♪ >> this was the year that a threat of economic slowdown in china left the world dazed and confused. in 2015, europe almost broke apart. greece went to the brink of economic oblivion, the ongoing tension in ukraine, all, over the next hour we review the stories we have covered here on bloomberg television. ♪ >> january 15, 2015, that is the day that swiss investors will never forget.

that is the day that the bank unexpectedly put the franc against the euro at 1.20, the euro slumped to a low of 85, that is a drop of 29% before closing down. 19%, the biggest drop ever, the lowest close ever. it prompted a selloff in companies. the policy shift was unexpected and it would hurt exports. this is not the only central bank that caused a massive ripple across markets. we will look at china, and the yuan devaluation, the biggest one-day drop since the january 1990 five.

it also prompted a widespread selloff and emerging-market assets. this is the emerging market index, and the two weeks that followed the yuan devaluation, a weak demand from china and the start of regional currency wars. we will finish with the biggest corporate scandal of 2015, volkswagen. on september 18, they admitted to cheating on u.s. diesel emissions tests, on monday, september 21, shares plummeted by 19%. this was through october 2, losing value. with the lawsuits pending, investors are still awaiting the final cost for the german automaker. ♪ francine: 2015 was a year of market uncertainty, concerns

about an economic slowdown in china coupled with commodity prices make markets nervous. the fall in oil prices still causing shockwaves and every word uttered by central bankers was looked at under a microscope for the merest hint that an era of easy money was coming to a close. and the discussion focused on growth. it was a constant theme throughout the year. >> if europe is going to grow, business needs to grow. i will make a quick point, if you look at the united states and what got it going, we had cheap energy, we had low interest rates and a competitive currency. we used it to create jobs, so the question is, can europe create jobs? you need structural reform and order to do that. look what we did in silicon valley, how many jobs will be

created in the u.s. in the next 5-10 years? christine lagarde: they all need to pull their weight. this is a critical year, big trade deals are on the table. there is a big climate deal coming up. also a lot of opportunities, development objectives, there is a three key agenda item and in the world of central bankers and business, all of them have to really rally around those jobs and growth objectives in the context of big deals. >> all of the above, central bank is doing its part and doing as much as politics will allow. business leaders are primed and ready to go. the question is whether there will be a political leadership to put a dynamic framework that has both demand and supply elements in place for adequate growth. ana botin: banks are prepared and ready, we are at the central part of the equation. we are the transmitters of monetary policy.

to the real economy, businesses and people, they want to buy a home, get a mortgage, i think that we need a balanced approach to regulation that brings in policy issues that we discussed today. francine: in two or three months, if you see the situation, it is getting worse, is that when you start to think of creative stimulus, and how creative do you need to be? >> it is possible for this equation, it is effective, particularly in situations -- of course, we can make that adjustment to our monetary policy, meaning an additional money. there are many ways to do so. francine: many ways? >> yes. francine: say you think you'll have to get more creative? >> yes. ♪

>> given our forecast, the decision about whether or not to begin the process of raising interest rates at the turn of the year, so you're not yet -- the year is not yet turned, as you can appreciate. it is coming closer and progress has been in recent months, it has not been, it has been mixed. growth has ticked down and is on trend, domestic cost growth has come up with expectation. some cost has been softer. the picture is mixed, boeing still have a situation where domestic demand in the economy is resilient and part of that is robust, it is progressing. >> if you try to communicate to people about the idea of all these things and yet, we are flirting with the idea of interest rates, do you think there is no alternative looking back, any regrets? >> no, look.

forward guidance initially was very much about the early stages of recovery and what is the minimum conditions required before we even begin to think about raising interest rates. if you look at the historical reaction from the bank of england coming given the strength of the initial recovery, 2013 into 2014, the strength of purchasing managers and growth, historically the bank of england would have raised rates three times in that time. as you can tell, that revealed, that would not have been the right thing. it was partly binding the hands of the community to say, let's look at the reaction, let's see what the underlying inflation does. i think it actually gave people cause it to invest. subsequent to that, we have given guidance on the path of interest rates. limited and gradual. we have repeated so many times, it is so boring, it is just part of the furniture now.

but that is a good thing, that is the call we made in december 2013, the -- so two years ago we made that call, now it is accepted and it has been consistent. ♪

♪ ♪ >> the greek saga transfixed the markets in 2015, with a new prime minister in athens, imposed by the european commission. he took his country to the very brink of an exit from the european currency. there were many late nights. this became an existential crisis for the euro. they looked like they would run out of cash, the closure of banks increased the misery of ordinary people who had already endured years of economic pain. >> in another era, before the crisis, earnings in central athens was one of the top 10 most expensive retail locations,

not just in europe, but the entire world. now eight years later, it is number 29 and that is behind places like copenhagen and dublin. to tell me more, we look at the situation. nicky: retail sales volume fell by about 30% in 2010, 2007, athens was the eighth most expensive street in the world. >> can you quantify the drop in rent and prices? nicky: rent dropped from 300 euros in 2010 to 160. >> so about half? >> yes.

>> do you get a sense on the greek situation is resolved, greece will get back to where it was before? nicky: i do not think we will go back to where we were before. it is linked with economy, if things improve, i think that we will do better. >> if there is a silver lining, it is that for prospective landlords, people looking to buy, they will get back on their investment and they can get up to 7% back i guess annually on your money, which is a fair amount more than a bank, if of course, you can get your money out. >> in july, the world was stunned by news of a referendum. greeks would get a chance to

vote on it. during a live interview with me, the country's controversial finance minister announced his intention to quit if the vote went against him. >> what are the greek people voting on? they think at the moment, there is no offer on the table, i am curious on what you think. >> that's ingenious isn't it? on the 25th of june i was presented with a comprehensive proposal. it was more or less on a take it or leave it basis. for us, just reading it, i am sure that any independent person would agree with this. this was another "extend and pretend." if we were to agree on it, we would be extending maybe even month, the banks would be open, but we would have the same situation as we have had the last five months. what we are saying is, no more extending and pretending for the people.

to this, this has absolutely no funding proposal with it and no debt instability analysis, not worth of the paper is written on. this is what we say no to. this type of mentality. just sign up, take a small bunch of money to tie you over and then we come back to the same crisis and situation, it is time to end this. >> if it is voted yes, what will you be prepared to sign come tuesday morning, if there is a yes vote? >> do you have any doubts that if there is a yes, the same proposal will be back on the table, it certainly will be. it is what the institutions want. >> and that is what you will sign up for? >> we will find a way, maybe we will change the government.

>> but there will not be a yes vote, i'm quite confident that the greek people have had enough of extending. and the rest of the world. >> so, if it is a yes vote, come monday night, you will not be finance minister. >> i will not. >> ok. this is a make or break. >> i will help whoever it is to help push it through. to push it through that building over there, the greek parliament. >> and you think that there will be a coalition formed at that point? >> there is no sense in speculating now, especially the greek people say no, they have had enough of losing dignity by signing agreements and making pledges that simply cannot be met. ♪

♪ >> the biggest names talked to bloomberg in 2015, over the past 12 months, we have discussed the future of the banking and how to prepare for the corporate world.

the finance ministers surprised many when in a debate in pairs -- paris he predicted a future without oil. ♪ >> in saudi arabia, we are not thinking about eventually, eventually we will not need oil. i do not know when, 2040, 2050. or thereafter. so, we have embarked on a program to develop solar energy, why? when we look up, we have the sun every day. panels, we have acreage to lay them out. so that sounds like an attractive project. so we have embarked on developing a major integrated industry from the ground, to the

panel, to the electric company, and hopefully one of these days instead of exporting fuels, we will be exporting gigawatts of electric power. does that sound good? [applause] >> one of these days, in 30 years? >> no, no, i think you will see major gigawatt production of electricity in the next five years. ♪ >> there were major changes in the european bank industry this year, it was not just a matter of a different face at the top, most large banks announced changes. let's hear from ana botin, but first, what happened this summer. francine: you were the golden child, right? you came in over the summer, you

are the guy that turned it around, how much pressure did he go into looking at this huge restructuring, do you feel like you delivered? or that you have been misunderstood, or is it just a huge job? because you were the messiah for credit suisse. tidjane: you know me a little and you know about long-term, i have not been afraid of my short-term reputation, it goes up and down. you are never as good as we say, never as bad. so, i was pushed when i arrived, we got a new strategy, new targets, a new team and in three months, i think we've done a reasonable job. >> it was a very challenging quarter. in addition to everything you mentioned, think about the seasonality you have during the summer.

you go from an environment in which the fed was expecting to hike and it turned out to do the opposite. big changes in the sentiment of emerging markets, what happened in china, on the geopolitical front. i am very glad that we managed the risk of the bank effectively and we also managed in good times. and that is the biggest success. leveraging in asia, should we be concerned for 2016? >> not really, while the journey of asia, of growth, that is still intact. it is a little more volatile with everything that has happened, but i feel very confident that we will continue to have a substantial part of growth from asia. of course, it will be a more challenging environment, going forward. but we are prepared. >> let's talk about the central investment bank, everything you set out to do. where did the equity come from?

and is it sustainable? >> it is very sustainable, if you look at the last 12 quarters, the fact we had always beaten our minimum of 15%, always about 20%. in good and bad market conditions, we are very focused on our resources to serve clients and become a very effective successful business model. ♪ ana botin: we know where we want to go, we now need to execute. again, we are a bank, it will not be as exciting as the last few months, it will not be about new people, raising capital, that is over. it is now about executing for customers and continuing to work for shareholders. that is a big task. i always think about our people and team, we cannot attract the team, i want to have the best

team in the u k, and brazil, and we need to do more in strengthening at the third and second level. and of course, the biggest challenge we all have, the macro. but like i said, the balance between developing is there. the markets are in europe and the americas. it is split between developing and developed, things could get bad but we should do better than others, we will be affected, but less than others, that is what i believe will happen. francine: so no further capital raising? ana: we have huge potential to grow with existing customers, so we do not need to buy. we have and we will continue to look at opportunities in our core markets, but it is not something that we need to do. ♪

♪ >> british politics attracted major international interest in 2015. the polls predicted a knife edge result between conservatives and labour parties. tory leader david cameron no longer needs political partners

to stay in power. the gains of scottish nationalists made political history while the labour and democrat parties were thrown into disarray. but the labor party leader launched his campaign here at bloomberg back in march. >> you talked about the bigger case to make a profit downstairs. >> absolutely. >> what is an acceptable profit to make? >> that's about the way markets work and i think it's really important that companies with making profits, creating wealth and employing people. there's a big issue for me as labour leader going into this election because i know we're not going to have money to spend. we're actually going to be making cuts if we get into government. we have to work with business to create higher paying skilled jobs that our country needs and that is the big choice of this election. because i think, you know, david cameron wants to say things are

fine, we have a recovery now and it's ok. not the reality i find when i go out and talk to people. i think people feel the recovery hasn't reached them. we have to have good-paying jobs that is going to build a recovery, and actually reaches everybody in our country, not just some. >> by coming up with this bright idea, at the time of elections, which definitely gives a hope to him to -- but again, i have met him personally. he's a very sensible and a person with depth. he may not look it but he has fire in his belly. >> there are circumstances which i would leave this country, regrettably but i would do, yes. from a business point of view,

actually, it's kind of a -- you know, your board will say it's about time you contemplated redomiciling. in cities like new york is not easy but it's doable and a much more clement environment. >> the drama of the election results took everyone by surprise. three political leaders resigned in its wake. >> any personal disappointment i have at this result is nothing compared to the sense of sorrow i have at the result that labour has achieved across the united kingdom. >> i declare cameron mathias is duly elected as member of parliament. [applause] [cheers] >> i said as this campaign went

on that if i didn't win i would stand down as leader of u.k. so i should be writing to the u.k. -- ukip national executive in a few minutes saying that i am standing down. >> of course, i must take responsibility and therefore i announce that i will be resigning as leader of the liberal democrats, so we can have a government that stand up for working people again. and now it's time for someone else to take forward leadership of this party, so i'm tendering my resignation taking effect after this afternoon's v.e. day commemoration at the centaur. >> generally for business, because of the position that labour was taking, particularly in relation to bashing big business, i think it's good news, and we see that in the markets, whether you look at sterling or the equity markets but attention will turn for a great evening for the s.n.p., interests for s.n.p., as i remember it, pro europe.

if there was a referendum vote against to come out, where would that leave the s.m.p. and where would that leave the union? the issues we'll focus on will be the referendum, the union itself. the election has been divisive. it's been, as one journalist said to me earlier, election around identity and the growing identities we see in scotland, wales, and other parts of the country, and last but not least it's about the deficit. the chancellor has done a brilliant job and positioned the conservative party perfectly for the election. it's the economy, stupid. is again, i think the lesson from this election. there was this big debate as to whether people were feeling better. well, the polls seemed to indicate they felt better and i think the other thing that was working in the conservative party's favor ultimately was

this s.n.p. aggression, this position about trying to lock david cameron out of downing street. that came and i think that reverberated against the s.n.p. and against labour. maybe ukip voters came back to the conservative party. net-net, a good evening. now the next big issue, to some extent the scottish parliamentary elections next year. attention will be on this issue again as well. francine: looking forward, britain is placing europe on course to be the major political concern of 2016. >> from a stability point of view, it is relatively important that we stay in the european union. we'd be much stronger financially and much more likely to attract inward investment, have a much bigger export market. all of those things would indicate -- and just the fact he

referred to the contingency plan as an extreme-risk scenario i think says it all. >> we had a mostly european conference. 50% of our revenues, whatever -- whatever comes from europe. it's important you look inside the single digital market, because being outside would be more cost. we are in favor of remaining inside this economic space and, of course, we hope that this will be the electorate's decision, but the voters will have to decide for themselves, and if the vote goes in another direction, we'll make our own assessment. >> i think it's in the interests of the u.k. to stay in the e.u. i have not moved from that statement and i think it's to our economic interest of the u.k. to stay in the e.u., and i have enough faith in the pragmatism of the british people, and i think in the end that will be the outcome.

>> there is a feeling in europe that we would rather have the brits in than out, but we're not going to bend over backwards and compromise the future by pandering to david cameron. ♪

♪ >> international sanctions imposed on russia started to bite in 2015, but the killing, albeit with lower numbers, continues in ukraine. we spoke with the presidents of both countries here on bloomberg tv and reported on the human tragedy unfolding in eastern ukraine. >> the fast-moving car should have been a clue. >> small arms fire there. you don't have to go very far to find the fighting. we're right on the outskirts and as you can hear, there's a battle going on. [gunfire] >> we came here to film some of the destruction caused by the war. what we didn't realize was we're not entirely outside of the battle zone.

turns out i'm standing on a tank parked just under the bridge. a fighter, off camera, trains his gun on me and tells me not to move. he wants to check our documents. satisfied with our papers, he relaxes and we're free. here we go. next day, we returned better prepared. a flak jacket. put on a helmet here. last but not least, fresh batteries. [car engine starts] [speaking russian] >> we're being driven to the international airport, the most fought-over piece of real estate in the entire war, by a pro russian fighter who goes by the name of crimea to get a sense of

what lies ahead. two truces have collapse already. crimea thinks this one will too. [speaking russian] >> he says a ukrainian militia that enjoys as billionaire's backing is shooting at them right now. >> just keep a low profile. could be snipers. >> [speaking russian] ♪ >> a series of strange moments awaits me. it's international women's day,

a big holiday here, and crimea and the fighters have come with guests for another member of the separatist battalion. >> [speaking russian] >> [speaking russian] >> ukraine spent hundreds of millions of dollars building the airport. the city was about to host the european soccer championship and the country wanted to show it, too, could have a world-class airport. it's now a wasteland. it's only value is that of a buffer. this is utter destruction. i've been in demolition sites, war zones, i've never seen anything quite like this. it's not every day you see an

armed personnel carrier in an airport terminal. it is more than clear no one is going to fly here for a very long time. the apocalyptic scenes go on and on and we didn't even see all of it. half of the airport is guarded by another battalion with its own chain of command. just like the ukrainian side, the fighters over here aren't always on the same page. later in the year i sat down for an exclusive interview with ukraine's president. >> one of the most effective sanctions is the -- sanction, including financial one. but the purpose of this sanction is not to make -- not to be the most harmful for the russians, not at all. we just want to create the motivation. please stop the aggression. please stop the fire. please stimulate the settlement of the agreement in the economic social humanitarian spheres.

we have obligation when necessary to do. >> i'm on my way to st. petersburg, where the russian president holds his annual forum. it's going to take place later this week. he effectively encourages business leaders to come there and pitches investment in russia. what would you say to the investors and leaders coming from the outside? do you think they should stay away from russia? is that your advice to them? >> look, everybody should undertake the steps which are dependent on them to share the values which they believe. ukraine, we are fighting here, not just for the money, for the salary, fighting for values, european values. i'm very pleased that the people of the whole world are demonstrating solidarity with ukraine.

that's what happened during the voting in the general assembly of the united nations. that happened many times. but not only the leaders of the state, not only the leaders who are the government, not only the politics but the investors and businessmen should demonstrate that they also share the same values, and if they share the same values, they follow the sanction approach which was demonstrated by the country, because without that, it would be simply impossible and making business in russia under these conditions would be extremely risky. ♪ >> and a week later we sat down with vladimir putin in russia's imperial capital, st. petersburg. charlie: what are acceptable borders for ukraine, for russia? what borders are acceptable for you? >> [speaking russian]

what do you mean when you are talking about boarders? geographical border or political borders? what are you talking about specifically? as for cooperation, we've always said and we're going to say that in future. there's nothing new about that. despite all the difficulties of today, i've always thought that ukrainians and russians are one people, that there's one ethnic group. while certainly they have the cultural peculiarities but they have common cultural, common ritual foundations, common history. whatever happens, in the end, russia and ukraine are destined to a common futurity.

>> just as a conflict in ukraine was dying down, russia began its first military intervention outside of the soviet union in more than a quarter century in syria. russia's rift with the west continues. ♪

♪ >> in 2015, bloomberg video journalists ranged far and wide. we featured the micro nation of liberland, the hunt for gold in ireland. first, let's look at iran. the rial has declined significantly since sanctions were placed on the country, a vast open-air currency market has been created. we visited one street trader to find out how life has change with the currency's decline. >> downtown tehran by the

bazaars and -- men gather. money is held high and there is a trade. at the end of this street you find the informal currency market. if you want to know how sanctions have affected iranian spending power, you just have to go there and ask people how much it has been affected. the rial lost nearly 2/3 of its value against the dollar. the government has cracked down on the informal traders who trade on this street corner, and they don't like being filmed. one trader did agree to speak to us, though. >> [speaking in native language]

>> since the new bill was signed, the rial started to stabilize and hopes are high. high enough to be quoting shakespeare. ♪ >> two sixes, two sevens. when that is initiated, it can go off 700 millisecond afterwards. >> to make headway down a mine, you need explosives. these ones come with a police escort. until recently, bringing

explosives into northern ireland simply wasn't possible. [explosion] >> this isn't any old mine. the company operating it say there are at least three million ounces of gold in the ground. >> typically you get one that you do. we have at least 10 which provides more scale on the production. >> at current prices, which are 40% less than their peak four years ago, it would be worth almost $3.5 billion. despite this, lower gold prices means investors are harder to find. >> they are doing the geology. >> the c.e.o. might always not take life so seriously.

when it comes to this mine, he doesn't joke. >> we haven't found the bottom yet. these can go for kilometers. >> in is one of six test drills which together have mined over 100 miles of core so far. far.designed to build an image -- 100 kilometers of core so far.designed to build an image of what's below the surface and ultimately satisfy investors. at the company's core shed, an army of geologists pore over the findings. >> we get to this pinky looking material and within those, these are the iron sulfides, these shiny, metallic, glittery minerals. that's where the gold is. half goes to the lab. half stays here as a permanent record and there's a big shed full of about 100 kilometers of similar core.

>> there's the belief this mine could become one of the world's biggest gold finds. >> that will sustain the operation through even tougher gold prices than we have now. >> with 100 staff on site, the company is expecting the work to grow to 300 projects fully realized. drillers are working shifts around the clock. for them, it's full steam ahead. ♪ >> meet jedlicka, president of what he hopes will be the world's newest country. the free republic of lieberland. people ask me how do you get permission? you don't. you just go ahead and do it. >> he founded liberland between croatia and serbia. >> anybody can use any crency

whatsoever. there are only going to be voluntary taxes and the whole nation will be run by crowd funding campaigns. >> liberland will be the third smallest sovereign state in the world after the vatican and monaco. >> it's like any other nation in the world. we already do have a government and we already do diplomacy. >> there's only one problem. >> croatia government decided they'll block off the entire territory from all sides. >> despite this, liberland has collected funds through crowd funding. it offers shares at one french -- one swiss franc apiece. >> i put up saying there's 100,000 shares and if you're

interested, contact me. they were sold out in 30 minutes. -- out in 40 hours. >> these zealots are the real hero. crashing daily with croatian border police. >> they've deployed maybe 70% of their entire border police in this small region. they are running out of options and the more they beat up our settlers and activists, the stronger they make our movement. >> it is a movement gaining traction all over the world. >> we are registrations around 365,000. we have 8,000 people from the united states. 5,000 from russia. it's not a micro nation if you consider the number of applicants. right now if we accepted everybody, we would be larger than iceland. >> liberland may be a long way from becoming a real country but to its founders, it is only a matter of time.

>> thanks for watching our "bloomberg best" year in review special. we finish now with a look at our top bloomberg photos of the year. ♪

>> the contemporary artwork is vibrant and booming as never before. phenomenon,-century a global injured -- industry in its own right. "brilliant ideas" looks at the artists at the heart of this. they have a unique power to inspire, astonish, provoke, and shock. in this episode, we meet chinese artist xu bing. ♪