneca was definitely not a sam: ashesy -- uncovered was definitely not a u.s. company. it is anglo swedish -- astrazeneca was definitely not a u.s. company. it was anglo swedish. rage ahis was all the year or two ago. administrationa changed the rules. sam: they have not changed yet. their expectations are we need to have new levels of ownership that of the u.s. and on to classify as an aversion.

registration is coming. manus: pfizer overplaying for glaxo may be worth it, versus alec ryan -- versus allergan. we thought pfizer would go after glaxo. sam: the version would not be as .ttractive with glaxo there is a lot more logic to glaxo versus allergan. anna: sam, think you very much. manus: time for a market check. what have we got on the futurist? -- on the futures? what is driving? co. -- nejra: we're looking at deutsche bank first.

john cryan, new co-ceo, his clean up of the bank stock has led to the largest remote loss in at least a decade. what we saw was a loss of 6 billion euros. reducing the value of the investment bank. the company reserving funds for legal costs. we did expect this. deutsche bank did one earlier this year this might happen. it also said that it plans to suspend dividends up to two years and resume a payout from fiscal 2017. and of course john cryan is going to present a bank strategy in london today as well. when on to barclays. third-quarter profits fell 10%. that was a miss. it included restructuring costs could we heard yesterday that jes staley will be taking over as ceo. the axis -- the exit jpmorgan

banker. many questions on what is good to happen with the investment bank. if there could be scaling back. to 317rofit climbed million pounds. bank, this is scandinavia's second-biggest bank. that prophet came in as the bank cut costs. back to you. cehic giving a rundown. i don't know if it's costs, i believe there is a bigger super thursday. thank you very much. " we got lots of earnings out. factoring in what -- anna: we've got lots of earnings out. factoring in what that means. european stocks seen up a little bit. not a bad performance

considering the about-face that many in the market had to do around the fed and that december call. look as if the fed still considers december to be a live meeting. -- you would think investors would feel nervous about that. manus: the ftse 100 index down. most likely to do with the oil majors. we had royal dutch shell, they have reported. total shell. all out this morning. we brought the chief correspondent, javier class. .avier glass this shall number in the first the law's $7.9 billion for tickets behind the numbers. this is the biggest net loss and a decade could give us the rundown. how."

javier: the other one is shell cleaning up the house today with a big write-down, eight in dollars. half of that we were expecting because it was related to the arctic and this project in canada that they canceled. ise or less 40% of that related to the fact that shell has today lowered its forecast for future oil and gas prices. that reflects the big loss. anna: what are they factoring in ? we talked about how all of these oil majors were hatching to -- were having to adjust to prolonged stagnation. javier: they have not disclosed what their factoring in. bp was at the beginning of the year. shell is believing that prices are good to stay lower for longer. they are preparing the company

for about $60 a barrel. the big question is, they did a huge m&a acquisition earlier this year with a different price forecast. isn't that working? that is going to be the big question. manus: it has been a pretty fair let year. virulent been a pretty year. these write-downs are coming down hard. $8 billion. d here people run a mile from them? -- do you hear people run a mile from them? is notnow the producer opec, it is not russia, it is u.s. sale. the problem i have with u.s. is the processe of making them go bankrupt is not working. the shift that we have seen brings down that break even for shale oil from 50 to $55 in

texas. i think it is going to go down to $45 which is where we are now. the fourth curve on brent is wrong. people are expecting that rises and oil prices are not going to get it anytime soon. manus: opec could pull one out of the bag. >> when they are less than 40% of global supply, we don't really care anymore. they are not the marshall producer. the problem is is if u.s. shale oil producers instead of going bankrupt and continue to produce, there production will be a lot slower. javier: i will not completely discount opec. decided to change the strategy right now and they there wouldduction,

be a rally. anna: in the midst of these weak oil prices, we have been talking 60 months about the weak oil prices. how do oil businesses positioned themselves? do you do what total is doing? that strategies is the working better for them. have your: the companies that -- hobby: the companies that have focused on refining have benefited from that. the production of oil and gas, then you're going to reach the limit. one bullet point that shocked me , the return on capital employed by shell on the last quarter was 1%. you could not have made more putting on u.k. deals --

show was getting 1%. manus: you would've gotten a dividend. this is where i take exception on the old thing that's exception on the whole thing. -- exception on the whole thing. people chase dividends in the equity market. -- companiesen you costs.ucing capital and they are firing people left and right. when shell updates the market on long-term strategy on tuesday next week, we are good to see more cost-cutting. medical let's check in on the let's check in:

on the screen. we got dividend pays. we got bp on 6.86%. you got shell on 5.74%. look at that! anna: you can't take credit for that. [laughter] i've never anyone say that is my home country. anna: edward, do you go after these dividends? good there are plenty of dividend yields available elsewhere in the european market. that is what i look for, a commendation of yields but also dividend growth. these guys definitely do not have. manus: hold that thought. javier glass, great to have you with us. the chief energy correspondent here at bloomberg news. edmund edmunds is going to be with us.

he likes rap songs, did you know? anna: yard talking -- we are talking deutsche bank. we look at the numbers. ♪

manus: manus: -- 7:47 in london. here are the stories you need to know. officialsral reserve -- and a statement following their latest meeting. referencee dropped a interms of its next meeting december. the signing -- the signaling of the fed'srate hike -- hawkish tone caught investors offguard. decline.ells 70% profits adjusted. inventory charges dropped. that lifted -- that left the

analyst estimates to 2.2 billion dollars. drop in oil prices. europe's second-largest airline says these factors contributed to a 51% surge. the company says earnings will 1.9 billione of -- euros. you can see lufthansa ceo first into the of the day right here on bloomberg tv around 11:00 u.k. time. minutes ago, after the start of the european trading day, we got london indicating the rest of europe should trade higher. stocks to watch. thea: i've been watching stocks this morning. i would start with shell. decline in a 70% third-quarter profits. missing estimates.

this of course after crude prices have been slumping. brent crude down 40% in the past year. total, the oil company in europe, now it's third-quarter profit beat analyst forecasts. this is because of its refining operations. the lower price of crude beneficial for refining margins, even though that income fell. it beat those forecasts. doingmpanies have been across the world, cutting back on investment, cutting back on spending. even production, jobs. basically running back on anything but the dividends. they have been costly protecting that for their shareholders. italy's biggest oil producer has been the first to cut its dividend. it reported a net loss in the third quarter. this being hit by slumping crude prices.

total, and, back to you. banks.let's get into the germany's largest lender, does the bank saying that trading revenue rose 77% in the third quarter as the co-ceo john cryan works to clean up the post. in the u.k. -- that missed estimates. paribas, let's bring into the conversation which it putting. -- richard paddington. expectation around the investment bank, there is a flux here. change in management. what did they deliver? richard: they are slightly flatter than a year ago in the same quarter. they had a pretty terrible time. the equities business a year ago suffered from the allegations

made in new york by the attorney general. they were duping clients there, calling them into using the dark pool. they are refuting those claims. however, they don't appear to have been hit too bad. macro in credit is up. year, the investment banking advisory side of things, the m&a is up. and go looking ahead on the investment banking side, is their caution about where october has been? october has them a good. they have indicated that was not a good move for them so far. the new ceo wants to take a close look at what he needs to do in that area of the business to improve returns. manus: it is strange you mentioned the new ceo. we go behind the ticker on bloomberg, and you're able to track how an individual on the board performed relative to

their peers. what we've got is john mcfarland , he exceeded to power. july, he has been there less than three months. performance, his stock down 20%. his peers down 29%. it has not been a great time for the whole industry in this quarter. we had a tough quarter, didn't we? which: it is been pretty poor for equities as a whole. richard: it has been pretty poor for equities as a whole. that is something that has weighed on all banks. the new chief executive being announced over the past day, the shares have not rallied and barclays. not a ringing endorsement. investors will be looking for how they are executing on the strategy. if the chairman and now ceo wants to alter that at all.

they said before the end of the year they will update the market about their plans. they are talking with a regulator about what they need to do. the chairman has said he doesn't want to shift too far from the strategy. he wants to still cook that investment bank. anna: which in a number of banks reevaluating their strategies. they have done it at different times. they have chosen different paths. evaluation? -- quest theyg had ambitions to be a global bank. it is over. they need to scale back. they need to pick and choose their battles, just like deutsche bank. they need to pick and choose where they can be relevant and where they can make money. areas like fixed income where it is going to get tougher and tougher. problem for all

investment banks. deutsche bank has exactly the same problem. all you can do is show up with an ax and swing hard. manus: you have to love the irony. when you look in the net numbers over deutsche bank, it was the trading investment that did well. let's get over to jon ferro. he is up at 8:00 a.m. with on the move. what is in store it? djokovic manus cranny, you and i will have become session about john cryan. -- jonathan: manus cranny, you and i will have become -- will have a conversation about john cryan. a lot to discuss. beyond that, front and center, it is a hawkish hold from the federal reserve. the fmo see holding steady on rates dropping warnings about local risks. what has changed? we will have a discussion about that. the december meeting is now live. anna: thank you very much. --ot of people reinvest desk

we saw the reaction in the dollar. we saw the reaction in the markets generally where people are reevaluating. we now have a 40% rate increase -- manus:ederal rate jon and i are going to have a conversation about deutsche bank. the 8 blas talking about .illion lifeline anna: some of that was expected. that will do it for countdown. i was you again tomorrow. goodbye. ♪

jonathan: good morning and welcome to "on the move." i'm jonathan ferro at bloomberg's european headquarters here in the city of london. moments away from the start of european trading. hulkish hold. dropping warnings about global risk to the u.s. economy. december is a live meeting. a 6.5% annual growth rate for china. chinese leaders conclude that t their gathering. ahead of the open then, 20

seconds away. so many earnings. so many corporate numbers. dax futures up 34 points. let's get straight to it and get your european market open. >> thanks, jon. we are seeing stocks heading for that monthly gain rebounding from that quarterly route. in fact yesterday we saw the stocks snap a two-day losing streak. it was oil and gas companies leading those gains. yes, we had that policy decision from the fed. of course no rate hike. nobody was really expecting that but what dedid get was a possibly of -- we did get was the possibility of a rate hike. they have not committed to move this year. we have seen the possibility of a rate hike in december at 46% and greater than even odds are priced in for january rather than marv. let's take a look at how european stocks are reacting to th