banking, it is a funny old game. >> joining me now is our next guest. how would you assess mark carney's one-year tenure as governor of the bank of england? he is a good worker. success.it it is a >> has it been as much of a success as some of his other central bank colleagues around the world? mario draghi has announced some significant measures. janet yellen has taken over for ben bernanke. where does he stand? aggressive policy, which is bringing success. it is what we need at the ecb. >> the structural, the investment that is needed. >> to be frank, it is everything. we have everything. yes, we do not have this in europe. at this date, it is at a standstill. x yesterday's inflation number highlight the need for further measures down the line? likely to have additional measures. it will not be enough. ecb is putting in lace the right framework -- in place the right framework. it is not enough to kickstart. >> will be italian prime minister's push to allow a bit to meander around the edges, will that give countries like france and italy room to boost growth measures? to reduce unemployment? is that the sort of policy we need, patrick? >

assets, the bank of england and sterling. the bank of england holds one third of u.k. gilts.ot belong tooes george osborne. therefore, we are keeping the pound. >> despite westminster, the chancellor of the exchequer telling him that he will not be able to keep the pound, he says that does not matter. if there were to be a yes for andpendence, all the assets liabilities of the u.k. would be up for negotiation. he puts the pound and the bank of england and the nuclear program that the u.k. has and all of these other assets and liabilities all into a basket and he says all of that will be decided by negotiation after the vote. still a lot of questions. >> i find it remarkable. we are going to keep the pound. we are going to stay in the eu. rajoya rajoy -- mariano saying there is an interest in catalonia. everyone else saying you are not going to keep the pound as well. , thereou are voting here are a lot of questions that you will have going into this. a lot of areas where even the saying are basically these things will be decided after the vote. >> fascinating. great topic. so

a lot of people looking to see what other central banks around the world do, may be taking their cue from the bank of englandof the meetings in spring have been moved to accommodate the election. the bank of england very sensitive to this. stay with bloomberg because we will bring that rate decision at 12:00 today. >> i wonder how mark carney has been looking at his history the -- history books. up, recruitment company hays has just reported fourth-quarter results. >> time for today's company news. the mistakeest airline indigo is said to be in talks with airbus. the order may be worth $36 billion. indigo is seeking to buy 200 more a320 jets. is also preparing to introduce a revamped version of its wide-body a330. it will have more fuel-efficient engines. airbus has lined up enough early buyers, including air asia to proceed with the new model. lufthansa will create a long hold -- a long-haul discount arm. it is in advanced talks with turkish airlines to partner in the venture. the carrier will fly to cities in asia. says that high-end travel also remains a priority for him. re-fleeting with a new first clas

chrissy you mentioned the fed and bank of england. stay with us. marco carney, one year since he took charge as a bank of england. carney, one year since he took charge at the bank of england. tom gibson takes a look. were football teams, mark carney would be just star striker. when he stepped in, he faced a tough task. his fans were cheering him on. almost right away, he launched his first attack to stop the introduction of first guidance. not all of his teammates approved. fasteryment went down than a desperate player in the box. just six months after announcing his guidance, garney -- mark carney loosed the goalposts. and the u.k.today is at the top of the league. with economy, he may need to go on a counterattack once again. central banking, it is a funny old game. >> it is a funny, old again. to governor carty. -- it is a funny, old game. -- to governor carney. not a great record. first are comparing a central bank governor who had a superb track record at the bank withnada and i can go on the criticism at the moment of mark carney is not justi

you mention bank of england minutes. tling, the possibility of an early hike, what impact might that have? just come an little lower, 1.7035. day two of where the rebel is beginning to rise again. ruble two of where the is beginning to rise again. you have dividend payments, tax payments, push and pull issues in the dollar/ruble. companies driving momentum. 15 companies reporting earnings in europe. it is all about outsourcing for the u.k. company. this is one of the biggest outsources, they government and education contracts, i.t. software, the whole backdrop to government agencies. 97% of their revenue is based in the u.k. a nice set of numbers. the u.k. is the powerhouse behind that. paris, airbus, up .8%. socgen up 1.5%. >> we have around 27 minutes until "surveillance." tom keene at the helm. we have earnings, apple out last night. any number of technology companies today, including facebook. the geopolitics of the moment. will join us, he works with ian bremmer at the eurasia group. we will get into the debate of sa

and the bank of england releases minutes later this morning. ing for any signs of the bank is ready to raise rates. the u.s. and u.k. have seen accelerated job growth which could mean higher rates by the end of the year. >> that was ahead of estimates. it said it was on track to achieve its 2015 targets. let's talk to the man who runs the business in amsterdam. tom joins us. they can for join us. theyr than it estimated -- do for joining us -- thank you for joining us. better than estimated off its -- profits. currencies affecting our top line, we have been able to increase our operating profits. >> can i ask you about your plans for growth? in november, you are talking about putting production hikes in sweden, germany, and other countries. to growtill have plans in russia? all those plans unchanged? our evenue in- russia is small. our focus has been with the victims and their relatives. those not only in the netherlands but around the world. that has been the focus of the company. everybody in the company knows somebody here in the netherlands.

the bank japan the bank of england and the swiss national bank have policy rates at or near zero and growth just still isn't taking off is it a case of the wrong tools or are things that bad. well we're in this place because this is how governments decided to respond to the global financial crisis sort of kicked off in two thousand and seven and supposedly wound up and ing in two thousand and nine and policymakers sort of got themselves stuck let's not forget that low who are using money means that we've got low borrowing costs for

the question that the bank of england was focusing on is, how well our house prices matched to earnings is something that nationwide notice. nationwide said there is room for a slowdown in the pace of growth but they still see that the picture is positive. >> do investors having had a week to digest the measures, do they think they were strong enough? be that thems to fpc could have gone further. >> there was a sense that they could have done a lot more. the bank of england will argue they are not trying to undermine the market. they are trying to prevent over exuberance in lending criteria. >> the biggest concern is still indebted to us. thanks a lot, jennifer. " we haveing "the pulse more on the housing market. an exclusive interview with kate parker. that is at 10:40. coming up, global m&a activity is at 2007 highs. deals are being done with 2014 creativity. more on the new era of dealmaking after the break. ♪ >> this is "on the move." are stolencom stocks today on news that orange isn't proceeding with a consolidation deal in its home market. here with more is caroline hyde. good mo

of staff at the bank by 50% in the last year. he has brought in mckenzie and deloitte. how big do you think the bank of englanden you were there to where it will be when carney leaves? >> well, i think that carney joined a bank which had been very stable for 10 years or more, pretty much every one there had worked under the same management for a long time and he has brought in a breath of fresh air. he has changed the top tier. he has a completely different style to mervyn king. here is a guy who is very comfortable speaking off the cuff spontaneously in interviews and so on. much more at ease as a public figure. i think he is reshaping the bank. what hasn't change second-degree aierarchical ns organization. he hasn't faced much resistance. he arrives with an expect of forward guidance will be issued. it is issued the following month. on the whole, i think people want him to succeed and take his lead. in the autumn, i think we'll begin to see perhaps some members of the monetary policy committee starting to say we should be beginning to raise interest rates. that would be the first sort of breaks in the ranks.

it is not good news for the bank of england. eating roaches on their target. upside. de, the hawks will be emboldened. they will have all of their boxes. for the doves, is this going to change the game for them? probably not. butas a very big surprise, they can cling to the fact that we have been below 2% since 2005. the other problem, wages. they have not been growing for the bank of england to turn around and say let's hike rates. you look at the fact that the house prices are north of 10.5%. is a lot. when he sits in front of a lawmakers and says we have theyduced new measures, can only be 15% of your new mortgage lending -- >> mortgages over 500,000 would be capped at or .5 times the earning. >> the proportion of mortgage lending is below that number anyway. he is making the right noise. it does not change the game. we did a survey this week. the first rate hike, would it come this year? in three economists said yes. i imagine a lot of people will change their view on that. they know the votes make him throw off the back of this. >> we will leave it there. staying

european sovereign bonds increasing the balance sheet of the central bank in europe to equal the balance sheet of the federal reserve bank and the bank of england where they're taking on trillions of dollars euros yen of course bank of tokyo being the granddaddy of all this in toxic debt to the point where this too will reach its point of no return and they'll be a massive sovereign debt bubble the likes of which the world has never known before i think the e.c.b. asset purchases will bring us to the end of this bubble phase in the relatively short order well usa today on this article even though they present it with those charts and the with the misleading title of is the fed fueling a giant stock market bubble they say no no no while the fact that the fed's monetary policies have caused stock prices to soar it doesn't mean there's a bubble they say that in fact the reason for this is simple in order for there to be a bubble asset prices must be more than inflated they must be irrationally inflated and the like i've discussed this isn't the case if anything in fact the increase in asset prices is entirely rational and what does he use as his a

bank of england minutes that is where you get the color of where banks are going to go. >> we are watching. changing of the guard. the new chief executive after three and a half years as chief executive. 40 years at the company and is going to be leaving. investors more worried about the sales. theeopolitics clearly background for all of this. toy are meeting tomorrow discuss possibly whether there will be further sanctions on russia. all of that a topic of conversation. will see you again tomorrow. . . >> good morning, everybody. welcome. you are watching "on the move." i am guy johnson. moments away from the start of the european trading session. futures are pointing higher. we are brushing off the geopolitical tensions from ukraine, the middle east. let's talk about all of these stories. now, ryan me chilcote, elliott gotkine, caroline hyde. >> russian business is staring into the abyss this week. the u.k., germany, netherlands warning of more sanctions. i have the latest on malaysian air flight 17 and the outrage. cairo.y to due in the egyptian capital to broker a cease-fire. the death

the evidence i've seen from the bank of england which is that things like one stage of easing actually helps the rich much more never one else maybe that is something we should be worried about now the british council and george osborne has focused on austerity and he says that this focus is behind the improvement in the british economy is he right. i think the evidence is the there is a lot of confidence with businesses but whether or not that actually is a product that was thirty would be a very controversial argument because they were they were doing austerity you know four years ago and three years ago and the confidence wasn't there then so is is is the confidence a product of a you know just just a just you know as ken said you know in the long run the sea is flat and everything recovers and you know markets tend towards growth and and so on or is that case of yours there it's working well you know we've had in britain we had a worse recovery from the two thousand and eight slump in the great depression so i think right now. the signs are that austerity. it doesn't look so good a

not the degree of tradition in terms of openness that exists in the bank of england. efore most people will go with the yellen view. that is good enough at least through the remainder of the year. that is why we think the the quantity will dominate rather than the fed rate expectations. 2015 will be a different trading world. >> it is. the bank of england could be hiking. can we find ahead or is it too early? >> is too early. >> when do we start making our moves? october, november, the market starts thinking about 2015. we see some risk off, u.s. bond yields rising. the dollar rising. for now, it is risk on. selectively. pick the ones that have lagged behind were the ones that look out of context. we don't like the swiss franc because it has not had a big shakeup. we think that is vulnerable. we are in a different world. not the safe haven world anymore. >> mike. -- ♪ >> the readjustment. overall, fx volatility is officially the lowest since 1992. will trade higher, will the market reassessed when the federal reserve should hike rates? they want to look at the swedish

then the bank of england was a price the market is expecting that is contradictory -- was surprised theket is expecting that is contradictory. if you like losing the grip of the markets -- at least the direction of inflation has been down. it >> it has. what we need to do is watch earnings like a hawk both in the u.k. and the u.s. that is the first sign of any trouble on that front. >> great to get your thoughts. nick beecroft joining us from capital markets. coming up, vodafone is the to increase its share of spain's mobile market. that is coming up. ♪ >> welcome back to "countdown." i am anna edwards. let's head out to manus cranny for the fx check. today.-dollar just below i will bring you some shocking news from the french prime minister. this currency is overvalued. bad for industry bad for growth. the ecb needs to go further. that was the moment in time he spoke with this morning. that information hit. janet yellen speaks with the imf. says to sell or fade those rallies. something from barely 24 hours ago. it is having a great run. this morning we come back. a little bit worse tha

mark carney is currently speaking, the bank of england governor right now. had weaker business service sentiment data out of germany. not really a surprise on that front, but it was weaker even when analysts expecting right now, that market down 0.6%. similar story for the french and italian markets, under appreciate injury here, too. the question is how do you make money on these markets? >> this is the message, and it is on a long-term cousin. no doubt about it. the united states is clearly the leader of the pack. we also have significantly higher volumes in places like canada, we have brazil, we have russia, possibly kazakhstan. a whole group of other countries. >> it is a great thing i think for investors. i think if we look at it on dividends, the litigation issues have scared us in the past and continue. bank of america coming up, we know there's more litigation going on there. if you look at a high risk bank and trading revenue, it's earnings. for us, we want to see low volume till. >> we could see asset prices rallying if people have a view of reforms

i think there is a definite case for intervention like the bank of japan and the bank of england.rventions into the asset markets tend to distort the signaling and -- >> the signal to noise ratio is the moment. something has to come out of this. >> and is a function of the data. you will have the ecb going into will be as and this pricing mechanism. >> what you think about russia playing in the story? they say it will be a problem. >> so far, i have seen no problem at all for the race and i do- rate markets not think that we have any pricing of russia and european markets. factored in at this stage and if there is a material impact with european growth, that is not priced in. >> there is no impact in energy prices and we have not seen that in inflation markets. >> that will be significant. >> it depends on which way it comes. you can say it is higher inflation in the future. >> it is love growth. >> exactly. couple of days, i am intrigued to hear you say that. if you would see a slowdown in german growth, say it is off of gdp, how do they respond to that and that changes the dynam

now the bank of england has stopped its quantitative easing the federal stops in but the bank of japan is doing it and some people are now urging the e.c.b. to use it as well so what's the empirical evidence they carry has actually been effective as a monetary policy tool and the us britain or japan. well honestly i think the evidence still to come in and we can't rush to judgment but what we do know i think does point to the possibility of q.e. doing a lot more than it's this been done so far at least in the u.s. and the euro zone japan is definitely taking a very different path then the other major central banks is committed to a permanent belly of the monetary base is going to raise its inflation target from zero zero percent to two percent and the fed for example never made any of those commitments all the fed said is we're going to temporarily increase our balance sheet now that temporaries been within a few years but even now there are different debt to bring it down and it's the son came to you and say hey i'm going to give you a thousand dollars next year and i'm going to pay m

in the bank of england the two organizations in a similar way i think saying we have to think about the world as a creditor of an system the federal reserve and most other central banks around the world still dominated by mainstream thinkers who believe that you can't model the economy unless you use this to on a mix to cast a general equilibrium framework so that the ice is basically sending out a wake up call very much like the bank of england did with its statement about the money supply being created by banks creating lines again that's something which anybody working in banking and most ordinary people understand implicitly it's only economists you can't see that it matters now i understand the bill why it was a devoted prime in minsky's financial instability hypothesis so can you explain to me how that's relevant to the b i asked argument against fed policy well the some some of the be actually contradictory a bit to get that out of the why straight away the part of the argument i've been putting on a. i think this reflects the different competing strands and saw the boss itself a

i have any doubts that we'll see a significant pick up or at least one in which the bank of england shoulde worried about. the fact of the matter is, a lot of job creation we've had has been at the lower end of the scale. and that will keep a lid on wage growth. secondly -- >> so what you are saying is if we don't see wage growth much higher than the 1% growth year on year that we're seeing right now, it's not going to be a problem for the bank of england raising rates and moving forward? >> well, yes. they are probably looking more at q1 than q4 had, i would suggest. i think markets are probably a little bit ahead of themselves because wage growth won't be as significant. >> so sterling is ahead of itself, as well, then? >> to some extent. though if the fed goes early, the bank of england will go earlier. there's no doubt about that. >> great point. marc, great to chat with you. >>> during president obama's exclusive interview on cnbc, the president was asked if u.s. stock markets are overvalued. >> my estimation is that, you happen, we have a lot of savvy investors out there. you've got

every single central bank of the world been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is the old bundles bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not it's about a fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other along with russia it would align with china and around so hello twenty first century. so you got up ok go make some friends stay to have the psych about that interview i did earlier with arian cop out. this is what we do we kill people and break things we can see something is simple as people playing a soccer game you can see individual players and you can see the ball. you can almost see is facial expression you can see is a mouth open and crying

what we have then but nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is the old blunders bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and they're not a lot of the russia it was aligned with china and iran so hello twenty first century. so you got to go ok go make some friends stay there for the psych about got an interview i did earlier with arian compound. i marinate join me on. impartial and financial reporting commentary interview and much much. only on the bus and on the. right to see. first street view and i think you're. on a reporter's twitter. instagram. to be in the limo. i think. we're going

that is a problem the bank of england have a moment. is why is trying to keep some restraint on the whole rate hike for the tour. assume you do start to raise interest rates. --re is not a lot of time there's a big move higher, tentatively speaking. they will have to contend with that. >> how much is actually a strong pound concern for the british economy? --, we are trying to inflate is that much of a concern? >> is a good point. it is not had as much of an impact as people expected to, but it is the last thing we need right now. if you start raising interest rates, people are living on interest rates. last thing you want is any service interruption to the recovery going forward. you need all the strength you can get on all fronts. would be ae destabilizing force, i think. >> what did you make of governor carney's introduction. tore is some uncertainty rates. we made a hike. did you do the right thing? >> he did introduce the notion a process.is it was a good thing to do. as i see it, he still retains a diverse message. i think you wil

experiment through quantitative easing but now someone out there done with it now on one hand the bank of england in the federal reserve they're getting out of the game but on the other hand the bank of japan is staying the course and the e.c.b. could be joining the q.e. game in the very very near future so i spoke with monetary guru dr david beckworth about quantitative easing market monetarism and inflation he's a professor of economics at western kentucky university and a proponent of market monetarism and nominal g.d.p. targeting now i started off our conversation by asking him about conservative economic writer james had a coup because his complaint about. conservative obsession with inflation and their argument that it's under reported by the government that we're back with what he thought about this very subject and here's what he had to say. i think he makes a reasonable arguments and one that unfortunately is not always heard by my friends on the right he makes really great points if those numbers were true we would have seen a long recession i mean the implication of higher than reporte

equilibrium framework so that the ice is basically sending out a wake up call very much like the bank of england did with its statement about the money supply being created by banks creating lines again that's something which anybody working in banking and most ordinary people understand implicitly it's only economists you can't see that it matters now i understand that bill white was a devoted prime in minsky's financial instability hypothesis so can you explain to me how that's relevant to the b i asked argument against fed policy well the some some of the actually contradictory but i got that out of the why straight away the part of the argument i've been putting on a. i think this reflects the different competing strands and saw the boss itself are in favor of austerity and that's exactly the opposite of the argument that hamann minsky made about the financial costs like on with being through minsky's argument was always that the capitalism is inherently sokal the profit did leave us up the cycle and then leaves it down as well and he said if you look just at the private sector you could eas

what we have then but nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is old buddies bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other line of the russia it was aligned with china and around so hello twenty first century. so you got to go ok go make some friends stay tuned for the second i got an interview i did earlier with arian compound. it was a. very hard take i. want to get along here a lot have you ever had sex with her make her know. she. was. one of. the people. my friends there are now friends so said coco chanel jim has all been making a global wants are visible they can all ma

every single such a bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is all done this bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not it's about a fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other line of the russia it was aligned with china and around so hello twenty first century. so you got to go ok go make some friends stay tuned for the second half got an interview right then earlier with arian compound. dramas that can't be ignored to. stories others refuse to notice. the faces change the world lights next. to the picture of today's you know. from around the globe. dropped. to fifty. this is what we do we kill people and break things. we

that's creating headaches for the bank of england and the idea that it's slack right now in the economy. >>> the federal reserve bank of new york has accused deutsche bank u.s. operations of inaccurate and unreliable reporting. that's according to the "wall street journal." the german lender reportedly said the bank requires wide ranging remedial action and has made no progress fixing previously identified problems included inadequate auditing, shoddy financial reporting and weak technology. shares are trading lower in the session today. as you can see, down by around 1.6%. in a statement, deutsche bank says it's been working hard to strengthen its systems and control, adding we're committed to being best in class. deutsche says it's invested 1 billion euros and a thousand colleagues focused on its parts of a dedicated program. david, you've been busy? >> indeed. >> the banks keep you busy, it seems. talk us through what happens here. it's been discussed or described by the supervisors, the regulators as a systemic breakdown in financial reporting there at the u.s. units. >> yeah. the n

of where they are. central banks and markets. the executive director at schroeder. thank you. let's talk about central banks and the u.k.. -- the u.k. you do not think the bank of england is in a rush. >> i do not. kid havence i was a been a subject and people say that we need to cool the housing market. comments intelligent when they say that the bank of england cannot build houses. it is and of the day, factor. sure. like any market, profits get high and they come to bear. we are seeing that now. i expect to see that cool off. many houses as they can. there is a shortage of labor. all the results are coming out and they are good. if i am mark carney, i look at factors. sure, on employment is coming down. wages are not going up. at the end of the day, you put interest rates up and is this too much money in the economy? you are seeing the money supply. >> you bring up wages and you are starting to see them go up in the housing sector. there is a bit of a survey. you see wages going up across the board. a lagging indicator. you get more of that. can they change the game? >> the government desperately needs higher wages. if you are looking, the only way they can increase

is that a bit of a relief for the bank of england?gage approvals, i think they will take with some relief. manufacturing data, we tend to dismiss that. wanted -- i didn't quite get it, did i? great to have you with us. kevin daly. stay with us. we are back in a couple of minutes. ♪ >> welcome back to "on the move ." i am nearly finished for the morning. guy johnson is up next with olivia sterns. >> olivia is not there. she was doing "countdown." >> i haven't seen her in this office. how are you going to cover the world cup? >> famously. we are looking at that 7-1 defeat. hans is at lufthansa. we have the angles covered there. are you booking a flight now? you would have thought that next plane out would be fairly busy. we are going to be talking to one of germany's biggest beer makers. how do you prepare for a world cup final if you are one of germany's biggest beer makers? >> ok, we look forward to that. stay with us. that is it for me. see you tomorrow morning. ♪ . . >> brazil gets the boot. it's world cup dream is over as germany c

iran member when we set up the bank of england and i voted for interest rates cut and qe, in some sense normalize things and allow people to take more risks. the worry is that at some point with the very low rates for very people taketime, too much risk. at the moment it seems to be like your child who has training wheels on the bicycle. the economy still needs the training wheels on into dangerous to take it off. the worry is there are all kinds of other things happening like the housing market. this is complicated but still an economy on training wheels. >> euro area finance ministers suggesting they may be willing to get countries extra time to meet debt and deficit targets. they have to take measures to make economies more competitive first. is more leeway on that and deficit reduction the answer? mike that allow for greater investment and what that translate to growth? the euro area they have to do something. they have been inspecting -- expecting inflation to go back very quickly. they have expected the unemployment rates would come down. that has not happened. also a bit of shock

our guest for the hour, willis sparks, eurasia group global director. >> the bank of england has decidedes at a record low, half a percent. the members of the pink -- bank of england are no longer saying that a rate increase witnesses early hurt the economy. it might be paving the way for some sort of subsequent rate increase. stay tuned into the fall. economic data in the u.s., we just got the mortgage applications that come out. that is a weekly number. 2.5%. last week, it was down 3.6%. any comments, scarlet? >> it is a volatile number that we continue to monitor. every week am i goes back and forth between gains and losses. >> yes. earnings before the ball -- before the bell today, knowing, dow chemical, and after the bell, at&t. >> pepsico just out moments ago. $1.32 versus a consensus of $1.23. and pepsico just raise their guidance. growth percent earnings and that has been a surprise. a couple of days ago, coke showed earnings up four percent, better than three percent. i know it's not a lot. what else do you have four company news? >> in terms of company news, let's start with th

it has disappointed the bank of england for five years now. latest numbers are not that good either. actually that is the real focus of bank of england policy makers this month. they think they can keep interest rates low and have rate hikes gradual because they think it is going to pick up sharply. it has disappointed them yet again. that is a reason why at least one of them will vote for a rate hike. >> what i'm surprised about is that the u.k. recovery, particularly from the european point of view seems happening with isolation. the german story is beginning to slow down. we have a difference between an i.f.o. survey and a p.m.i. number. clearly there is noise surrounding a lot of the german data now. but at some point, these two have to co late in some way. correlate at n some way. europe continues to disappoint. confidence continues to disappoint. >> that is a big risk there. i think i described it as balanced now. six months ago they looked more to the upsate. ukraine and yause is a big deal for growth across europe and also the slightly