mark carney will present the inflation report.ring you that live and in fall on bloomberg. ♪ >> welcome to "the pulse." let's get some company news. costello needs to focus his message on how the company has built its digital advertising business. he is under fire after investors question the slowing advertising growth. nine-month sales of nearly 500 million euros for moncler. they are looking to expand their brand and retail channel. ferrari is being spun off to raise capital for an innovation business plan. the ceo is not planning how much it will raise. >> anytime i tell you about value today, it is going to change. the conversation with most of the bankers who are talking to us, the one thing i know for sure is that we are going to get a lot. the best thing for sure is just going to wait -- is to wait until we go public. >> let's see where the pound is racing ahead today. sterling is very much in business in advance of the quarterly inflation report from the bank of england. we had data a little while ago. we are starting to s

mark carney marvin the anniversary with a downbeat assessment in the year ahead. ♪ >> hello and welcomeo "countdown." i am mark barton. >> i am anna edwards. >> and i am manus cranny. >> 20 of news on the banking sector. the regulator in the u.s. the first to break its cover on this given the details of who they are going to be finding. they have ordered five banks to pay more than $1.4 billion in an fx probe. citibank, hsbc, jpmorgan, rbs, and ubs will pay a fine. not said anything about any conversation they may or may not have had with barclays on this. the banks have said they will cease and desist for further violations, according to the cftc. some fx traders and banks court knitted -- coordinated their trading with others. banks failed to assess risk with cftc is goingthe into detail and word from the u.k. as well. >> we have got to figure -- the figure is 1.1 billion pounds. before the release a few minutes ago, analysts said that the six , barclays, citigroup, hsbc, royal bank of scotland, ubs, barclays has not been mentioned today. that the fines would total 1.5 billion. if it

speakers include janet yellen, mark carney and kuroda. let's bring in our chief economics correspondent on the ground. simon, we talk a lot about divergence. how much our people worried about this on the ground? >> they are very much worried. former el-erian, the chief executive of pimco, talking to the conference moments ago and talking about this divergence. it is a big issue for the financial markets next year. we are seeing signs of that divergence within the last 24 hours. just last week, the fed pulling back and ending quantitative easing. divergence, a big theme of today. >> who should be the most worried in all of this? >> europe is a big factor. also, kuroda is here. the bank of japan surprising markets last week. have beenntral banks pointed in the same direction and now they are starting to move away. this is going to be a real challenge for investors next year to work out where the money is coming from. >> i am looking through where we are expecting today. we have mark carney at the moment, we have the boj governor speaking, w

louis region better for everyone. >> the bank of england governor mark carney will be speaking in the next hour. he will give testimony on the quarterly inflation report in which the bank of england lowered forecast for growth and inflation. we'll bring you carney's remarks live when they happen. >> also pope francis will deliver a speech and address unemployment and immigration. in a meeting with bishops last month, the pope alluded to rising unemployment as a big issue and described the continent as wounded. >> coming up, we'll meet the man and the robot behind this revolutionary gaming technology. >> we're looking forward to that. that's what they look like. the studio is being controlled by its inventor. why this could be one of the great gadgets for christmas. everything goes to your smart phone but robotics one of the top stories we're watching here. we'll talk about that on the program. we have some great packages to show you as well. we'll see you in a moment. ♪ >> french manufacturing and business confidence numbers both beat estimates. we're counting down until thursday when

mark carney will be giving a testimony later is anti-? -- isn't he?what he will be the girl about is the foreign exchange some will tape that testimony live at around 10:10 and later this morning it will be interesting to see how much of the focus it is and how he gets out of it because the bank of england also has that under supervision. >> because he is supposed to be there with the association of the quarterly inflation report? >> he will talk about the u.k. and growth and what we are expecting is him to try to field questions about it which has an going on for more than a year which bloomberg news initially broke. >> talking about delivering speeches or at least appearing in public the pope is going to beginning a key speech today. >> we are excited about this because we think about the pope its pope francis and he talks about wealth and the sharing of wealth and the catholics around the world and this is the first time he gives a public speech about europe so we are expecting de, andspeak to jean clau quite a few of the euro leaders showing up. e

we'll be hearing from mark carney as he addresses the parliament on his latest inflation report. the xetra dax up about 71 points after we did get that read on gdp. it was able to ward aef recessi recession. markets see that as a positive. france up in the green about 15 points or 0.the%. italy, a gain of 143 point in today's trade. now, focusing on top stocks in today's hour, home improvement retailer kingfisher posted an 1 1.8% decline in third quarter profit hurt by a tough french market and foreign currency movements, sending the stock near the bottom of the stoxx 600 for one of the underperformers. take a look, down about 3.1% in today's trade. bp billiton lower 1.1%. and then there's petrofac, extending losses after slumping 26% yesterday on a profit warning. the oil and gas infrastructure from net profit in 2014 will come in at the bottom of its range due to lower oil prices and project delays. and then there's lvmh. shareholders are set to approve the redistribution of shares at a shareholder meeting later today. let's talk a little bit more about that story and bring in

mark carney is giving his outlook forecast for 2015. growth will be 279% down from 3.1% a month ago and 2016 will be 12.6% down from 2.8% last month. the bank of england governor mark carney now. >> based by british households and businesses is just one example. fixed mortgage rates have fallen to record lows. in this report, the mpc projects growth of 357% this year, 2.9% next year and 2.6% for each of the following two years. there's three factors that can explain why the uk can continue to grow at above-trend rates in the face of world demand. first, take home pay growth is in prospect. 700,000 new jobs have been created in the last year. and confidence is returning to the labor market. we are seeing the first tentative signs of the long awaited signs. incomes will be further supported by lower energy food and other import prices. oil prices are 20% lower on the year. food price inflation is at a 12-year low. the mpc expects annual real pay growth to pick up from around zero at present to about 2% by the end of next year. the second

those risks have been highlighted by mark carney in and -- mark carney. carney says the u.k. huge deflationary forces coming from trade partners, particularly europe. his remark comes days after the bank of england lowered its inflation forecast. bird fluke causing concern in england. up to 6000 birds could be cold at thefarm -- culled farm. there is also an outbreak south of amsterdam. the strainent said can be transmitted to humans by direct contact. ,> if you are catching a flight there is a chance your actions could be captured. shares in israel's biggest tech company are at an all-time high. good morning, elliott. >> i am pleased to say the ceo is joining us in his first ever tv interview. a great time for you. you have been on the job seven months. you had recent earnings that beat estimates. shares at a record high. you probably couldn't dream of being in this position. >> we are proud of third-quarter results. for us it is just the beginning. we are starting to see the result of the plans we put in place about a couple quarters ago, and we have seen improvement across

another central banker in the spotlight, mark carney. announce his leaving interest rates at a record low of 0.5% later today with the european economies worsening and brings recovery appearing to stop. urging significant monetary easing for the euro area at a time when the region's central bankers are increasingly divided. the oecd chief economist said monetary policy should not be the only focus. >> the biggest misstep is the combination of premature monetary tightening and also a reluctance to use the instrument of fiscal policy because of concerns over long-term debt trajectories. and in conjunction with those two, it would be a failure of using the opportunity to move forward on structural policies. all of that, let's check in on the markets with jonathan ferro. >> so many corporate earnings this morning, yet the macro pitch dominates the map you're seeing. much of the eurozone in the red. i am standing right on top of one third of 1% lower on the dax in frankfurt. the oecd predicting growth of 0.8% in euro zone. urging the ecb to d

-- mark carney.ve talked about what he has achieved. operations anded produce forward guidance. maybe he will focus on the meetings next rather than have a meeting at the beginning of each month. he should push it back to every six weeks. do you see that happening? is at the next push? >> it is quite possible. it is something that has been talked about. interesting that the fed from in the ecb is moving 12 meetings a year or 28 totings in 2015 -- a year eight meetings in 2015. that might be an appropriate time to move it. having said that, it is a financial crisis and you are quite happy at having a meeting every month. it is not to change policy and in between meetings, you have more emergency meetings which is not good news. i can see the argument on each way. >> what about the inflation report expected tomorrow on his he willy and maybe reference it. what type of forecast do you expect to see? downgrade inflation expectations? >> on growth, i do not think we have seen a big change. arguably, you a

mark carney has been talking about this. he's concerned about the rise of fixed pay. the best way of controlling behavior? should we be looking at bonus bonds? let us know. find us on twitter. ♪ >> you are watching "the pulse" in london. the currency markets. we've seen mixed data from around europe. the eurozone not so great. the u.k. a little bit better with the pound rallying off an earlier low on the back of retail sales numbers. we had a better print of the headline level. however, i would urge you to dig into the data and have a look more closely. the deflator within that. while we are seeing the top volume numbere looking ok. the reason that you are seeing that is because the deflator -- autumn.en a warm in the united states a warm fall. but it isticking up because people are having discounts to get the sales running again. now, let's stay in the u.k. for british bankers about the fate of their bonuses. one of the nine advocate generals backed the eu's move to cap bonuses. says it leads to continue awarding bankers that take risk. he says targeting fixed pay --

yes, as you put it, mark carney, the chairman of the financial stability board, today, in basel, switzerlandd rule for banks that would require them to maintain 20% of their risk-weighted assets in a total loss absorbing capacity. most of this, betty, would be equity, which is to say the first loss would be born by shareholders, but some of this, at least one-third, would be insubordinate that. that means under certain circumstances, bondholders would be required to shoulder the losses of banks that are in a default spiral. of course, this is all meant to make the financial system more safe and more sound, and limit l to zero, one would hope, that ultimately needs to be borne by taxpayers. >> erik schatzker, bottom line, how will this affect bank profit? >> bottom line, it will make it less profitable, some more than others. citibank may lose the equivalent of 3% of their money 16-modeled earnings according to research by citigroup. this rule is not set to be in force until 2019, but, of course, once it becomes finalized, the banks will have to start adjusting to it immediately, so it will h

mark carney -- of the rolling stones are playing in paris today.e on stage but no mario draghi p or he is pursuing other projects. you are as close to iraq's or as a presidential advisor can get her are we ending the post crisis period in central banking? we have a better idea of what for and guidance can't do. are we moving on to a new idea? >> in the u.s., we will hopefully normalize monetary policy. the ecb is moving in the upstate direction given the prob lems they are facing in their economy. >> in terms of understanding what you can do, what are the lessons we can draw from the last five years? >> just go back and look what ben bernanke did in two dozen 8, 2009, and the alphabet soup of new lending programs that help support the economy. alan, one of my most in portland moments was you three basements down giving a lecture on economic education p or you want to go microeconomics or let's go macro to the big picture of this meeting in paris. this is a chart that needs explanation. the white line is japan, the orange line is europe, and for tho

will mark carney be forced to reduce his overall growth forecast? decline inthe european exports from this country into the entire euro zone. they declined by 11% over the past year. the growth numbers that were assumed in august for england ecb will alsothe deliver data. you will also get the cpi numbers. 's challenge ishi to get the rest of europe to replicate what has happened in spain and the republic of ireland. jacques question the validity of that real change. you are looking at dramatically-higher unemployment rates. let's have a look at some of the companies. sinsbury's will deliver cost cuts. there seems to be a consensus that a rights issue has been ruled out. could they reduce their overall openings to try to reduce capital expenditure? carlsberg, no news is good news. there you go. they boosted market share in russia. that is good news. they did not reduce their overall outlook for the year. volume dropped 2%. reco, hsb has raised its offer for the animal feed maker. that is what they do. i-44 -- at 44 million off. dollar generally lowe

we've seen mark carney. they're all there and we will bring you any flashes from that meeting if and when they come. >>> let's get you a rundown of what to watch this trading day. aside from the u.s. nonfarm payrolls number, investors will be eyeing earnings from humana and berkshire hathaway. allen joins us now. let's talk about the market which hit a record high yesterday. interestingly enough, as you take a look at the internals of the market, it still continues to be the defensives. is that a concern that we're not seeing some of the growth sectors, like consumer discretionary that is leading this market higher? >> it is somewhat. it's been quite an exercise in psychology over the last couple of weeks. and the market has rebounded fully. if you take a difference in the sell-off, add it on to previous highs, you still have an upside potential of another 10% higher based on that measure. but the idu, the utilities that you talked about, that sector, that has moved up 11 1%, whereas the s&p has moved up 5%

governor mark carney's first -- 500 they an office in the bank of england.l produce in the quarterly inflation report. it will likely thwart market expectations and to remain on hold. comments from several policymakers in recent weeks suggest we will hear a significantly tone. regulators in the u.s., u.k. and banksrland fined five $3.3 billion to settle a probe. ubs will pay the most. hsbc were jpmorgan, also fined. will be discussed at a news conference of the top of the next hour. the bank of england's martin says the currency traders work sharing information about client orders. for more on the fx we are joined by liam. he led the bloomberg team that broke the story last year. let's sing her own praises. this was on the back of a story led by you. >> of this is correct. in june of last year, myself and a couple of colleagues wrote a story that highlighted this benchmark was used in the forex change market and is usually relevant for the valley of people's pensions around the world. it was being potentially gained by some of the traders of the world's bigg

what's interesting is a material spread of views in mark carney's bank which sugs more people are moving worried about inflation. royal mail warned that amazon's local delivery service in britain will cut services in half. greek stocks doing well again. look where we've traded at the greek market in the last few days. up now about 9%. we know we have a december 8 deadline for them to do a deal hopefully with the rest of europe and. there is clearly optimism in athens sending stocks higher. the last jean claude junker is working on a scheme for a 300 billion euro investment fund to be unveiled at the leader summit in the middle of december. there is a lot of discussion how that will be funded and what the multiple can be from the people put in and how much comes from the germans. the other thing is that he himself in the european parliament will next week face a vote of the --. it comes from the right. it comes from the antieuropeans. not a vote that is likely to succeed. >> when we come back in the latest quarter, which apple product logged an 18% increase in revenue year over year? this

.9%, isnd quarter was that as good -- mark carney yesterday once again concerned about the heightenedxternal risks. perspective, the external risks may be overdone. when you look at the strength of the u.s. final domestic demand yesterday and the fall and the oil price that we have seen you this weaknessegg we have seen and the eurozone impacting the u.k. because the eurozone has been week for the last two sure years in the eurozone -- and the u.k. has grown very fast. my main concern is the housing market slowdown so i do think we have seen the peak but i would not labor the external story too much. interesting because the housing market -- although the bank of england met last minute mention the slowdown i think your takeaway was that they seemed quite relaxed. >> i think that's correct, they mention the fact that the housing investment might call but they don't really talk much about the impact this might have on consumers in terms of their sentiment and in terms of buying goods and consumables and those things and those the things that would concern me. >> are those things that ar

carney, corona. is it a tragedy or perhaps even a farce? mark good to see you what is up for debate there among this group of rockstar central bankers? mentioning, we have all the heavy hitters except for mario draghi but he has other ecbers here. going inpolicy is different directions in different parts of the world, the bank of england is on hold, the bank of japan is going great guns to expand its balance sheet and the ecb says it is as well. with the biguation central banks going in opposite directions which should mean lots of market volatility and uncertainty. i think that today it is about debate and coordination. how is the ecb -- how is the handling of stimulus by the ecb -- how will that be viewed at this meeting? will they be criticized for not doing full-blown quantitative easing? >> it is very rare that central bankers -- central banking is an elite club and they -- i have -- very rarely seen them criticize their counterparts. as far as the ecb stimulus is concerned to let anyone who is been following these things, there has been a

i agree with my colleague mark carney from the bank of england.od to wear belt and suspenders to prevent your trousers from falling down. the flaws of the risk-based approach need to be addressed to methods.he it is hard to assess the probability of default for low default portfolios, which includes exposures to sovereigns. as the name suggests, their respective credit events are rare. to some extent, the calculation of regulatory thermometers for such low default portfolios falls under what is known as the turkey illusion. imagine you are a turkey. every day you are approached by eats you. what kind of mental model do you think you will build up? things giving is coming. -- thanksgiving is coming. [laughter] measures to reduce the leeway for banks using a rose thanks approach -- a rules-based include parameters for risk calculation and the exclusion of certain types from the model-based approach. efforts are underway to make the standardized approach more risk sensitive. thatould be noted weighted assets is not a problem per se. deviations are re

. >> bank of england governor mark carney inherited a bureaucratic numbering institution according tok's own internal survey. the bank employees used keywords like hierarchical and slow-moving. he hired them to do the first acts. the rebel held eastern region is illegal, merkel says. she said she sees no reason to lift economic sanctions against russia after hearing that they are amassing military vehicles in the region. >> oil prices continued to concerns.er over saudi arabia has reduced the cost of crude and the u.s. increasing supplies heading shale production. joining us now to discuss the oil market is our opec man, ryan chilcote. all the time.nd it's important for these members, isn't it? >> if you want to figure out where oil is going to go, you have to not just watch the actions that follow their movement. the oil minister is on his way island, venezuela. he will be there tomorrow. from there he will go on to mexico continuing his tour of nice resorts going to acapulco earlier. >> let's hope is not having any margaritas on the island. >> i don't think that will happen. he's a

mark carney indicated that interest-rate hikes may come later rather than sooner and that does it forionaire real estate developer, richard the is joining me. is joining me. plus, republican senator ryan johnson is joining me, the chair of the senate homeland security agenda. we will discuss that tomorrow starting at 8 a.m. eastern time, right here on "in the loop. --." ♪ >> it is 56 past the hour, meaning that bloomberg television is on the market. to stocks right now. after eking out a fifth straight day of record high closures, , the s&p 500 and the dow are pulling back. all of the english groups are down by utilities. over in europe banks are on their way down as regulators slapped fines on hsbc, rbs, and ubs. barclays is still holding out and saying they are not ready to settle yet. finally, things recovering a bit after hitting a seven-year low yesterday. credite delaying a sales -- sales tax increase. partiallys closed yesterday for veterans day, you can see the yield coming down. staying with bonds, the view has been a treasuries will fall into place once the fed raises intere

will it be similar to what mark carney told us last week? there's been a lot of concern around heightened conditions. market share has fallen to 28.7%. we're looking at the joint market share rising to 8.4% in 12 weeks in the coming november 9th. that is according to kantar. >> the reading the last time kantar figures were down, you can see they're down to 16.5% basically market share. and, again, you see the german discounters really press ahead. at the time, he's been brought on and they had that whole gap going on because they've given up their finance director early. >> at the same time, we're seeing wages and market share rise, right? >> that's exactly the trend we've been seeing. basically, the diversification of the retail market. on the one end, you've got the discounters who have done incredibly well. on the other hand, you have the top end of the market, people like -- have been storming ahead and that's the only place you're seeing growth. while in the last year you've seen hemorrhaging from tesco's market share, you've started to

the bank of england governor mark carney says inflation is on a downward trends over the next 12 months. we did see a tick up of wage inflation. now, we had debated the last couple of days, will mccafferty change his position and, in fact, vote for rates to stay on hold? sterling is at about 1.56. any other headlines, seema? >> it's argued will inflation due to stronger currency and cheaper commodities? the forecasted inflation will return to 2% target no sooner than 2017. that's among the comments there. >> there's slightly more evidence uk growth will slow more than expected. we'll get more on this now with turner. as it comes through, some thought it might move to 1 out of 9, br largely as expected. >> largely as spec'd. i think those two members voted to hike clean given the inflation problems coming at this in the he xh. we had a pretty strong wage report last week. as they felt the growth in the uk shift positive and is going to continue to move that weight, if core inflation does fall over the next 12 months but we keep wage inflation above that, that's positive for the uk econom

since mark carney's relatively dubbish statement last week. we are now above .28. we'll look at the euro just slipping a quarter percent at 1.24 against the dollar. the most interesting today has been the yen which initially fell to a fresh seven-year low of 117.6 but it bounced up to 116.8. we'll look at commodities with oil continuing its slide. the nymex is at $74 down 1.3%. brent is still below 80, 1.4% today. and the saudi arabia stock index is down 3% on the back of weaker oil prices. now, back to our top story with japan's price slip into recession. we have been following the asian market reaction from singapore and this report was filed. >> reporter: japanese ek wes getting dumped today with the market down by 3%. the biggest loss in three months as q3 data showed the economy slipped back into recession. so what the numbers are going to do is cement the case for the sales tax hike to be put on ice. it is clear to say that the japanese commerce cannot handle the higher tax burden. we saw money flowing into the safety of the jgb market and the japanese yen as