i say "we" because we are a part of the u.k. santander always does well in the u.k.be competitive with other centers and at the moment i do not think it is. francine: are european banks in general at a disadvantage because we are that far behind in getting our act together? ana: no, all the changes the u.k. has done most of them. continental europe, the rest of europe is sort of in the process. this has a cost, and so qe needs banks that can transmit qe to the economy so we can make loans and give you a mortgage and fund a startup. because regulation has still not been implemented in many aspects. i think i was told in brussels a few days ago there is still 300 pending pieces of legislation in banks. i heard the number 400. let's say it is between 300 and 400. this means banks will be holding back a bit, even though we are increasing lending. for example, we are increasing lending in spain right now, but i think there is a drag effect because of this uncertainty and because this regulation is still in the process of being implemented. francine: you mentioned the u.s.

ana: well, when i was in the u.k.e were probably one of the worst, if not the worst bank in the u.k. in terms of service and since then we are ranked pretty much at the top. and that is very, very important. but also we have, i think, come up with a strategy that customers like, so we have been the biggest beneficiary of the switching service. we are very much a challenge -- challenger bank. i would like to say this. we are a scale challenger, but we are bringing competition to the u.k. i believe that it is a product that pays interest, gives you cash back, and delivers a great digital experience, for example. i think that is what u.k. customers are valuing. francine: so that is what you want to be and push forward. at a time when a lot of european banks are chasing this elusive, high net worth individual, that is not what you want? ana: of course i want that. francine: as well? ana: we want to do high-end retail and commercial banking for the affluent. the majority of the customers in the u.k. are affluent that are c

in the u.k. started after the recovery in u.s.. you're catching up. we are now a place where we are more or less at level pay in terms of the cute little growth. we may have a little more flexibility than markets in the u.s. because more people have stable jobs in the u.s.. but we are informed by with happening in the u.s.. we will take our decisions based on what's right for england. >> kinesis only about inflation? not just in the u.k. that all around the west. people are struggling with the same thing inflation is very low. is there something about modern economies that is suppressing inflation? do any to start rethinking the language? >> i think what has happened is we had a very severe shock. once a global demands as you know and that's multifaceted, the other has been that -- in part because of financial crisis and in part of the broader factors. the equilibrium interest rates -- interest rates that are consistent's with the inflation at progressively fallen over the years. aggressively so

and u.k. officials are focused on the idea of a bomb that brought down a jetliner in egypt, possibly with the help of an insider. hasbritish government suspended indefinitely all flights to the state. manus: facebook has posted quarter of estimate-beating revenues after stepping up mobile advertising. the world's biggest social network reported third-quarter sales of $4.5 million. shares hit a new record high in extended trading. francine: profits at french banks have risen. the bank says thousands of jobs would go as part of a restructuring. the first that of our transformation program is job cuts. [indiscernible] manus: next up on "the pulse," central-bank misguidance. we look at why 2015 has been such a rough year for the analysts and economists as they attempt to predict the rate moves. ♪ francine: welcome back to "the pulse." we are live on bloomberg tv and radio. let's call it central-bank misguidance. it's been a rough year for analysts and economists as they try to forecast interest ra

we're creating jobs in the u.k. and similarly as far as u.k. is concerned the likes of jcb, et cetera, have significant aspirations in india and they're looking to grow their business so even within the g-20 nations the u.k. is the largest contributor of foreign direct investment into india so both sides it would be mutually beneficial to try and build on this relationship. >> and also we're talking a lot about business and trade deals and that's all fine but what about the cultural aspect? the u.k. is home to one of the largest ones outside of india. it makes sense, this historical relationship the two have. >> 60,000 expected on friday. >> what are they going to do? >> i believe that's 250 dancers. 50 singers. there's going to be a bunch of other performances lined up and as prime minister cameron said he would be a miracle for him to be able to pull off 60,000 people at wimbley but you have the modi buses rolling through london and there's been a lot of talk about whether it will be a dampener. i don't see that happening. there's enthusiasm

somehow apply it to u.k. citizens at the same time that you applied to people coming from other eu countries. the idea here is to avoid treaty changes if at all possible. it is going to be in the details to see if that is possible or not. everyone will way get together to be able to really talk about this and we will see how it shapes up in terms of that. guy: we've talked about some of the more difficult elements. how much of this is easy? there is a lot made in london and the u.k. of this ever closer union idea. give us a sense of how easy that is going to be to circle navigates -- to circumnavigate. is their language in brussels where they will make it a little more palatable? how easy are some of the other bits to fix? jones: i don't think any of them are easy. the whole idea of the eu, since its inception, is to grow closer together, to have more coordination, cooperation, more binding rules that apply to all of the members of the eu. this pullback that cameron is trying to negotiate is something that is

the u.k. is much more exposed, as you know to europe and united states. if you look at u.k.rowth, our forecast is gone down about three quarters of a percentage points over two years. principally because of emerging markets. you see the chinese economy and .ur best efforts ,> when you said best estimates the prospect of banks inside china, how much do you worry about the bad stuff there is from the chinese banks? >> i think that anytime you have a very sharp increase in credit, credit growth as you had in china. some pointect at there will be -- we have not yet seen that. creditrease in private -- and china has doubled more than two times over the past five years. , just toonomy slows put a figure on that, chinese nominal growth was about 20% after the immediate aftermath of the crisis. it slowed just about 6%. one would expect there would be .n increase the issue is they have to actually start not performing. it is more perspectives than actual. i would not -- the chinese banks have a strong capital position -- can't take appropriate actions. there is a process of adjustmen

and the u.k.long-term unemployment at the structural then you dot 5%, feel that pressure is there to lift rates. anna: thank you. everyone, no doubt, knows a man very interested. he is about to join us on the , i'm surethan ferro you are all about the jobs today. jonathan: that is a good gas. it is the penultimate jobs report before the final federal reserve meeting. does it need to be good enough to give janet yellen the conviction to rise rates, or bad enough to stop her? we also have more on the exclusive interview with mark carney. when he is flying so low, that is a different person from the press conference mark carney. we will discuss that, and the german industrial data. brilliant guests to talk with. bonds, bonds, bonds, what more do we need? anna: thank you, very much. jonathan will be back at the top of the hour with the "on the move" team. that will do it for "countdown." flattenxpecting to see at the start of trade. you can see where it says eurostoxx. nothing to get too excited about

the u.k. is more exposed to your -- europe, so it is slightly derivative exposure to emerging markets. we took down the medium-term outlook to an extent it has an impact on the forecast. if you look at u.k. weighted growth, our forecast has gone down by about three or four quarters of a percentage point. that is lowering demand for u.k. products, principally because of emerging markets. we see the chinese economy rate of growth slowing to about 6%. china is at the center of this. but this is not just a china story. >> when you say best estimate, he said before about china's numbers being murky. he said the prospect of banks -- how much to worry about how much bad stuff there is on the balance sheets of chinese banks? >> i think anytime you have had a sharp increase in credit growth as you have in china and non-japan asia, one can expect there will be an uptick in nonperforming loans. we have not yet seen that. the increase in private credit, the increase in aggregate credit in china has double

and u.k. what has happened in the last several years has been that because of the repair of the financial system, because of pay down by households of debt, because of some repair on the physical side in those economies, those equilibrium interest rates have been gradually increasing. and we are getting more traction with monetary policy. that is the good news. if you are a relatively small or a medium-sized open economy like the u.k., you face more of a headwind from abroad because of global disinflationary pressures. in relative terms, we import more global disinflation. it matters more for our ability to hit our inflation target than it does in the u.s. which is relatively closed. we are weighing those countervailing forces related to domestic strength, i would say a robust private sector. >> does core inflation matter more? is that the thing you look at? >> my personal view is that it is important we look at it, particularly because of this imported disinflation. it shows up through core i

in the u.k.ant to leave you with the impression that leaving europe would mean siemens exits the u.k. -- that is not true at all. this is an important market for us and we will continue to serve this market. but it would make it more difficult outside the eu. anna: how do you think we will keep the arguments positive? voices that are very pro-eu could be tempted to warn about the threats that could arise if britain leaves the european union. you clearly believe that the debate needs to remain positive, so how is that achieved? >> let me give you an example of that, which is reform in terms of regulation. i think regulation is a very misunderstood area. in the u.k. we seem to have picked up a lot of hysteria about all of this regulation being terrible and shocking, and it all makes things difficult. don't misunderstand, i'm not a lover of regulation. nobody really likes it. ingrown auth is, business, you just need to regulate things. therefore i think the positive look, should be about, regulation

up, a huge moment for the u.k. what the indian prime current calls the negotiations between the two countries. ♪ manus: and just prime minister -- and he is prime minister is that david cameron's residence today. modi ish to use -- mr. on his first official trip to the u.k. pointed to the close ties between the two nations. nejra cehic has the details. nejra good to have -- nejra, good to see you. nejra: we are talking about 9 billion pounds. --king billion dollars deal $13 billion deal across the industries. not a bad number four modi's first visit to the u.k.. in terms of the deal with india, they are supposed to safeguard or create 2000 u.k. jobs. one of the key once is vodafone investing 1.3 again pounds in india. that seems like a five-year partnership. agreement on nuclear power plants and a deal to allow rupee -- they focused on the ties between the u.k. and india. the u.k. is the biggest investor in india. india is the third against foreign investor in the u.k. after the u.s. and france. thanvests more in t

these are builders in the u.k.he headline we are expecting is that he's going to encourage the building of 400,000 homes, helped change the rules on help to buy and encourage developers. economist, this country is so dependent on housing, isn't it? >> yes. 100%. manus: the chancellor is going to go down in history as possibly the biggest bubble creator in the world. >> i wouldn't call him a bubble creator. the u.k. has a chronic supply issue. the mistake with help to buy was that they had a demand solution to a supply issue. there is a supply side issue to deal with. from a purely political this -- political perspective, steadily raising house prices is a good thing. it drives the wealth effect. to maximize those benefits, you need as many people as possible to have houses. the problem is, we have structural issues with the housing market which limit the ability to draw supply. these big demand-side stimulus programs -- the target of 400,000 is what we are hearing. is there a great deal of promises and under delive

we hear from the u.k. prime minister this hour as he tries to balance domestic and european demands to avoid a brexit. lonmin its shareholders for more than $400 million in a cash fall to stop rallies. of very warm welcome, this is "the pulse," live from london. i'm manus cranny. have a look at lonmin shares. they revealed they are hoping to tap up shareholders for $400 million in a rights issue. stocks are up as the south african miner sides value fall by more than 50% over the last month. let's go live to johannesburg. we have our bloomberg metal and michael reporter, -- metal an d miner reporter. this is a substantial cash ball to say at least. andre: good morning. yes. it is good news, and something that has been worrying the market for a while. basis?nmin find the good news as far as they are concerned is that they have found three parties to underwrite it. from that perspective they are safe for now. however for current shareholders, this rights issue will come at a 94% discount. if you are currently

than the u.k.? the u.k. is .5%. joe: we have a much lower labor force participation rate here.k: i'm going to focus on the ftse 100. since august half and the ftse has been stuck in a trading range in the last month. in 2015, it's one of the worst performing western european stock markets and it's all down to composition. the worst-performing stocks are energy and mining companies. they account for about 1/5 of the index. why the ftse is underperforming its peers and the s&p 500. what's interesting is if you want to make money in the u.k., forget the ftse and look at the ftse 2k. it's more focused on the domestic economy guys. if you are falling out of love the ftse, the ftse 250 is outshining it because it is domestic focus which comes to unemployment, wages and slack in the economy. betty: basically the headline number, you have to look at the details. that reminds me of the u.s. where more domestic focused industries are doing better than the ones with global exposure. the ftse 250 has outperformed in a seven of the last 10 years. it is definitely the place to put money. mar

guy: should the u.k.future with european partners or its future trading with india, china? mr. sorrell: you have to do both. is patent and trade -- it 50% of our trade, going with the major investments. if the question is do i favor andit, the answer is now, i'm prepared to say that despite some people not wanting to say anything about this. this is a personal view -- it is not a view i would impose on the people at,00-0 wpp. the problem for us is that our brick trade is strong. we may be the third-largest investor, but the fact of the matter is that the patents trade is not strong enough. when we go on these trade missions, it is a little bit pathetic because we haven't developed the trade as he should have, not like the americans, not like the germans, who has been very aggressive in those markets. anna: let's continuous conversation. he stays with us. and let's turn to the question of brexit, because the european union president has spoken on a list of events from britain on eu membership. they say it

in response, the u.k.nificantly better employment performance and all other major industrial economies, except germany, perhaps. the u.k. is now at the stage where the quality of jobs is getting better. initially in the upswing, the low-quality jobs are being created first. the quality of the jobs is getting better. the wages are getting better. it all actually means the bank of england should raise rates at roughly the time of the u.s. fed. francine: that is another conversation. we will get to that. jamie, thank you so much. holger stays with us. coming up in the next hour, we will speak with willem butler. one of the big thinkers when it comes to the fed and jobs and the economy in the u.k. ♪ i cannot convey even to eosityne lacqua the gorg of the end of october in new york city. we'll must hit 70-something in new york yesterday. 70-something in new york yesterday. we need to go to francine lacqua with the morning must-read. francine: it means nothing to me. you have to speak celsius. tom: vonnie, help

>> reporter: there maybe a whole host of things that the u.k. does. u.k. has a very diversified and flexible military. of course on a diplomatic level, they can be a major player in the vienna talks led by john kerry. on the military level, they do have certain expertise in flying and identifying targets. all the thing that go into these attacks, that certainly would be enormously beneficial to the americans and to the french. hollande today, asked the british to join the coalition in attacking syria's isis capital and other bases. i think it's a no brainer. we'll have to see what happens next week with the both. the scottish nationals appears to be against this. therefore, cameron needs some labor and peace to join him. that remains to be seen. how the labor party will work this. we'll have to stay tuned. i think it's pretty clear that cameron will not call a vote unless he's pretty sure he's going to win the vote. he doesn't want -- >> final question we've been hearing today about strikes having incremental effect as opposed to a strong effect that's str

>> the u.k. says with a bomb planted on board could have brought down the russian passenger plane in egypt. the u.k. suspends flights to sharm el sheikh. >> hello, also on the program, egypt's president is here in the u.k. but there are questions about his poor human rights record. >>> the highway that divides the city of aleppo. >>> plus... >> i'm tan in a page reporting from the ivory coast on the increasing number of children being forced to work in the cocoa industry. >> u.s. and european intelligence suggests that a bomb was planted on board of the plane that crashed above egypt. they have suspended all flights between the u.k. and egyptian resort and said it won't resume until the investigation is complete. all 224 people on board were killed when the russian operated airbus came down. neave barker reports from lond london. >> investigators are scouring the area where the flight came down and where 224 people were killed. it's a difficult task with wreckage strewn across a large area. there

an update on the u.k.et -- nationwide reports that the housing market missed estimates for a monthly and yearly basis. it came in at .1% versus .5% in october. for more on these stories and others, had to bloomberg.com. anna: you have been looking at u.k. housing data -- let's get more on that. nejra: i have a nationwide report. it missed estimates for house prices earned for november, but also for the year so prices rose not .1% -- rose .1%. the u.k. operation also showed a bit of a dip in u.k. house prices in november. this tends to be a seasonal thing in the u.k. where you get fewer people looking for homes ahead of the christmas period. much ofd scene is very growth in the u.s. housing market, and a lot of people are flagging this as a concern in terms of the lack of supply in the market. the royal institution chartered surveyors, saying that buying a home in the u.k. is just going to get even harder. they say prices continue to climb in october and that long-term prices are expected to rise by 4.5% fo

if you look at u.k. weighted growth, our forecast has gone down by three quarters of a percentage growth. lowering --cutest that is the cumulative lowering of demand. the rate of growth in china is slowing to about 6%. certainly, china is at the center of it. this is not just a china story. estimates, say best you also said the prospect of banks inside china, financial stability board, how much do you worry about tom much bad stuff there is -- how much you worry about that stuff on the balance sheet? one can expect that some point there will be an uptick. we haven't yet seen it. credit,ease in private aggregate credit has doubled two times in the last five years. as the economy slows and as nominal growth slows, -- chinese nominal growth was about 20% in the immediate aftermath of the crisis. it has slow to just above 6% at present. that therexpect would be an increase in nonperforming loans and banks would have to adjust to that. >> are they measuring that correctly? >> they have to actually start not p

in u.k.. what does that mean for carney's thinking? stephen: i wouldn't say it indicates that there is no more slack. we have seen a pickup in productivity this year in the u.k., and that is reflected in the labor market data. in other words, slower growth in overall employment, and generally no significant declines in jobless games. -- gains. we have been below the 7% unemployment rate threshold that the bank set out in 2013 for a significant period of time now. it is less relevant, considering that the move below 7% having contributed to a very significant pickup in wage pressures. more importantly, with the bank of england's operating, doing right now is operating between two of the three knockouts it's beingt in 2013, the first preventing inflation expectations from becoming unanchored; two, financial stability risks. francine: given all of that and the softening of wage growth we saw in today's figures, when to you expect an interest rate hike? stephen: may of next year, but we also thin

meanwhile, u.k. prime minister david cameron urges lawmakers at home to sign off on airstrikes in syria. >> i firmly support the action that president hollande has taken to strike isol in syria and it's my firm conviction that brittain should do so, too. >>> pfizer and allergan are

this could happen here in the u.k. what the prime minister is looking for, he is trying to gauge the mood amongst mp's and he said today he will not put this to a vote. within hours, britain could join its allies in bombing syria. that will mean he is sure -- he has to be sure he has got the majority and can get the green light from all the mp's in the house of commons. >> reporting from london. the british prime minister's words are likely to be welcomed by the french president. he is looking for joint action against the group in syria and the rock after the paris attacks -- and iraq after the paris attacks. the german chancellor saying she will stand i france but has so far in -- refused an increase in military action. thecois hollande met with italian prime minister before he heads to russia. today, i will go to moscow. all these meetings will enable us to draw lessons about what happened during this awful event in paris. worse if the be international community in the face of terrorism and daesh, fails to make decis

i think president el-sisi is in the u.k. and with u.k. investigators, they may shed more light on it. i think it may be premature that there is a bomb on board because more cautious comments would have been used if they had information. the engines plosion on board, if there was an explosion, we don't even know that yet, could have been purely because of technical reasons. >> there was a report that the u.s. military satellite picked up a huge heat flash in the final moments of the plane. would that have been peculiar. >> not really. if the engine exploded for technical reasons you would get a heat flash. if it had to do with a bomb in the cargo bay, that would have caused the heat flash as well. >> thank you for coming in to talk to us. >> now at least 40 people have died in a plane crash in south sudan. three people including la "a" chide are reported to have advised. the exact number of people on board is not clear. the plane was reportedly over loaded with passengers not on the official manifest. al jazeera is in juba. >> the plane cr

moving on to national grid, another u.k. plc. the operator of the uk's electricity and national gas todayk started a process for the potential sale of a majority stake in its domestic gas is to be should business. we are seeing that move higher. julius baer, the third biggest wealth manager, that stock down. it's growth margin narrowed. restrained client activity. i said stocks in europe were shrugging off the china data. you can see copper down just about .5%. lossess been leading the . nickel has dropped to its lowest since 2008. ask to you, manus. manus: lovely. .ejra cehic there what is happening later in the show? first up, chinese inflation data points to slowing demand in the world's biggest economy. what is the contagion echo that is the question for us on the move today. -- i love this. no mission is impossible. that is according to the prime minister here, david cameron. british membership of the eu. ♪ would china's consumer inflation slowed in october while factory --e deflation extended listening to and the -- spent t

of course, the u.k.ellor will give us much more detail a little bit later on when he delivers the first statements of the conservative majority this lunchtime. one of the big questions is whether mr. osborne will be forced to cut a target of 10 billion pounds by 2020. last week, figures showed the deficit the biggest cents october 2009. they missed the borrowing target set by the office of budget responsibility in july. one of the men charged with digging to the data is dan hansen, let's bring him in. the numbers for october, how do they change the world? dan: you are quite right. the numbers were weaker. be 5pect more over 2016 to million or 7 billion pounds higher. what we expect them to do with that is not the weakness to the forecast. back into the forecast and it will be slightly smaller. but they will get is a slight windfall from the interest payments. yields will be down, we expect inflation forecasts to be slightly weaker. interest payments could be slightly lower. overall, you're quite right. a

>>> the u.k.'s foreign minister says there is a significant possibility that a bomb brought down a russian passenger plane iin egypt. ♪ ♪ >>> hello, this is al jazeera live from doha, i am adrian finnegan. also on the program. egypt's president dab del fatah sisi is in the u.k. on his first official visit i but there are questions being asked about his poor human rights record. the syrian government says that it's taken a strategic road not are you diamondback subsided city of aleppo. >>> plus mexico's cannabis club the supreme court there makes it legal for one small group to use the drug. ♪ ♪ >>> britain's foreign secretary says there is a significant possibility that isil did bring down a passenger plane in egypt. the british government is hosting egypt's president right now on an official visit. but has sent its own i've jags experts to assess the security of the airport in sinai. it has suspended all flights between the u.k. and the egyptian resort and says it will not resume until the assessm

and u.k. labor force participation rates. the u.k.tting its highest level in decades and the u.s. is at its lowest level. what explains the difference question mark -- difference? it's not just the u.k., it's all of europe. you have unemployment rates above 10, so what is it? it is a lunch of efferent rings. -- things. the crisis has forced more people into the labor market. u.s., iin -- in the don't know the answer why suddenly all these people are leaving the labor market. alix: why are the markets missing all these data points? see a 50% chance of a rate hike until may of 2016, so why are markets getting that wrong? >> it is very strange. i agree with you. in my opinion, they put them at different standards. biggest deficit and u.k. history. deficit, andiscal nobody seems to worry. 5% of gdp net. people don't seem to worry. i don't know why people get it wrong. i suspect that there is confusion because of this forward guidance, which we have failed it. said, look at what they ultimately they wanted to wait for the fed could i'm com

then, there will be a u.k.forum at downing street and then tonight, celebrations at wembley stadium. this will involve tens of thousands of indians a product. they are abroad from india in the u.k. that, the prime minister will also be meeting the queen. this trip is just as colorful as the visit from china a few weeks ago. it is not perhaps, as economically significant. we heard announced, 9 billion pounds and $13 million of deals. largeight sound like a number, but it is not as much compared to the $45 billion that were signed with china. these deals are across several industries and are supposed to safeguard, or create 2000 u.k. jobs. vodafone is investing 1.3 billion pounds in india. they are emphasizing the close ties between the countries. the u.k. is the biggest investor in india. india is the third biggest foreign investor in the u.k., after the u.s. and france. it in best more in the u.k. then all of the other eu countries combined. that is the sum up of his first official visit to the u.k.. manus: tha

sticking with the u.k., u.k.lor of the exchequer george osborne reversed plans to cut incomes for people on low pay and found money for the police service. this is parliament's reaction as he announced his u-turn on tax credits. >> i've listened to the concerns. i understand them. because i've been able to announce an improvement in the public finances, the simplest things to do is to avoid them altogether. [jeers] is that the means tax credit thresholds remain unchanged. anna: the u.k. government has also announced increased homeownership in london by expanding its help to buy scheme in a city where average homes now cost more than half a million pounds. conservative candidate for mayor zac goldsmith was behind the plan. we spoke to him following the government's announcement. awaythink it is far and the biggest issue in london. the london helped to buy helped a lot of people who couldn't otherwise achieve homeownership. there's a lot more to be done. anna: in a city where the average selling price is over 500,0

this, of course, is a u.k. that makes it expensive broadband packages, and its share price is down 25%. anna: let's get to those numbers from sainsbury's. in terms of the numbers, they look to have been estimates, 308 million against an estimate of 204 million. they are looking forward to a successful christmas, and they also say they are on track to deliver 500 million pounds of cost the things over the next three years, with savings around 225 million pounds by the end of this financial year. a competitive environment out there, tesco trying to give something of a comeback, and how is it competing with the ongoing discounters? plenty more to talk to the cfo about when we talk to him in a little while. the subject of brexit -- what does that make to a business like his? is the living wage -- how that being factored into the business? they are trying to get a slice of the single stay action in china as well. talking of china, let's get to the asian market and see how asian markets are performing -- shery ahn is

the u.k.'s foreign secretary says te is a significant possibility that isil brought down a russian passenger plane in egypt. ♪ ♪ >>> hill owe and welcome to al jazeera i am jane dutton in doha. also on the program egyptian president abdel fattah el-sisi is in the u.k. on a visit but there are questions about his poor human rights record. >>> the government has retaken a highway in aleppo. >>> breath taking images of the sun courtesy of a nasa telescope. ♪ >>> britain's foreign secretary says there is a significant possibility that isil brought down a passenger plane in egypt. the british government is hosting egypt's president on an official visit but has sent its own aviation experts to assess security at sharm el-sheikh airport. it has suspended all flights between the youkilis and the egyptian resort and says they will not resume until it's a security assessment is complete there. egypt's foreign minister has reacted angrily to the prove saying any decision before the official investigation

francine: do have any u.k. banks? kevin: we have a bit of exposure.but even there again, you have to be careful because some of those u.k. banks have significant exposures to energy and commodity related businesses, to asia and emerging markets as well. volkswagenope, with and the motor industry, which is been a huge engine of growth for europe and the global economy, there are potential problems down the road there as well. francine: thank you so much. we will talk about the cars next. guy johnson there on standard chartered. now, more bank earnings still to come in your. -- in europe. on thursday we get results from society general. -- societe generale. activision has agreed to buy kingmakegr entertainmen. that is $1 billion more than the company's value. king digital has fallen 30% since the high in july of last year. the reserve bank of us try at left its key benchmark rate unchanged at 2% while opening the door to cuts in the future. the rba governor says the outlook for inflation made for further easing a policy. the us strong and against the u.

the u.k. and the u.s. say there's significant evidence that a bomb possibly planted by isis brought down the russian plane in egypt. britain suspends flights sending shares lower today. >> adeco in the red sending it's shares down. they still remain positive. >> it doesn't affect the financial position of our company it is a noncash event. >> janet yellen says there's a live possibility of a december rate hike as the french bank has offset volatility around central bank policy. >> based on the monetary policies regarding the fed, ecb i remain overall positive for 2016 in particular for the europe and equity asset class and especially if, as we think, we see a further improvement of the economy. >> british oil and gas services firm amec loses a fifth of its value after slashing it's dividend and increasing it's cost cutting. >> good to have you with us today. let's kick off the program on break news on monetary policy since we have been listening in closely to janet yellen and her testimony on capitol hill

not only from the u.k., but elsewhere.e: after the momentous events and some ofgypt, the violent events that followed what was a peaceful uprising, tourism figures came down. started coming back. then he is to be 2 million british tourists coming to egypt, one of the biggest, the second-biggest groups. it is now down to one million. with this latest development it is sure to take a huge blow. the against group came from russia. in russia today, they must be asking themselves "is sharm el-sheikh secure? is egypt secure." the message from egyptian officials is yes, please do not forget egypt, but they will have a tough sell. least: in other news, at 36 people, including women and children, have been confirmed dead after cargo plane crashed in the south sudanese capital of juba. alive fromre pulled the wreckage. the aircraft was not error-worthy. it did not undergo proper servicing and -- was not air -worthy. propernot go under servicing and maintenance. 100 refugees arrived in cyprus last month. they have been told that thei

it suspended all flights between u.k. and sharm el sheikh until further investigations can be completed. 224 passengers and crew died. neave barker reports. >> since saturday seven teams have been scouring the site where flight 9268 came down. and where 224 people were killed. it's a difficult task, with the wreckage strewn across the wide area of desert. russian investigators are using drones to try to identify anything that could answer questions about why the airbus 8321 crashed. there are constant reminders that this was a plane packed with tourists returning from their holiday. the flight is thought to have been broken up in midair. >> try to prove we did not bring it down or how it was brought down. we are the one who is brought it down. we will expose the way we brought it down the time we choose and the way we like. >> the egyptian government denied that, but the u.k. government said the aircraft may have been grout down by an explosive device. it's now sending a team of aviation expert to sharm el sheikh to help

meanwhile, u.k. prime minister david cameron will push for the budget to be increased to 12 billion pounds in response to terror threats. he will also visit president francois hollande in paris this morning to discuss the security situation. cutsche bank's plans to 1000 jobs in london next year. they say the layoffs were part of a plan announced last month. the bank plans to shrink its workforce by 9000 over the next three years. the next president of argentina after winning the general election. the two-time mayor of wayne authorities will take over -- mayor of buenos aires will take over december 10, thanks the for economic liberalization. an estimated $8 billion of shipments in stored crops. that is going to be part and parcel of the commodities slumped story. the agricultural sector will suffer. oil leading the loss of this morning. the dollar behind all of this. to bloomberg's asia metals and mining reports. are we bottoming out or are we to believe some of the comments that we have got signific

the top growth data was released in the u.k.. us the top u.k. economist at deutsche bank.he low the previous quarters. it is an unbalanced economy. the domestic economy is strong, but the net trade drag was nothing to shout about, was it? >> i'm not sure you can read too much into the future. it was exceptionally negative from trade. i would say that consumer spending is hardly surprising it is growing so well. we have low inflation rates. all of the other components of gdp. i am nervous about. the government spending. can it grow at these rates when we have such austerity plans for the next five years? i suspect not. the trade, influence by global economics and that sterling's up. i am about that on balance. mark: this is where you will lay it out for me. you are still going for a rate hike in the first half of next year. mark carney said that the low rate environment will remain for some time. according to you, some time means -- george: my view is made. even if they do raise rates in may, you could not describe that as a low rate environment. raising to 75 basis points

i'm wondering would you be as bullish in employing as many people in the u.k. if the u.k.part of the eu anymore? >> that would not affect our outlook in terms of the u.k. when we look at the u.k., first of all, in terms of the size of business we have in the u.k., it's a multi-hundred million euro business for us. we look at it from a global perspective where we have tremendous r and d centers in done de, london, edinboro, where we are building in a digital space globally. from an r and d perspective we're bullish in terms of talent. >> they say u.k. exit from the eu, that will impact the economy. i mean, i don't know if that's going to impact, you know, the labor supply or whatnot, but i assume that might have wider ramifications. >> well, i think there's the macro economics and micro economics. from a macro economics, i believe it could have an impact. from a micro economic perspective, we look at our customers. when they have head winds that are facing them, they typically need to change faster. change is a good thing for a technology company if they are positioned to a

nigel, you mention some of the strengths around the u.k. economy during let's talk about the u.k..hursday coming tomorrow. another fresh load of information from the bank of england. you since the economy peaking? nigel: if we can get more capital where it is needed outside of london, there is the potential to grow quicker. the problem is, we are not getting enough capital into the cities across the u.k.. london is the exception. we live here and we get excited by developments in london. if you go across the rest of the country, there is not enough happening. anna: you talk about that often. the money you are putting to work outside of london. why are not doing the same? nigel: people have been discouraged from doing that in part as of the lack of devolution. having a mayor in london has been positive. ing more powers is a good thing and they will try to stand on their own two feet. attract equity capital. we spent too much time on the banks and short-term capital. we should spend much more time figuring out how to get the institutional and pension money to work more efficiently, i