. >>> next a look at the future of the european union and the european economy. the energy market and defense policy. experts from the european parliament presented a report on the ramifications of dissolving the eu. the wilson center hosted the event. >> good afternoon. i'm christian ostermann. it's a great pleasure to welcome all of you on this beautiful late august day here in washington. i'm thrilled to see a good number -- a good turnout on such a beautiful day here, a good turnout for the eu and europe. we're delighted to host this event on mapping the cost of non-europe 2014 to 2019 with our colleagues and friends here at the european parliament liaison office with the u.s. congress and delighted to welcome all of you. for those of you who are -- most of you are probably familiar with the wilson center. for those of you who aren't, especially those of you watching on c-span, let me just remind you that the wilson center chartered by the u.s. congress as the official memorial to president woodrow wilson is the nation's key non-partisan policy forum for tack

national or european level.but the discussion that's been o occurring in public discourse in recent years has been hugely slanted back to the member states. there are certain areas where it makes sense for europe to coordinate together and in some cases it can best be done or may need to be done by the force of supernational law adopted by the institutions at union level. >> this document could be interesting for britain because it's a kind of update for the eternal market. and when a special situation here because in agriculture, we are completely integrated but it's 1% of the economy. we are quite integrated in industry but in industry is 25% of the economy is shrinking. there are new services and digital is definitely a part of this where we are not very integrated. so we are currently in danger of losing the internal market unless we updated to to new areas. and i think that's what's at stake. there are i think it is of special interest for britain because britain has focused on the internal market. on our p

european countries have been producing 100,000 cuban meters of timber. the bucharest headquarters has many of its products made in romania. the international forest stewardship council monitors logging operations but only a small percentage of them. >> only 12% of the supply from romania is certified. there's is another 8% that is controlled. m a 80% of the process has no seal. it is no secret that logging is rampant. he has some hard-hitting criticism of the authorities. he can personally testify to the deforestation of an entire mountain ridge. >> at the time it was my duty to report to the police. they were in cahoots with the timber thieves. the police were never able to catch the guilty parties. they must have had some incentive to sit on their hands. the only way we can get anywhere his act on our own. acting on their own became dangerous. we had to arm ourselves with rifles and pistols. the thieves carried arms. we were out to bring down their operation. under pressure from criminal gangs he had to quit his job as a forrester but he is still worki

ukraine and the european union ratify a landmark pact that sparked the country's crisis. we will talk to our correspondent in brussels. >> the french prime minister faces a crucial parliamentary vote of confidence. >> the world health organization warns ebola cases in west africa could start doubling every three weeks. but we want to begin in ukraine, which has its sights set firmly on the west erie of the country's parliament has ratified and association agreement with the european union in what lawmakers are calling an historic moment. >> keep in mind that their refusal to sign this last year is was sparked the unrest in the country. the eu, for its part, has welcomed ukraine with open arms tom i easily passing a deal as well. >> signed and sealed, he held of the document in kiev. minutes later the president of the european parliament signed the same treaty in stroudsburg. earlier the president appealed to ukrainian lawmakers to support the agreement, while people in stroudsburg listened in through a video link. it passed easily on both sides. 127 voted against. more th

i doesn't mean the membership of the european union, but it brings ukraine much closer to the europeannion and symbolically, economically for ukraine, it is a very important move. >> we're seeing lots of applause here within the european parliament, and it is an important moment because this deal is what sparked the whole crisis in the first place. >> it did. this is exactly the agreement that president yanukovych refused to sign under quite a lot of european pressure. this is something russia was quite unhappy with, still unhappy with, the implementation of this agreement is postponed, even though ukraine will have some unilateral trade preferences going on from the moment of signing. but the important thing also coming from the european commissioner was that this is the treaty where not a single letter will be changed. the only change that can be done will be by new parliament. >> ukrainian prime minister there as well. >> ukrainian prime minister, ukrainian president, who made a point in his speech -- >> shaking hands with everyone to congratulate people on the passing of this. >> i

european countries have been producing 100,000 cuban meters of timber. the bucharest headquarters has many of its products made in romania. the international forest stewardship council monitors logging operations but only a small percentage of them. >> only 12% of the supply from romania is certified. there's is another 8% that is controlled. m a 80% of the process has no seal. it is no secret that logging is rampant. he has some hard-hitting criticism of the authorities. he can personally testify to the deforestation of an entire mountain ridge. >> at the time it was my duty to report to the police. they were in cahoots with the timber thieves. the police were never able to catch the guilty parties. they must have had some incentive to sit on their hands. the only way we can get anywhere his act on our own. acting on their own became dangerous. we had to arm ourselves with rifles and pistols. the thieves carried arms. we were out to bring down their operation. under pressure from criminal gangs he had to quit his job as a forrester but he is still worki

and are european slackers with low expectations? we discuss the latest controversial comments coming. >>> plus, plenty more to come from the goldman sachs leverage finance conference. after the break, we get more from this thursday's ecb meeting and cohead of the economic theme. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm. >>> welcome back. the european commission has findings over irish tax deals with apple. the document is part of a wider tax avoidance probe into several other multi nationals. apple has been operating in ireland since 19830. did company has invested over $100 million in the last several years and it is the largest employer. >> we're just getting more flashes through on this story. the commissio

other western european countries are facing as well.scotland becomes independent, there are loads of scenarios, they depend on variables, it is difficult to say how it pans out. the middle of those scenarios effectively say, scotland would be able to function as an independent country, it wouldn't be the land of milk and honey. in terms of increasing welfare, reducing taxes, that is probably is not possible. it is probably somewhere in the middle between the stories, it depends on the price, it depends on, for example, scotland has a strong financial sector. the most important financial place. the largest financial center in the uk, larger than westminster or birmingham ham. some said they may consider moving to england f they do this, what does it mean. more companies say they would invest in scotland if it becomes independent it is hard to access. there are risks and opportunities t depends on external influences, oil price, how much oil is in the north sea. how much is taken out. which you have conflicting view, some put it at the to

>> it is very significant for the ukrainian european union. you can see, the deal was ratified simultaneously, and ukrainian parliament and the european parliament in strasbourg. this marks the completion of months of negotiation. the celebrations are being overshadowed by the last the development, basically last friday when the ukrainians russians, and europeans met in brussels, it was decided the economic chapter of the free trade agreement would be delayed until next year early 2016. this is regarded as a major concession to russia. we know they had blocked resisted ukraine's move away from its sphere of influence closer to the european union. but in brussels and strasburg, europeans are adamant that this does not put the deal into question, that a deal would be fully implemented at the end of next year. rather they are trying to listen to russia's claims to see how they can assuage these claims. >> so it has not watered down the packed significantly, is that what you are saying? >> we will have to wait until next year. the political chapte

. >> at this moment, european not a reserve. of power is more than european central bank. for draghi -- for the future, i think the first thing in this moment is realized structural in our country. this is the commitment. now the situation is in the hands of the government, not in the european central bank. draghi makes very in port of things. now it is the responsibilities of government. >> are you saying that he shouldn't go forward with quantitative easing or it wouldn't be effective? decisions the recent about a similar quantitative easing, my personal pinion, the decisions are good. the results after the first month and after the period in the siding about small and medium entrepreneurs, for the moment, it is impossible to give a judgment until the fourth concrete results. >> we will bring you more on that. an italian business getting punchy about what needs to happen next. renzi needs to go faster, further, focus on a few things. we will get ricardo barbieri's take. we will talk about renzi, draghi, france. air france, its management has caved in. extension ofd europ

joined by my guest neil clark in london he is a journalist broadcaster and specialist in eastern european affairs in amsterdam we have karl van wolf he's an author former correspondent for the dutch blood and a professor emeritus of the university of amsterdam and in st petersburg cross to gilbert doctorow he's an international affairs analyst with a concentration on russia right gentlemen cross talk rules in effect that means you can jump in anytime you want and i very much encourage it neal if i can go to you in london i can't think of another political event going in the world right now where there are diametrically opposed narratives we have narratives about ukraine that are coming out in western media and western capitals that are directly opposed to what average russian would read and alternative media in general how do you explain it i mean this is really a bizarre set of circumstances we all know it's about geopolitics i know but how could we get so far apart. well it really is and i think we could call it all well you know but i think it's beyond oh well you know it all started u

yes, he is talking about the entire european union, but in some ways, the rest of the european union's are tied to the germans. it is a clear message to the germans, loosen up a bit. [laughter] >> i think that is probably a decent message. interesting how it is being delivered. hans nichols, thank you very much indeed. up next, a bloomberg exclusive. as tensions in eastern europe grow, we will be live with the head of the national bank of georgia. ♪ >> welcome back. you are watching "the pulse." we are live from london right here on bloomberg tv. let's go to the ukraine. aregovernment in kiev createand accusations to cease-fire negotiations. we sent ryan chilcote to the front lines. he reports from what is effectively a new frontline in ukraine. >> you could forgive the soldiers outside this town in eastern ukraine for failing to be friendly. last time strangers made an appearance, the locals say they came with 100 tanks. this frontline city was saved by the cease-fire. is in the industrial heartland of ukraine and this is steel country. is owned bylant ukraine's richest man. more than

to european markets and european ra restaurants. so they're wondering, will they get a smaller quota and what will be the position of negotiation for an independent scotland. the yes campaign under alex salmond say we would restore fishing to a key industry, alongside the likes of oil and whiskey, and as such as the scottish parliament, we'd be able to negotiate independently instead of lobbying as we do at the moment. we protect your subsidies. we fight for bigger quotas and we'd also put money into scottish fish, establishing scottish fish around the country and also around europe to try and grow demand. the problem is -- and this is the point that the uk government has been saying, that many of the fishermen in this port catch 20% to 30% more than they would be allowed to do if they were independent because they buy and lease quota from other vessels and other companies south of the border, and if they became independent, they wouldn't be able to do that. >> we can hear promises coming from westminster, which we heard today. and

the caseorrelated in of euro and european assets. >> patrick, when you look at european companies, youentioned some companies that were earning in dollars. i want to see if you agree with goldman sachs on parity by 2018. how does that play for you? you mentioned a couple of companies. they are emerging-market facing. lvmh, these are companies that, if you have no volume growth, you just get a big tailwind in your earnings because of the currency. you have that head wind for these european domiciled companies. they have been delivering on profit margins and volume growth. >> this is a gift for european equities. saidd socgen in and they 1.25 would add 0.5% to europe. where do you go with everything you have said? as a does the euro go to benchmark as against the dollar and sterling? our carry is 1.25 by year-end. remember that the eurozone is still a country with substantial current-account noteus and we also have to that that current-account surplus may indeed grow if european savings continue to grow. there is a limit to which europe could depreciate against the dollar. there still is

the issue, i simplified the european issue. you could do a talk just on the european question, obviously, and the political views and so on. that's a strong interest. we do a lot of briefings in scotland on this. the spanish consulate is always there and a lot of catalan groups are always there surprisingly. there are the reemphasis and that is probably the other direction that would give people the feeling that the eu would secure the regional interest at the moment area you are absolutely right. if the eu would like to make itself relevant in this context, that is where they could be a moderator. i do also want to say in relation to the scottish context , there is a strong difference between different nationalist and separatist movements. the scottish one has not been emphasized in terms of cultural differences. when you talk about cultural autonomy, it is not unimportant. it is very much about self-governance and economic resources, inequality should it come up. it is much about this than national identity or language. clear

markets or less on the european markets heading forward? >> i'm afraid we are sleep-walking through the russia/ukraine crisis. that's the reality. it's hard to see a resolution, frankly. this has been going on for ten months. there's been a lot of focus on eu very senior diplomats and politicians, and we are nowhere near a resolution. it is escalating. and the events over the last few days, putin has made it pretty clear he's not going to butt out of ukraine. and if ukraine wants a western orientation, which the vast majority of the ukraine population does, he's taking crimea and he's likely to take other bits of the country. is poleshenko or the ukrainian population willing to stomach that or fight more to retain territory? these are huge question marks for ukraine. >> the imf approved over the weekend a $1.4 billion loan to ukraine. is that going to help them at all? >> it's a small change. it's basically covering up the cracks. i mean, the west is, doesn't really want to go down the sanctions route, doesn't really, as i mentioned, doesn'

the european or the ecb average with the 20%. and at least three points make up to 80 billion euros. >> very interesting. when it's talked about, there is enough flexibility on the fiscal side, as well, at the moment. they don't need more flexibility because the -- allow that, as well. interesting for the whole of germany. do i sense from what you're saying is you want to see more flexibility, you want to see more public investment, more private investment? >> we need more public investment and more private investment. i'm not speak iing spending mor money. i think austerity has been okay. but we have though shift from social expenses to investment expenses and innovation expenses. the last night months of the coalition, they care a lot about social expenses, yet to shift the policy into the future we have to care more about innovation, more about investment. we have this meeting with merkel and we talk about these topics and i'm confident that they will take -- let me ask you a very important question. when you met herr merkel,

we've seen european leaders committing today to a resolution. they say that in ten years time, all of them will be committing 2% of their gdp to military spending to the defense of the nato alliance, into their countries but a non-binding resolution. we'll have to wait and see if that comes to fruition. in terms of nato, we have to see what they will do about the islamic threat. many options on the table but no clear cut strategy or plan, as well. in terms of dealing with mr. put putin's territory, that comes down to the fact the european leaders that i speak to and nato leaders are telling me they want to use soft power and diplomacy and don't think a military solution will work. tough questions for leaders here at the nato summit. one day down, one to go. for night "nightly business rep i'm hadley gamble in wails. >>> how important is it for u.s. stocks and is it time for u.s. investors to pay attention to trouble spots around the globe? joining us to talk about this, chief market strategist and president of the group a political research firm

and of course the european union could retaliate by preventing russia from using european airspace, which could be a death sentence. >> so perhaps a continuation of the trade war we have seen going there. thank you so much for the inside. >> with the back and forth over sanctions and possible counter sanctions between the west and russia continuing, ukrainian president petro poroshenko visited the flashpoint town of mariupol, which we saw earlier. simon, before we came on air, there was a report from the kremlin saying that russian and ukrainian leaders spoke on the phone. any confirmation that this actually took place? >> we have heard confirmation, but not much details about what the two leaders may have said. there are scant details from the kremlin side as well. their announcement just said that the two leaders will continue to stay in touch, to work out the details, the steps that could eventually bring peace. this is not the first of the contacts between russia and ukraine in recent weeks. the two presidents have had contacts either directly or through their representatives. but it

welcome to the "european journal ." romania -- the politics of corruption. -- paris tries to polish its image for service. and austria -- royal march through the outs. corruption in romania is like a black hole. it seems to suck in everyone in the country. the police, business people, politicians. even the language is proof of that. there are up to 30 synonyms for

they went on low-budget flights to other european countries.the 20 to 25-year-olds probably still remember. the first time they went to the computer that now was connected to the internet. the first time they opened a web browser and that was something special. so, i think, we're looking at a genuine generational shift here where national identity still matters, it's not gone. but there is less of prioritizing one over the other. they're very comfortable saying i'm scottish, british and don't have to -- the number of those who actually identify as european has gone up, as well, in this group. a relatively small percentage. but three times nearly as large as the adults. so that's just the overview. and thank you very much for listening for 40 minutes to a lot of figures. but i hope it gives you a lot of starting points for interesting questions and discussion. >> well, you certainly demonstrate that the economy matters let me clarify one thing on methodology. you indicated that the polls of one of your -- i think the scottish social attitudes wa

both groups would want an independent scotland to be in the european union. it doesn't move people because scotland, despite being slightly more pro european, more europe friendly than the english, so the proportion that ones for britain to leave the european union is much lower in scotland than it is in england, but there is not the kind of passion about europe and scotland either. as you can see, over 50% of scots -- that's the blue and red over here -- in 2014, over 50% say either scotland should leave -- sorry, britain should leave the eu or it should remain in the eu but the competences of the euro should be reduced. we want to retransfer power back to the member states. that's not europe loving if over 50% want reduction of the eu's powers, what that says for scotland, the majority of scots yes want to be in the european union, yes and no voters both want to stay in the european union by and large but they want to do this for pragmatic reasons. because they see that's good. it is not because of some inherent passion for europe which sometimes, especiall

the eastern european business appears to be underperforming.hose are candidates they could realize. >> market positioning within this market, they are not little . they have a huge real estate portfolio, about as nimble as a tank. when people start talking about tesco repositioning, be realistic, how likely is it that tesco can reposition? >> real estate is a huge issue. they have about 20 billion of real estate in terms of value. they cannot simply just get up and leave. what do they do? they have to focus on lowering prices. they have to compete more aggressively. also, they have to revive the proposition to the customer who will say, i want to shop there. people are not choosing to drive to tesco. not only are they lured by by the prospect of lower pricing, but a better quality proposition. >> you are a buyer at 175? >> 170. >> james benton will be back when tesco -- james benton will be back when tesco gets down to 170. >> i don't think they will have time to do anything other than put together a quick statement to say he is working on it.

havas is over performing the european market.ro had a negative exchange rate impact of 26 million euros on your results in the first half. we have had the french prime minister, manuel valls, calling for more action from the european central bank to weaken the euro. inyou support mr. valls calling for the ecb to do more to weaken the euro? think the euro is a good question. [indiscernible] weeks have shown that the euro is slightly going down. maybe we will have a good surprise in the coming have. impacte, we have had an on every other european-based group. >> our exclusive interview between mark barton and the ceo .f havas up next, a sunglass ceo whose future might not be so rose-colored. we will break down after the break. ♪ " lives is "on the move from bloomberg's european headquarters in london. the ceo of the world's largest luxottica.company, a bit of a row. it could spell trouble. looks like a structuring -- a restructuring. andrew roberts joins us from paris. andrew, the board meets today. sts thatng down sugge we could b

european markets have pushed up.nd markets yesterday were torn between that statement that rates won't go up yet, but when they do go up, they could possibly go up more than expected. and the u.s. treasury yield is hovering around that 2.6% level. it was just below that yesterday, so yields have ticked up a little bit today. the german bund is up just above 1%. gilt just above 2.5% and the ten-year in portugal above 3.16%. as we look at currency markets, there's still a lot of volatilities in currencies which hasn't gone through yet to currency markets. the dollar index continues to push up, it hit a 14-year high yesterday. that statement from the fomc that the likelihood of inflation running consistently below 2% has diminished somewhat. that pushed the u.s. dollar up a bit against sterling. today it has softened a bit but, of course, sterling has been very weak recently. the yen intd interesting to touch on. the u.s. dollar strengthening again a little bit, now another new six-year high. mr. jegarajah is in singapo

and it has taken the european consumer a while to come out of their shell in the first place.heir recovery took a lot longer than american recovery did. >> yeah, and actually i would go a further and say some of those countries are still extremely weak. the size of italy's economy is 9% smaller than it was in 2008. germany has recovered the whole way, but france has stagnated recently. the spanish economy is still a lot smaller than what it was, whereas the u.s. economy has completely recovered, by and large, from the economic downturn of a few years ago, europe is still very much in the hole. >> what is the logical thing to do. obviously mario, and the european central bank, and these leaders, you know, can watch and see what russia does and hope that they don't do much more, but in the end is what the european central bank did by reducing interest rating and suggesting they might flood the economy in other ways, is that the best thing that europe can do right now? >> i think this is on the margin. if you look at quantitative easing that was done here in our country, we all k

rex google is trying to help europeans forget.ompany will start posting town halls and how to comply with a court ruling. hans nichols reports from religion. how much is there on the web that you will require to be taken away, what is the strategy here? -- wedo we talked about talked about off air was off air. publicitymassive stunt. what they're trying to do is get their side of the story out so they will have town halls and this is in spain where the entire case against google before the european court of justice was decided against them. they start in spain and the going to rome. you have warsaw, paris, brussels, london. the concern will are they geared too much against the public's right to know? we will see what his responses. the danger and this is quite a danger. someone who has covered a fair amount of local town halls is that these things can get out of control. they could lose the narrative. what they say is an easy form. if you have a complaint or concern about what is being written on new -- about you you fill out a fo

but certainly, she is breathing a sigh of relief as most european leaders and certainly the europeansion will as well. there have been some signs of warning from the european union going forward. there were a lot of european countries who have their own secessionist movements. every once in a while you have the bavarians who say they might want to leave the german federation. that's something that keeps coming up again and again. so there were these warning shots saying if you do this, there is no guarantee that you will be take be into the european union if indeed there is a vote to get out of great britain. so a lot of these european politicians are going to be breathing a sigh of relief because now they don't have to deal with that precedent. it is something that would have been very, very difficult legally and politically as well. as i said, there are a lot of countries that would have been very opposed to scotland joining the european union. then there is the big issue about the currency. could the scots get into the euro zone. so there would be a lot of questions that now don't

we work jointly with our european partners.we want to steer russia to a diplomatic experience to this crisis. so far, we haven't seen enough from moscow to sdpaurt implementing that framework. >> so senator mccain of arizona, we know he is one of the more strident hawks and critics of the obama administration. he said they're young conscript, ukrainians are getting slaughtered in the east, as well, because we're not giving them intelligent, body armor or anything at the moment. is the u.s. going to move to -- the ukrainian army? >> we are doing more. we welcome the engagement senator ukraine has had here and we're up to about 70 million in security sector assistance to ukraine, to the army, to the border guard, to the militias and we're going to continue to identify opportunities to help build the capacity of the ukrainians to defend themselves. but this crisis doesn't have a military solution. >> sir, is the view of the united states that the current cease-fire which is tenuous, is the view of the u.s. that it has a chance of

european equities are having a monthstart to the trading of september.ded just under 2% in terms of equity values last month, the best month since the start of the year. manufacturing at a 14 month low in the u.k. italy and germany are contracting in terms of manufacturing. you then go to the structurally changing country of greece and then you have expansion. the numbers tell the story of structural reform. not the rhetoric of what we need to do. it is as if you could hear the coming from france calling for a lower euro. which takes into the biggest call, jpmorgan has released a call on the euro-dollar. along with that, we have goldman sachs who has released their view as well. they have cut their six-month forecast to one dollar 25 from $1.34. parity by 2017. not sure what form of quantitative easing it will take . euro-dollar a little higher. jpmorgan says $1.26, down from $1.28. the momentum behind the calls coming from the various people and analyst in the community. parity, ooh. let's have a look at the smi. green in a sea of red. precise,ication,

leaders and european governments themselves.and we already had in august of this year is statement which supported these payments. >> to one of the topics that has been stealing all of the headlines, one of the biggest questions is if scotland does vote for independence, what currency it would take on. it seems like if you look at history, ireland has set an interesting precedent. talk us through that. would that be viable for scotland, too? >> indeed. ireland in the earliest part of the 20th century, kind of two-tier if you want currency arrangement with the uk, it took on the legacy of that but never repaid those debts and never really funded those debts as a result of that chief significant savings. but in order to convert the long-term fm contact that ireland had within the uk system at the time, ireland effectively paired itself to the sterling. and this arrangement lasted for a very long period of time, despite the fact that ireland had the currency afterwards. but the different, of course, is crucial. the side of the iris

coming out of the european union? ? thoughts >> well, i believe it would be extremely damaging to the united kingdom to leave the european union. undoubtedly the migration issue in a whole range of countries from france to denmarking right across europe, migration plays a part because people automatically link migration, free movement in europe, to the european union itself. in fact, a lot of that antagonism is misplaced and misinformation is behind many of the approaches that are taken to the migration issue. for example, in one recent ll, the average brit concluded that 30% of the british population currently was born outside the united kingdom. the total is exaggerated. it is three times greater than it actually is. this subject of migration has of myths ubject exaggeration. that needs to be addressed. on the broader issue of britain and europe, i hope there is no eal prospect at the end of the day that britain could leave, but at the moment the polls are very dangerous and it is interesting to note that the polls ar

what exactly are these so-called european values supporting coups a violent seizure of power and then crushing dissent with military might these what european values are now i think it's time we remind our western colleagues about their own ideals. president putin was talking just days after he met ukrainian president poroshenko in means can he has said that they agreed on more humanitarian aid from russia to be sent to eastern ukraine pointing out that this is a very important step forward because winter is coming and it will become harder for people there to survive through the cold. earlier this week ukraine's president petro poroshenko claimed russia had invaded his country international media outlets immediately ran with the story guy here to account looks at some of the coverage. panic alert in western media after key if tweeted that russia invaded ukraine when reports started coming in that fighting broke out between the rebels and ukrainian forces in the port town of. many were quick to claim that it's russia's doing what seems to be happening on the ground however is that rus

welcome to the "european journal p or co. this week, we look at ireland's dark past with home children. spain's human towers for independence. and crimea's soccer talents become a political football. our first report tells the story of how thousands of children were taken away from their mothers and raised in an environment devoid of love and support. if thi

bond yields in eight european nations on the two-year front selling in negative tower tower and europeaney markets fell o record lowest. >> these are the bloomberg top headlines. called for almost $1 trillion in stimulus to significantly steer the balance sheet back to the higher levels seen in 2012. >> the council decided to start private g nonfinancial sector assets. they will have simple interest-bearing, asset-backed securities. >> 13 of the world's biggest banks have been accused of banking u.s. antitrust laws. arclays, bank of america and stigroup. and comedian joan rivers has died at the age of 81. rivers was admitted to mount sinai hospital on august 28 after going into cardiac arrest for a routine throat surgery. u.s. department of health is looking into her death. >> apple and samsung, china's biggest network of phone. the number of phone makers will shrink to four. we played with their newest and joins us now. talk to us about market share. they sound like ambitious goals. >> their plan is to take over apple, but to do so they need to t into samsung's 25% apple share. in an in

europeans would have problems there. the second point i think is linked to the consequence on the referendum on the uk in or out of the european union in 2017. i think that a yes in scotland could help the supporters of the uk exit. in my view it could be a disaster for european union to lose the uk for many reasons. foreign and security affairs and also for financial reasons and also because the rest of the world has a lot of countries, new countries, raising their strength. if european union starts to decline with losing very important part of the union as scotland tomorrow and the uk in 2017. it would be a real problem for the future of our european integration. >> do you think if we see the independence campaign win here, we see a new independent scotland, that could give inspiration to other independent governments in europe as well? >> of course. it would be the way to strengthen other independent movement. we are -- we have some of the discussion following what was going on in scotland. of course, there's the prob

>> the europeans are slight favorites. but everyone said do not underestimate the americans and we're seeing that already. i do think it's going to be 2-2 by the end of the four ball. down to one point between the sides. i think it will probably be the same this time. if you really want a prediction, i will say that europe will win because they're on home soil. >> you just wrapped in time. thank you very much. stay with us because we'll have more on the golf with aaron later on. stay here on "bbc world news." ♪ [ female announcer ] we love our smartphones. and now telcos using hp big data solutions are feeling the love, too. by offering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. imagine what they can do for yours. ♪ eenie. meenie. miney. go. more adventures await in the seven-passenger lexus gx. see your lexus deal

it is up to the european commission to violate them. my concern is that europe or remain credible, and that means sticking to the agreements we have made, namely the debility and growth pact. >> both sides want to avoid a public argument about economic policy. reform plus growth versus hard-core austerity. a slugging match between the eu's two biggest economies would probably do more harm than good. >> which way forward will it be? our correspondent from the studio in berlin, teri martin, joins us now. what is the sentiment in berlin about france? is their willingness to continue accepting france's violation of the debt level? >> we get a taste of that here in berlin during the press conference. the chancellor was asked if she agreed with the twisting of the rules. she said it was not up to germany to judge france how well or poorly it is implementing its reforms. that is the job of the european commission specifically. the message they're being, we don't have to judge you. that is what we have the commission for. her second point was a

european farmers already demanding compensation polish workers dumped several tons of peppers. parliament building in brussels they're getting support from some politicians who believe sanctions were a big mistake. as bush does was different sanctions than the trade war i know means to improve the situation on the country we have a spiral of exclusion that hurts the german and european economies many people are check to the sanctions trite from the start they have a right to feeling that this is not due to achieving. sanctions or always prove that the political means failed they're useless and they are harming the population sanctions always lead to losses on both sides you can already see the backlash from the sanctions but in the next couple of months it will be even more obvious you know what i'm talking. from the beginning it was the wrong approach because sanctions escalated the situation and did not ease the tensions it was clear when the imposed sanctions that there would be a counter reaction and the stakes would be raised and now because of that a lot of entrepreneurs

they european union. still expected to grow more than 3%.shekel has been harming the israeli economy. tourism the biggest casualty. the tourism industry reckons the conflict will hit them at the tune of half a billion dollars. >> a lot of attention on the decision to appropriate more land. >> this is land in the west bank between settlements and jerusalem. to make the two areas contagious. although it is in the west bank this area would likely be included in any permanent agreement. given that they forged a cease-fire and given the poor relations between israel and the palestinians it is likely to exacerbate things. the economy minister said the appropriation of this land is punishment for the kidnapping and murder of three israeli teenagers which happened a short while before the conflict. >> tech security flaws laid bare. we take a look at the investigation into the hacking behind the release of photos of celebrities. ♪ >> welcome back. the time is 7:44 a.m. >> apples icloud service was hacked to steal nude photos of celebrities including

more action happening in european markets. european markets are very strong.they opened slightly positive at the start of the day, as you can see. this announcement came, then markets dropped back slightly half an hour later as president putin spokesperson came out and said it was not his place to agree to a size fear and one had not been agreed. now it's settled, but still in a positive area. both presidents mentioned a cease-fire, but they did not confirm it. the as we look at the individual markets here, you can see how strong they are. let's focus on germany in particular, up 1.2% at the moment. it has not up as much as 1.8% earlier when we thought that cease-fire had been announced approximately moving on from the european markets, we'll have a look at the russian market, the micex index, up 2.7%. again, it had been stronger earlier. and it's interesting to look at carlsberg, up 3.378%. carlsberg, exposure to that region. moving on to forex, the euro/dollar has stremngthened. a lot of volatility during the day and the pound earlier strengthened after its

and european markets. >> let's get a few from the trading floor wall street. can you give us a flavor of the ali baba buying frenzy? >> things now in afternoon trading have calmed down a little bit. on the trading floor, everything is pretty much back to normal, but a couple hours ago, it was a circus here. traders were working for more than two hours. we have heard it before. the opening price of the ipo, priced at $60, but of course stocks were never available at that level. the stock opened at $92 and shut off quickly to a high of $99 70 cents, just $.30 away from $100. and while the stock was not able to hold that mark, it is trading relatively stable between $90 and $92. we have it at $91.69, which is up 35%. jack ma, the ceo, left the trading floor with a big smile, because his net worth obviously climbed immensely. today his net worth is just about $20 billion. >> let's talk about jack ma and ali baba for a second. is this a one-off, or will we see more of this in china for all growing tech sect or? >> certainly we will see more. this was not the first

eufn, based etf owns european banks. small caps. >> the show's over in 20 minutes. >> oent got 20 minutes, big boy. >> a press conference. >> dirt cheap way to get involved in european small caps and the way investors should be thinking. not the timing but the most bang for your buck. >> pete? >> to josh's point, want point i disagree with david in this thesis, if the finances work for the european banks, mentioned credit suisse and a few others to josh's point, i think it's citi. our banks with the most bang for the buck. they will lag, the european banks will lag and that's why you want to be -- the u.s., said it time and time again. this is the best time to invest. a choice between europe and the u.s., you always go with the u.s. >> europe's not that cheap. the indices, you have to, basically at parody with the u.s. in terms of pe. stay with the u.s. >> you agree, joe? >> i agree with pete who agreed with me. >> with josh. >> come on, now. >> u.s. >> u.s. >> stay with it. >> u.s. >> you saw my notes. >> you're awe lll

googles european headache, we will talk about that as well. two.re back in ♪ >> we stream on everything. we are looking at the markets. the story is a simple one. they come out and unexpectedly announce a $4 billion share back. the stock times higher. is the stocks. let's talk about politics. the european union approved a on russia.sanctions only to postpone it. they will hold them for a few days. a cease-fire by both sides carry on fighting. there is only one man to explain the situation. >> the european union has always said it is possible they might introduce sanctions and immediately suspend them. when you look at the way this actually happened, the fact that the sanctions were agreed on last nightnd even there was a meeting of eu ambassadors suggest disagreement , we know that one of the countries that disagreed with the idea of the cease-fire is finland. very concerned about the prospect of counter sanctions, retaliatory action from the kremlin. finland owns 56% of sin air. 50% -- was one -- owns 56% of finnair. finland was one of the bi