we will be bringing you the bank of england stability report from governor mark carney. stay right there. that's coming up. thanks. ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪ on thinto an entire tribe's studentseducation. to turn their education but only five percent of indians on the reservation can afford to go to college. >>> hi, everyone. welcome back. you're watching "worldwide exchange." the bank of governor mark carney is set to deliver the stress test results for uk banks. we'll be bringing you that as it's happening. it's just starting right now. we heard already the stress test results for the bank of england, all banks passed except for the co-op. we're looking at lloyd's pass, a ratio of 5.3%. rbs, very similar. is the standard chartered 8%. uk banks are in pretty good shape. >> they're not going bust and they're not at risk of going bust. that's the good news. the bad news is they're uninvestble businesses from our point of

it is decision day for mark carney.ation's budget in his on statement and put the chalice of the central bank to stimulate growth. what do you make of this? because of the autumn statement -- any heavy lifting to stimulate growth has to be done through the monetary policy challenge. >> that seems to be the case. that itinteresting is is clear how different it is from where things were expected to be four years ago. the economy is much stronger than anybody thought at the time it would be. -- what it said is that for the next four years, the chancellor's index chancellors will have to rely on a strong economy to bring public finances in order. but they cannot be relying on public finances to support growth. it is very much on the bank of england. >> the onus is on osborne to meet the deficit cutting targets. he is artie vowed to eliminate the deficit. do we believe it is credible he can eliminate the deficit within three years? -- he next track record has also created -- on the one hand, it looks like the chancellors hav

he wants the governor of the bank of england, mark carney. this is mr.man who has concluded his report am let's listen to what he thooze say. >> we've all come a long way from the never explained, never excused central banking. as you know, the past two decades have witnessed a regime change in the way central banks interface with the outside world. for the modern central bank, transparency is the watch word. the bank of england, like many of its peers around the world, finds itself giving considerable thought to the ways that explains itself to its parliament, the financial markets, and not least the citizens whose lives are affected by the poflse. the governor and his colleagues commissioned me to undertake an independent review of the transparency practices here at the bank. i was asked to consider the measure its and demerits of creating, retaining, and ultimately publishing transcripts of monthly m.p.c. meetings. the transcripts should not be the soul or perhaps even predominant measure of transparency. i was zod reflect more broad on the transparen

mark carney has made it clear he is staying put.ost important thing about what carney has said is not so much when the u.k. goes but who goes first. a lot of what he has said has been to push back on you kate rate hikes relative to the fed. six months ago, it was u.k. economy is all that matters. now, let's see what the fed does. >> he thinks we will get dragged from the eurozone. gilt this morning at the same level. is that a fair reaction of reality? >> it is not a fair reflection of reality in any world other than the one where interest rates will stay. bond yields in general are cheap. it is part of the game of financial repression, which we have been in four years and does not look like it's going to end anytime soon. >>gilt this morning at the same level. what do you do to your portfolio? enthusiastic.ess if you look at the short-term power for inflation, the cpi looks likely to go below one. that is pretty much a done deal. if you take five year breakeven rates, rpi is currently 2.3 and will probably go below 2. on a net net

mark carney talking about a stress test. maybe just rented through.will have a more. >> and you risk in the past 18 months -- and the risk in the past 18 months. if it will carry on. we had to move the press conference, we cannot hear what the governor is saying. we are working on a career we will take a break. we will see shortly. ♪ >> 22 minutes past the hour. you are watching "the pulse." >> one of our corporate news. bp has agreed to enter exclusive talks to buy a mobile company. for more on the keys return, caroline hyde. what is the price on this? >> 12.5 billion pounds. the biggest u.k. mobile operator in the you take. the venture they have built up ee is potentially going to the, --after talks -- the, --.com become bp after toast. building the biggest court player. able to sell the tv and broadband and landline. that's a positive move. we will see how this deal is structured and how we understand deutsche telekom and the entire company going forward. we will be able to appoint directors and get cash. and a gets even more cash 40% stake. an int

saysovernor mark carney this is a demanding test. core of theshow the bank is significantly more resilient. that's the point. one of them essentially failed. looking at a word it is the cooperative bank. mostnd lloyds has the exposure to the united kingdom in terms of housing. in these stress tests, that is the core of the issue. they were extreme in terms of the demise of house prices. a couple of things i want to bring to the viewers attention. rbs and lloyds have been raising capital. to a certain extent, they trumped what they were asked by the bank of england. in the body of the report, rbs and lloyds had a page per bank. they are susceptible to severe economic downturn. that's the essence of it. another question is standard chartered and hsbc. traded at 360.le i know the bank raised rates. the message from the bank is this. these things have been stress tested. extremee a buffer in an financial situation. that is good to know. >> let's continue that conversation. where does this leave the u.k. banks relative to their global ear

>> at a have a list, but mark carney should be on the nice list.ondon and is a great central banker. it comes up and again and again is that janet yellen has been so divisive. on their list,r naughty or nice. she is a touchstone for navigating the economy. >> the great online, how do you navigate through the great unwind? of years to couple play out. she is doing a great job in unchartered territory. >> robert kaplan, the one word you could give to the 500 ceos who are watching for 2015, the word is? >> tone at the top. kaplan, says that hope. coming up next -- says the pope. coming up next, "in the loop." "bloomberg surveillance," last show of the year. we will see you in january. ♪ good morning. it is wednesday, december 24. you are "in the loop." i am olivia sterns, in for betty liu could the day after the doubt is about 18,000 for the first time ever. we are going to parse through the wow gdp revision we saw yesterday with a bloomberg view columnist and former ceo of pimco, mohamed el-erian. will janet yellen become a what itess patient, and me

mark carney is just on the verge of having to write a letter to the finance minister to explain how thatnd the bank of england ran the stress test. run failed. these just slipped through. in the meantime the big event is clearly the first vote in greece. we'll get the results midday tomorrow first of three about whether they can get a president through the parliament. and if they can't do it by december 29, there is a snap general election. if there is going to be a snap election and you get qe from the ecb, j.p. morgan believes january 22nd, could they buy greek debt. that is a risk, that is a red flag that they may not be able to take. back to you. >> well this week two projects face off. we're letting you decide which campaign should take that title. dragon fly combines smart cell phones, laptops and tablets into one device. and because it acts as three devices users only need one data plan. the campaign's goal, 10,000 dollars. so far it's raised nearly 600,000. kairos t band. the band is interchangeable giving users access to most smart phone features on their analog watches. who sho

his statement this week and it seems to be leaving some of the heavy lifting on the economy to mark carney and the bank of england. let's bring in our guest, dartmouth college professor of economics. wages crucial in the u.s. conversation, crucial to the u.k.. >> we have had numbers in the last 10 days or so which suggests that the earnings we have a this point have been severely upward buyers. it appears earnings in small forms are much less than we thought. there is fertile evidence of wage growth, particularly the national statistic. the evidence appears to be that their real earnings are vomiting. they have very very low rages. real wages are down, they are down about 10%. that we havehing an expected. going forward, how do you restore these peoples standards of living? little or nothing to say that will happen. >> a productivity puzzle. >> it is a really big puzzle. essentially, the forecasters are assuming it gets sold. we don't get told how it gets sold. growth inbig employment and relatively little growth in output, so the output for had hasn't moved. it per capita is below where w

the bank off england, mark carney, revealed he will make the bank's making more transparent.ordings ofoys monetary policy committee meetings which decide interest rate. that practice could come to an end after a review. they will present their findings at a news conference at 10:00 london time. >> lets get to hong kong with the democracy protests have blocked the street and divided the city for more than two months. they let's supported by police have moved into the last remaining campaign site. we are joined now live from hong kong with the details. what is going on? this morning, the action was taken -- the court injunction undertaken by people authorized by the company that was granted the injunction. they didn't need to get involved in clearing the barriers because the people who authorized it did it themselves. is thathappening now the injunction area has been cleared and we are moving on to the main focus, which is not covered by the injunction. this is where the police come in. the police are moving in just from across the hill, that is the flyover you can see there. a

mark carney says rate rises will be slow and they will peak below the historical levels -- 4% is way above the intimation of interest rates and finally it factors in unemployment rising to 12%. u.k. guilty of hitting 6% -- lenders must maintain a core tier one capital and that is blowing your head off. bankimply, that measures a 's holding at the highest quality measures of capital. >> you make it sound stressful but i know some of the guest's we have don't think it is stressful enough -- some people say that 4% interest rate by the end of 2015 -- might not be the projected path. talking about which banks will do well and badly, the bank has already said it will come as no surprise if they do not meet the desired capital ratio. as we saw a failure of the co-op that perhaps will not come as a big surprise. it has a recapitalization plan in discussion and so certainly that will not be an enormous surprise. lloyd banking group says they are confident the bank will pass the stress test. what will it do to the dividend paying prospects of the bank? that will be a key thing investors are l

. >> mark carney came out today saying he is concerned about contagion in emerging markets. issues that are affecting emerging markets. you have venezuela bonds in a freefall right now stop russian bonds, clearly in the fall as well. -- in a freefall as well. right now, people are watching this saying, how much will this be a contagion effect? and what about places like mexico that have been a favorite of a lot of traders that are getting affected? bonds are also affected by the free llinoil pres. >> -- mexican bonds are also affected by the free falling oil prices. >> how much of a comparison do we have 21988? some -- do we have to 1988? there is more groundwork to be more stable, at least in the short term. true,k that is probably but there are other factors that probably also make it different, but not for good reasons. all eyes are on the fed about what they will do. tomorrow when he comes out and give their announcement, -- when they come out and give their announcement, people will wonder if they are removing their considerable timeframe language, or hydrates -- hike r

not drastically lower and, of course, sort of as expected following comments we've had out of mark carney and other uk officials over the last few weeks. sterling/dollar is basically flat on the day. >> and we've been putting a lot of focus on the auto sector. mercedes group, november car sales up by 11%. reporting that from january to november, global sales were up 11% at 1.6 million and that november sales up 23% year of year. so some better than expected numbers from mercedes bends. of course, the auto sector in general has been performing well over the past couple of months, helping the german markets move higher. on that note, take a look at european markets because it was a volatile trade yesterday as the markets tried to interpret what exactly mario draghi was trying to do around sovereign bond buying. right now, we're looking at stocks trading higher. german industrial orders coming in higher than expected. >> there were mixed signals on the health of the german economy so far today. industrial orderses jumped, competing expectations for a rise. in the last few hours, the german c

. >> boe governor mark carney said on tuesday that the fall in oil prices was a, quote, unambiguouslyositive for the uk economy. do you agree with that? >> from an activity perspective, yes, i think that's the case. generally speaking, the fall in the oil price will be positive for net oil consumers and negative for net oil producers and from that perspective, it will generally tend to support activity going forward from here. as i say, the impact on prices, back into inflation expectations and lower wage growth will likely be fairley transitory. so i think the longer term implications are positive for the year, yes, indeed. >>> take a look at the unemployment number coming in at 6%. a drop in 63,000 jobs in the month of october. but yet wage growth continues to be a source of concern for investors. when do you think we'll see a meaningful increase in wage growth, adam? >> well, if we're going to, it will come through at the period where the greatest concentration of wage and that is typically in january. then again in april at the beginning respectively of the calendar year and the f

let's thank annie carney as well as mark claxton. >>> coming up thoughts and prayers are going out to the families of flight 8501's passengers and crew. we'll bring you the social media reaction to the minutesing airasia plane. ring ring! progresso! i can't believe i'm eating bacon and rich creamy cheese before my sister's wedding well it's only 100 calories, so you'll be ready for that dress uh-huh... you don't love the dress? i love my sister... 40 flavors. 100 calories or less. >>> it's time for "we the tweeple" and today we start with missing airasia flight 8501. you're commending the ceo of airasia, tony fernandez, for using twitter to keep us informed. late last night he tweeted, keeping positive and staying strong. my heart bleeds for all the relatives of my crew and our passengers. nothing is more important to us. meanwhile, you've been debating what defined america in five words. thousands are posting on the #americainfivewords and some are sending tweets like this. you don't love america, leave. this user tweeted, america in five words? yeah, we're still pretty racist. inste