Transcripts For BLOOMBERG Countdown 20140919

Alibaba raises 21. 8 billion dollars in its share sale. Welcome to countdown on this historic day. Lets get straight to the history, the top story in edinburgh for the scottish vote story on the independence. The votes are being tallied. Early vote tallies put the no campaign ahead. And that edwards anna edwards is there live. Shes been up since the wee hours. 1 30 a. M. The numbers started to trickle through. We started to see an early lead for the no campaign. 32 counts, six in the know campaign. The 32 counts of reporting. We have a great deal about the story now. The no campaign. Not means it looks as if the campaign has done enough here and its to remind you that this is no to independence, no to breaking up the United Kingdom. No or no thanks, he says he has been humbled by the amount of support the team has seen. The Scottish National party leading the yes campaign. Alex hammond on twitter congratulating the people in glasgow voting yes to independence. They did make some big wins. A surprise. Of interesting for an International Market to see whats happening of aerdeen not much surprise because of the amount of the oil industry concentrated on that part of scotland, above average income. Bornee a lot of nonscot people there. Many of whom might have voted to stay in the United Kingdom. Turnout has been an 85 point 4 , nowhere near the record beating turnout that had been suggested by some of the polls but interesting to see after all the time that we are at 55 no. I remember the polls giving us that kind of result. That is kind of where we are for the moment. Its amazing. Not recordbreaking about the level of engagement is really impressive. It will be fascinating to see the paradigm shift going forward. Where is the focus likely to be if there is indeed a victory for the no camp . You mention a paradigm shift. Part of the ruling coalition, they were talking about federal options for the United Kingdom and this is something that will be talked about a lot more. Increasingly toward the end, they were selling this as not something that would result in no change but something that would also result in change. We ended up with a vote that would result in changing the way. Looks like we have not ended with Scottish Independence. Inh only 29 out of 32 counts , if that is the case, many questions will be asked about what politics look like in the much resolution will they receive . They are promising a great deal. How will they deliver that . It is still a parliamentary issue. Some have voiced if you concerned about where this leaves the rest of the u. K. And why they should have this commitment. There are voices in wales suggesting that day will come out of this worse off. Why are they not getting increased powers . 85 of the population lives in england. Perhaps the devolved powers are only for the minorities but in england are going to start asking where the English Parliament is, the english voice. There are Big Questions about voting. What right should scottish mps have on issues that do not them. Scottish mps get to vote on english and welsh matters that do not affect scotland. There will be many questions raised on that. Europe will be looming large ear. I remember reading Something Interesting by george soros. Might we see another referendum in scotland . If the u. K. Decides to leave, might that the seismic enough to warrant another referendum . Big questions to answer in the days ahead. Theyve been through a lot to the last months and weeks. What is the pound . What is the United Kingdom . These are such fundamental questions and it will take some time. Back to you. Many more questions than answers it would seem at the moment. I rather dark, cold, pretty exciting. Willts get to what hopefully be a lively environment. Its the final day of trading this week. Jonathan ferro is at the Trading Floor. Just looking at sterling, the debate is how much of the move, how much of this is people taking off their hedges and Short Covering . Whats the feeling on the floor . Excited abouting the vote coming in but sterling cast its vote yesterday. They are up the most since soon. Me, they have been at this whole morning and they just told me that daily volume happened in just two hours from 12 a. M. Until 2 00 a. M. Interestingly enough even though , that waslike a no placed yesterday. That was a pretty big move in volatility dropping the biggest oneday drop since 1999. Were also seeing equity futures indicating higher. At this juncture, what are the boys and girls saying . You look at futures, they are much higher. We could have a pop on the ftse 100 of about 1 . Rbs is already up. The market woke up for this whole debacle in early september. A lot of volatility from some of the big british lenders with exposure, but i think everybody started to get a little more sensible. The market anticipated this move and its not a big surprise to many on the Trading Floor now. I know we will get a lot more from you through the morning. Ferro live on the Trading Floor. Lets talk about business. Youve been looking into some of that as well. Have voicednesses their concerns. The potential for an independent scotland in the runup to the referendum. The final result approaches. Look at the sectors voicing their concerns and key among them were the financials. Lloyds Banking Group is more exposed them the royal bank of scotland. Those were the key players that were perhaps the most out risk. Floyd had about 3. 7 we have our final confirmation on the scottish vote and it is no. Sorry to interrupt you but we are now confirming scotland votes no on the referendum to independence and the vote is now confirmed. Its a done deal for businesses. Some of the companies you just mentioned. Will they still read domicile . Will the risks still remain even though we have this out and out victory for the no campaign, Better Together for this . Willstill feel if this loom large in the future. Likese therefore see the of the royal bank of scotland moving their headquarters into england to ensure they would and theysolutely there would have the regulation there. Its a question of currency. Thats what really what has led this entire campaign whether it wouldx salmond saying we continue to use the pound in scotland. That has really been a risk for every single business out there because you are suddenly trapped in different monetary policy. The scottish did manage to peg to the euro or the pound suddenly seeing we would get a weakening in the currency or indeed a trap in the wrong monetary policy. Just talking to john about it there but this momentous rally not breaking through 167. There are great many issues in the max. O much more that to come through the show. Join us on twitter. Euro sterling at a twoyear high. Join caroline on myself and myself. manuscranny and carolinehydetv. Join us both. Welcome back to countdown. Here are live pictures of a polling officer making yet another return. No to independence on this historic referendum. Its been confirmed by bloomberg. The polls are still coming in. Lets get to our correspondent anna edwards in scotland. Its a no vote. Thats pretty much what we were calling as we started the show. 300 years of the union intact but the reign is very scottish. The union lives to fight another day. Years of union between scotland and england, it fights on. 31 out of 32 have reported so far and the reports have been declared. The no Thanks Campaign or the Better Together campaign depending on how promising you want to sound about it. We have one remaining count done step outstanding. 44. 6 coming through from the yes. We would have to see that somewhere around the 97 mark. The highlands are not yet reporting. We can still say that the no campaign has one. The union lives on another day. So many questions now to answer. Been humbled by the brother upport the. Etter together campaign we know its going to be a majority for the no campaign. The important to say that referendum was an agreed and consented process and scotland has by majority decided not at this stage to become an independent country. The verdict of the people and i call on all of scotland to follow suit and excepting the democratic verdict of the people of scotland. [applause] but i think all of the yes campaign will say that the 55 , the 1. 6 million votes is a substantial vote for Scottish Independence and the future of this country. [applause] i hope this unites all campaigns and all scots. The process by which we have ,ade the decision as a nation enormous credit upon scotland. Highestone of the participations for any election or any referendum in history. This has been a triumph for the democratic rss, participation in politics. Process. E democratic [applause] for example, the initiative by which 60 and 70yearolds 16 and 17yearolds were allowed to vote has been a resounding success. No one will ever again dispute their ability to participate fully and responsibly in democratic elections. [applause] we now face the consequences of scotlands decision. The number of agreement is now in operation. On behalf of the Scottish Government, i accept the result and i pledge to work constructively in the interest of scotland down the rest of the United Kingdom. Party made vows devote the campaign to more powers to scotland. Scotland will expect these to be honored in a rapid course. [applause] just as a reminder, we have been promised a second reading of a scotland bill by the 27th of march next year. The 1. 6 million scots who voted for independence will demand that the timetable is followed, but all scots who participated in this referendum will demand that timetable is followed. [applause] i will be speaking to the Prime Minister shortly after this statement and i have a press conference later today to reflect on that and the full results. So many scots entering the political process for the very first time is something that is so valuable that it has to be cherished, preserved, and doped up on. I said a number of times in this campaign that the most moving ofng i saw was the queue people patiently waiting to register to vote. Most of them for the first time ever. In theg to participate democratic process. Lady comingearold out to the polling station who had never voted before in her life. Soldier who had not voted since he left the army some 24 years ago. Salmond, theex leader of the Scottish National party giving you his first reaction to the results in scotland with the independence referendum. The no campaign has one and the inge feet inexcept this referendum and calling crucially for more powers. Ond praising the enthusiasm of the Younger Voters who were able to vote in any form for the first time in the u. K. And also talking about how proud he was at the way the campaign was run and the way the vote unfolded. He said it was a triumph to the democratic ross us that we saw some 86 turnout. Think about what this could have meant for the United Kingdom. When ireland lost the United Kingdom, there was a great deal of violence. We talked everyday about this and this has been an incredibly peaceful campaign. Any small skirmishes there might have been in the last couple of days around the very end of the campaign of the trail really not indicative of the campaign as a whole and it has been incredibly peaceful. Most people leave spoken to here has been excited about the process, very engaged. Everyone onlys, talking about this. Some people will be very relieved its finally over and they can get on with the business of whatever they are doing friday, september 19. Back to you in the studio. Thank you very much indeed. Lets get to an Immediate Reaction with a Senior Adviser to Credit Suisse. Relief rally . Will they be holding onto the gains . I think the answer is yes. We were just talking about the Foreign Exchange markets. It was a very clear that the market sold off on the sterling and short positions were being built up in reaction to the opinion polls moving to a very close position. Lets be blunt. We saw 5149 and a few opinion polls showing independence was going to be the likely outcome. What happened is theres a lot of those short positions closed off. We had complete uncertainty over the result. Whats happening already today with the confirmation of the no seen a reliefave rally in sterling. 1. 65 and im up to assuming most of that will be economic fundamentals driving the Foreign Exchange markets and i think we will have a release in the guilt market. Emphasize the word minor. Is up because of europe, rate hikes, you dont believe in the strongest cause in the oecd . An independence vote we would have ended up with a very complicated situation and to some extent the equity market. The big hit would have been the theign exchange and less so equity market. Now we have a clear no boat and weve had the relief rally. That extends a little bit further but the trend of a stronger dollar will reassert itself over the next week or so. I think the trend of a modest willase in bond yields reassert itself. The market will come back to what it was doing before, highly correlating with on the markets. Are we going to see lloyds and rbs redomicile . Who is the regulator . Irrespective of whether the legal place of registration is edinburgh, glasgow, or london, the regulator is still the bank of england, the provincial authority. Frankly, it does not matter whether they are registered in scotland or london. It would have been chaotic if we would have had an independent smoke. Rbs regulated in scotland, who is the regulator . What really concerned the bank of england was less the impact on the gold market and more the impact on the Credit Rating and the credibility of the banks. Bob parker will be staying with us, Senior Advisor at Credit Suisse. All of the Market Reaction to the historic event. It is indeed a twoyearrling at high. Bob talked about the implications and we will have more on that straight after the break. The Union Remains. Welcome back to opene countdown. The Union Remains intact. Ere up over 1 the market shows were going to 1. 6 seven. Nce around the story is Dollar Strength. The riskr saying of people taking off some of those hedges are what they were trying to do. Thats not actually the right way to look at sterling euro. Sterling volatility drops to its lowest level in 1999. Lets have a look at dollar yen also on the move. Dollar strength comes through the most in dollaryen where you are seeing the bank of japan that itabout, warning is moving. They cut their Economic Assessment the first time in nine months. Lets switch gears. Scotland will remain part of the United Kingdom. At last count, 55 of voters supported the no campaign. 45 backing an independent scotland. Turnout in some regions was 90 . Scottish National Party leader alex salmond has accepted defeat. Congress has passed president obamas plan to arm and train Syrian Rebels and this comes less than seven weeks before the november Midterm Election shortly after obama spoke from the white house thinking congress. We continue to build a Broad International coalition to degrade and ultimately destroy the terrorist group known as isil. Goldman sachs chief executive Lloyd Blankfein has been speaking to bloomberg. He says there are some reforms he would like to see in washington. From this point forward, get news issues. We need to heal the economy. You have to get yourself into a situation where you can actually legislate and you picked three gray areas all of which support the Economy Infrastructure spending, immigration, all of the right things to do. Now we join Credit Suisse Senior Adviser bob parker. Remainshink the risk sayingt alex salmond is were going to keep on fighting. Is this risk going to rear its ugly head again . Lets a member what happened with canada and quebec when we went through a series of referendums. Be rallying will for another in a few years time despite the fact there has been a consensus that there will not be another referendum for perhaps 10 to 15 years. Tois the mandate to continue argue for Scottish Independence. They will not change their spots. , worried aboutt the risk of Scottish Independence, i have always argued the biggest risk was to the banking there, i think it is frankly off the table for at least two to three years. What is most important is what happens next may with the general election, what happens if we have to have a referendum of the ueu. That will turn into a whole conversation right there. Veryre going to be concerned over the next few years. Lets shift gears a little bit. Money, howhing out big of an issue is that for mariota draghi in terms of expanding the Balance Sheet . Mario draghi . I actually do not like the acronym. We now have to call it teltro . Was 83 billion dollars. They said its a reflection of week demand for credit in the eurozone and to some extent it is true reflecting we still have weak euro zone economic indicators. Having said that, led by germany, we are going to see a pickup in the eurozone. I think German Growth annualized could easily be 2 . A key factor is that the ecb has achieved a weaker euro. Although they did not say that clearly in public. , it was a real cause for concern and now we are down down toand we will go 120125. Thats a big call. Its very positive for german exporters. Ds and its very positive for reducing the risk of deflation in the eurozone, a major concern for the ecb. Thank you very much, bob parker, Senior Adviser at Credit Suisse. Scotland has decided that it is a no vote to independence. Joining us now, john, welcome to countdown. A relief . Amongstcularly businesses in scotland because they would have been much more effective than the rest of the u. K. Does the risks still remain . Do we have another canada on our hands. Will we see lloyds Banking Group, rbs because they think it might rear its head again, come into england to fend off currency and regulation risks . It depends on a number of factors. Whether they will remain the largest arty. The whole started pr system is set up to prevent that happening in the first place. That could slip away. The amount of time will probably be rather longer than three or four years. It could be a decade and beyond. The history of canada and quebec is because they were actually quite tough on the separatists after the very narrow victory for maintaining the union in canada, the vote for separation slipped away and thats confusing on how they should behave. They have not been great ocher players in the highstakes game. Panic. A lot of what we cover on countdown, we saw bob dudley. This no vote in terms of inward investment in the scotland, is that the best result . We have good growth in the u. K. Those things are done. We actually have a great future at least in the medium term, a great Sustainable Growth and we can now focus on building great Sustainable Growth. Meeting with investments in scotland and the rest of the u. K. Ond does produce any level of uncertainty it will be bad for scotland. Its very important that we now and weround this vote see a United Kingdom moving forward for a great longterm Sustainable Growth to benefit everybody. Do you think it has damaged the pr of scotland . The builders were at risk, barclays, the ones with stake within scotland. Are they more reticent on the backlash of this . We surveyed the rest of the u. K. Business community and 90 really had no intention of changing strategy. The scottish economy was far less important for English Companies in terms of trading than the english economy. Its really important to maintain growth in the scottish economy that we now say we are the United Kingdom men moving forward for growth. There will be a backlash in the english regions in all administrations and this is a very important factor. In the business community, im for devolvedds administration in those regions. They promised that. They said liverpool, manchester, you will be able to have more control over the money coming in. To lapse anding deliver this where as the tory probably looking toward the city mayors. The most important thing is we do not have another layer of government imposed. Nobody wants another layer of government. Theres extra cost of business. But they actually do want to have is more ability to determine how they spend money locally for economic valid men. That will be very important. There will also be a demand for scottish mps not to vote on matters in westminster. The whole Political Landscape is the next big issue. Always great to speak with you. Director general of the British Chamber of commerce. The votes are in and scotland stays. Hsbc chief u. K. Economist joins us to talk about scotlands decision next. Quickly we will take a look at the leader of the no Thanks Campaign taking to the stage to speak. Welcome back. We are going to Alistair Darling speaking in glasgow. We represent the majority of opinions. We have taken them on and one. Scotland has spoken. [applause] course, of course i understand that amongst those who supported yes there will be disappointment or even grief. Defeat is painful and i can tell you that from my own personal experience. [laughter] i know there are many people with deep and genuine commitment to scotland on the yes side. They will and must continue to make a contribution to the political debate in our country. [applause] but that debate must move on the issues that affect their daily lives and prospects. They must use the power that they hold now and address these concerns. [applause] when the Scottish Parliament was born under the government which i was a member, we talked about it being a journey. He would have been proud the scottish democracy is so vibrant, so proud, so alive to take the next step down the road that weve began. Parties have made anded commitments to change must now translate that into action. I give you my commitment to support that process. [applause] we will work with all of the scotland to advance this. We must also recognize the debate has created some fairly deep divisions in our country. This has been a campaign that has both energized but at times divided. Some have felt unable to speak except through the ballot box. Bese divisions now need to addressed and that requires leadership. My colleagues and i will play our part in bringing our country together to demonstrate that after this vote, we cameraman united. [applause] this has not been an easy campaign. Against change is sometimes difficult than to argue for no. We are obliged to point out that some of the arguments for separation were going to cause damage but we had to do it because those risks were real and it contributes to the good sense of the scottish people that they decided that the risks were too great to take. [applause] the vote is over and the scottish people have now given their verdict. We have made a decision for that startedchange within the United Kingdom. , on, scotland. Lets move on with this together. Come on, scotland. [applause] that was Alistair Darling, leader of the Better Together campaign. Come on, scotland. Lets get it together. Go fromlly important to what has happened in the voices in this campaign to real action and that is the road towards evolution. We are going to take a quick break on countdown. We are going to talk about the Economic Impact of this no vote with simon wells, the chief economist at hsbc as scotland votes no and decides to stay in the union. What does it mean . Thats next on countdown. Welcome back. Youre looking at live pictures from covert garden. Covent garden. People have been lining up all my to get their hands on the new iphone 6 model. We are seeing huge queues overall. This is for the iphone 6 and ph ablet, the 6 plus. Clearly theyve all been waiting with anticipation to get their hands on the new and slightly bigger iphone. Lets bring it back now to a certain scottish question. They said no. Excuse the irony. Scotland will stay in the u. K. Lets get a little bit of analysis. Simon wells, hsbc chief u. K. Economist joins us. What does this mean for scotland . They said no. We had conversation with John Longworth from the British Chamber of commerce. And theote will grow momentum will reestablish confidence in the scottish economy. Would you agree . A huge been avoided is amount of uncertainty. Its the enemy of investment. We have investment projects that might have been put on hold that can come back. Had big and sustained appreciation of the currency which would have pushed up inflation and a rooted real income and real wages further, one thing hampering the u. K. Recovery. A we are already seeing relief rally. What about the ongoing question that this believe in terms of where devolution goes for scotland . Will lloyds, rbs redomicile for fears this could rear its head again in the future . Given some of the opinion polls in the weeks of moving up to this, you could say that the margin was quite a decisive rejection of independence. Perhaps its off the table for a little bit of time. If the conservatives win an outright majority in next may election and perhaps the u. K. They are more proeuropean than the u. K. Average then we could then see the independence question back on the table reasonably quickly. Forink given the margin, now the independence question is off the table. Look forward and to some pretty big Political Risks still on the horizon. Political risk is back. The Political Risk is something we are learning to price again. That is probably something that they have spent less time on. How much more attention do we hate to what happens next from the bank of england . The no vote is in and a lot of people are saying if they vote yes or theres a delay in what the bank of england will do. What do you think it means for rates . A sigh of it is relief, the uncertainty being avoided. Recovery is probably on track and they can get on with raising rates. Expect that february of next year. In terms of what it all means, you can argue two ways for Political Risk. We were worried for a few weeks and it turned out to be a storm in a scottish teacup but i think thats the wrong reaction. I do not think they will see much more upside because the markets are waking up to some of the big Political Risks that still remain in the u. K. Us through where we position ourselves if we are going to see these Political Risks continuing. Should you be looking at the Industry Groups that will be most hit . Differente looking at wages . Spill out spell out what we are looking at. Currency is where it matters most. Or haps what some have missed in the shine has been coming off the pound for a few months even before we got into the fever of the election. It looks like some of the u. K. Data might softening. Weve beensurprise looking at might be going. We still have this really ugly and massive account deficit that people are not really talking about but nearly 5 are sent of gdp close to a peacetime record. Record. Y 5 peacetime for stocks, the ftse 100 a lot of games and revenue generally generated. Maybe on the domesticfacing stocks on the ftse 250 we might see a premium creeping in there. Simon, were just getting breaking news coming from companies. Whiskey distilleries in scotland say they will now focus back on what matters with operations. Have companies been holding off . Have we seen a negative hit to investment because of this bit of the standoff over the vote . Its very hard to tell. Its not very granular but anecdotally, certainly in some agencies there have been stories about projects being put on hold. The referendum means whether you like it or not, there is a bit more stability politically so they can come back on the table. We come back to some of the looming questions. If you are planning for the future and you think the u. K. Itself may pull out of the eu in 2017, there are still a lot of uncertainty that nearterm definitely with the uncertainty removed, scotland question, some other perhaps Foreign Direct Investment spending will start to come in for scotland. Its been wonderful speaking to you. Thank you very much, simon wells, focused all on differently and where political rest is back on the agenda. Countdown continues in the next hour. U. K. Prime minister David Cameron will make his statement on the result of the scottish referendum. If you are just turning in, its a no. You are very welcome to countdown this historic friday. Lets get straight to edinburgh with an edwards. Anna edwards. Scotlands rejects independence from United Kingdom. Take it away. Thanks, venice. We have a note vote a no vote. The country votes to state in the United Kingdom and preserve lasted 307hat has years. Newsbefore 6 00, local channel started to call it look like it was going to be a no. Then we heard comments that they would concede defeat. Around 20 past six, he conceded defeat. He called for scotland to move on. Fromng live pictures london. Waiting for David Cameron to make an appearance. He is going to be speaking any minute. We have heard from Alistair Darling, the leader of the Better Together campaign. The know to independence campaign. Independence campaign. He says he has been humbled by the level of support he has received. We are expecting David Cameron to speak any moment. Lots to talk about this morning. Lots of questions about the structure of u. K. Politics. Various figures talking about what the u. K. System is going to look like. Entioning the word federal we have devolved some powers to scotland. Willis has its own Assembly Wales has its own assembly, but not the level of devolution that the scots have. That inill all of all that for england . We have seen the rise of the independence party. Loud voices asking what this will mean for england. 85 of the population lives in england. Lots of questions there. Also about what role mps will have in terms of voting on matters. The question which is named after scottish mps get to vote on u. K. Wide policies. And do not apply to scotland. Yet the reserves o reverse is not true. That is one of the oddities of u. K. Politics. We are waiting for David Cameron to speak. Anna, thank you very much. Live in edinburgh, summary questions to be answered. Talking about devolution. Is living to he fight another day. As bob barker said, what else do you expect the National Party to do . The mandate is about continuing the vote. Alistair darling saying it is about the devolution. And the rest of the u. K. What it means for the english in terms of demands from central government. We are a committee called bloomberg. We are getting breaking news from businesses. Vote andey respect the n customers. Inskey distilleries scotland. The future is bright as long as there is no more regulation or tech station. Taxation. On matters andng terms of their operations. In terms of marketing, lets go live to john. He is at the Trading Floor. Working out what those boys do with the screens. Said, dont get overly excited. What are they saying down there . A similar feeling, manus. Back towards the dollar. They have been very busy. A days volume in two hours. You are talking about the shortterm and where we go next. Why wont it go back to 1. 6i5 . The vote becomes yesterdays news. No one talking about sterling as much. They are talking about dollar yen. I know thats heavily not what you want to hear, but we are moving on and talking about Dollar Strength. I am with you. You see the comments and understand the momentum in dollar yen. There are other products. Im am looking at equity futures. Up the read we will leave you there because we have Prime Minister David Cameron. Lets listen in. People of scotland have spoken. It is a clear result. They have kept our country of four nations together. Like millions of other people, i am delighted. During the campaign, it would have broken my heart to see our United Kingdom come to an end. I know that sentiment was shared by people much to cross the country but also around the world. Because of what we have achieved together in the past and what we can do together in the future. It is time for our United Kingdom to come together and move forward. A vital part of that will be a balanced settlement, fair to people in scotland and importantly to everyone in england, wales, and Northern Ireland as well. Lets remember why we had this debate. White was right to do so. The Scottish National party was elected in 2011 and promised a referendum on independence. We could have tried to block that. We could have tried to put it off. Just as with other big issues, it is right to take and not duck the big decisions. Im a passionate believer in our United Kingdom. I wanted for our United Kingdom to stay together. It i am also a democrat. It was right that we respected ty and gavearjorie the scots people the right to have their say. Debate has been settled for a generation. Or as alex salmon has said, perhaps for a lifetime. There can be no disputes or reruns. We have heard the will of the scottish people. Scotland voted for a stronger Scottish Parliament act by the United Kingdom. I want to congratulate the no campaign for that. That we are Better Together. I want to pay to be two yes scotland for a well fought campaign. As it to those who voted for independence, we hear you. We now have the opportunity to change the way the british people are governed and change it for the better. Political leaders on all sides of the debate now bear in responsibility to come together advance the it interests of people. To those of scotland skeptical of the promises that were made let me say this. Devolution. Vered on we will do so in experiment. Parties have made commitments on further parties for the Scottish Parliament. We went sure those are honored in full. He has agreed to take forward the process with powers over tax, spending, and welfare. And draft legislation published by january. Just as the people of scotland will have more power over their affairs, so it follows that the people of england, wales, and Northern Ireland will have a bigger say over theres. Boaters have these to be be respected, preserved,d enhanced. It should be accompanied by a fair settlement that applies to all parts of our United Kingdom. In wales, there are proposals to give the government and assembly more power. I want wheels to be at the heart of the debate on how to make our United Kingdom work. And Northern Ireland, we need to work to make sure the institutions function effectively. I believe up part left out is england. We have heard the voice of scotland. The voices of england must also be heard. The question of the english laws, the socalled question, requires a decisive answer. Voteas scotland will separately on their issues of tax, spending, and welfare. So to england as well as wales and Northern Ireland should be of to vote on these issues. Place at the take same pace as scotland. Place on a will take cross party basis. I have asked we have to drop the plans. We will set up a many right away and proposals will be ready setup a Cabinet Committee right away and proposals will be ready. It is important that we have civic syndic wider engagement including how to empower our cities. This referendum has been hardfought. It has stirred star on stirred strong passions. It has cut the caught the imagination of people. As all be remembered demonstration of the strength and vitality of our democracy. Record numbers registered to vote and cast their vote. We should be proud of that. It has reminded how fortunate we are that we are able to settle these issues at the ballot box peacefully and call me calmly. Must turn this and the moment that we build the better, better Brighter Future for our entire United Kingdom. The you very much. Thank you very much. David cameron there. Talking about four nations together. He talks about tax spending and welfare. It will be draft legislation in november. Voted on in january. A bit of relief there and number 10. I think there were probably a few sleepless nights. Also talking the english issue, that the scots and welsh can vote english votes on english laws. The question throughout the United Kingdom, Matthew Beasley has joined us to try to put these markets in context for us. Head of global equities. What you make of it so far . A little bit of relief in sterling. Credit equities, sterling. The key thing is, markets have predicted this to some degree. A muted reaction. That is right. You have seen sterling recover against the dollar. We talked about the markets moving on and the dialer d ollar strength. Roaring ahead. You talk about sterling moving down. It has really been about Dollar Strength, not sterling weakness. Market is different. There are some stocks that have been disproportionately hit, given the concerns about what would have happened in the s purity stocks like what would have happened with a yes. Will you leave you can put orders and. Uin. Out over a 30en day time. We you see a rush of money back in . I dont know about a rush. Investors will be happy to invest. Had it been a yes, there would have been a lot of selling. An absence of selling. The timetable is important. We speak to a lot of companies. We get the sense that lots of companies have postponed or are think it about postponing Investments North of the border. The uncertainty is going to have stop and going to stop some people investing. The devolution is very important. The referendum for the u. K. The next excuse for businesses to pause investments. That is two years away. Predicated on the sense possibility that you get a tory win. This is about politics, isnt it . Is this going to reshape the momentum behind the next British Election . This has opened up the voters minds. It has become a very nationalistic environment. The u. K. Party will be taken some lessons from what they have done north of the border. We are going to see a revival we have seen in other parts of europe nationalist politics more at the four. What about spain . Others were questioning about countries with areas that might seek independence. Has the spanish market been affected . Brave decisione and allowing a scottish voters to have the call. Willuestion is wearable other geographies be as brave . You are saying clarity is a good thing. You have the fast track to give them more powers. What about lloyds and rbs . The risk will remain. Rbs or lloyd will costs a billion pound. Will that still happen . It is about a billion pounds to set up a separate scottish. Rank we speak scottish bank. We speak to a lot of companies that wonder where to build a call center. People lean towards the safety of what they know. Even if it is 10 or 20 years down the line. Well will it incentivize them to invest . This is where the details are important in terms of tax. The subtle suggestion that there is devolved power. Detailse the real world that make the difference. To the could the negotiation on tax and spending, i was thinking they could look of the ireland in terms tax rate. What if they went for a lower tax rate and went after Financial Institutions . Replicated some the good things in the republic of ireland . There has been a Global Corporate tax race to the bottom. U. K. Nd is winning, and the is not too far behind. Evidence of the that in ireland. It was incentivize investment. All gaelic right now. Get minutes managed to ireland into the middle of a scottish debate. Stay with us. We will be back with more things scotland. The question. As we bring scotland together, lets not dwell on the distance we have fallen short. The distance we have traveled. We shall go forward as one nation. , a message from alex salmond scotlands first minister as he conceded defeat. Interesting company comments. The latest from the royal bank of scotland. Pretty exposed to this thing. A number of assets and loans to customers. The big question is will they need to move their headquarters. No more they say. To movelonger plan their office because the no vote has one out. They say business as usual. Lloyds arerbs and higher. Lets have a chat with the head of global equities. See a pickup in training. But a lot of other things to focus on. We can focus on the u. S. And ecb. The yen. Sharp move in theres definitely a Dollar Strength story. Governor making some comments. We are expecting in the next few weeks some comments by the largest function fund in the world, the japanese pension fund. Above thereong way are targeted range. The bands around which they can invest are expected to move up. Of Japanese Equities by the pension fund. They can export because the yen is weaker. That will have the locations for the bond market. Equity markets are moving up in japan. Not just because of the dollar but because of the anticipation by the dpf. It is 109 at the moment. Looking back, momentum takes you back, if you look at the chart, to levels like 123 into seven in 2007. Is it yen . Yes. From an investment perspective, most budgets run through to march. A comparable number on the euro. There are implicit upgrades exporters andse companies that are sensitive. We get the focus back on fundamentals. Growthd revising prospects downward. You are saying buying equities in japan, even though we are reassessing white where growth is growing. Buying more japanese and european equities above u. S. Equities. The u. S. Has a lot more nuance. Theeconomic directory Economic Data is tough. We just had the ecb the targeted numbers were disappointing. But there are excuses. They make sense in terms of banks thinking about the the paperwork to get your targeted of angst thatount applied for the money. December is only two or three months away. That will be two months post the aqr. If you apply for this in advance these are legitimate questions. We know there will be further monetary stimulus. Is a question of what and when. Thank you very much. Matthew beasley, head of roberson global equities. What does a vote to mean for catalonia . They want their own independence referendum against madrids wishes. After the blake break, live in catalonia. You are very welcome back to countdown. Trade, they are getting excited about the referendum. In case youed no just are waking up. That is official. Dollar sterling had a upturn. Surprised if are not getting more momentum. Is were you are going to see the sticking point. Hedge funds and people who were worried about a yes vote covering their short positions, volatility dropped. The biggest oneday drop since 1999. Storys the euro sterling is better. Sterling rising to a twoyear high. The euro declining and pound rising. Less of a takeup in the ecb. Back to basics. Back to when the u. K. Centralbank and where the ecb is in terms of policy. Dollar yen, looking at a six week of gains. Dollar story, yen weakness story. Moreng on the need for easing at the bank of japan to get to the 2 target on inflation. Forecastrength, the from the fed, rates at 1. 75. Yen down. Dollar up. Carolyn, how are the equity markets looking . N eye onng my a lloyds and rbs. Where looking to see we are likely to see bonds rise. If we are going to look at the ftse 100 futures, we are likely to see a pickup. Already trading up. Expecting to see quite a balance on the footsie. Ftse 100. This is aeye out company with significant exposure in scotland. They make things in scotland. They have docked yards and government contracts. As the United Kingdom h never awarded any kind of contract in defense outside the border nations, the border of this country. Ssc is another one keep an eye on. The footsie for two 100 trading up. Ftse trading up. Catalonia is in the northeast of spain. It is hoping to hold on to its own have in its have its own independence referendum despite operation opposition from the spanish referendum government. To ourspeak on the phone guest who deals with Foreign Affairs on the half of catalonia. What does the scottish vote do . What can you learn from the campaign we have just seen in scotland for catalonia . Good morning. Atalanttle on government has a positive view on what we witnessed in scotland. Ofcan call it a fest democracy. The scottish people wanted to hold a vote on their future. They could actually do it and do it in agreement with the u. K. Government. Of course we are fascinated anyway. On a way. Demand was respected. On the other hand, because we attitude and determination of the political leader. To allow that vote yesterday. Is Caroline Hyde here. Calling it a triumph for the democratic process. But the fact that they lost slow thence, will that timetable with which catalonia will want to go in for an independence referendum . Slow or keep the pace down . They want to make sure this is in accordance with the law. The Spanish Government would sate it is illegal. Not at all. We are talking about two different processes. At the end of the day, we the with two thirds of the parliament, one to hold that vote on the ninth of november. Where talking about two different processes. There is a strong determination from the catalan people. As was shown by a massive demonstration a week ago on the occasion of the 11th of november september. We will do our best to hold that vote. In accordance with a Legal Framework that will be voted today in the cattle on Parliament Catalan parliament. It is manus. As youcarry that vote, presume, and agree to vote to have your referendum on november 9, surely it weakens your overall position. If the Constitutional Court over you rules you overrules you, you lose credibility. What credibility do you have on an International Stage . First of all, we need to wait to see first, if the Spanish Government is appealing against the law that the cattle on Catalonian Parliament is going to pass. The president has stated in several occasions, and also it is the will of the majority to uphold that vote, to hold it in a democratic way and in a legal way. I have to stress that point. At the end of the day, this debate is not a legalistic debate. It is a debate on political wills. This what we have been trying to expand to the Prime Minister and spanish been them government. Primeow your colleague, minister David Cameron, is behaving. He saw there is a clear majority which is lower than what we hold in catalonia. The British Government set down at a table with the Scottish Government and they agreed. This is what we want. Roger, it is what you want. But what if you do get the vote. There were some of the questions rather than answered that plate the independence fight in scotland. What currency will they have . Whether they will be the member of the eu. Have you answer those questions . This is a lot of debate you would have if you push through an independence referendum. Of course. This is part of democracy. We have debated these questions for the last year. The catalonian government, based on a resolution of the Catalonian Parliament, has released a number of reports that try to shed the light on some of these subjects. It is true that any process like this one has uncertainties. That happened at scotland. At the end of the day, is up to the scottish people and catalonian people to take a decision. We are talking about a mature democracy. The modern. The mock received. The modern democracy where simpsons have access to lots of information. They should have a right to have a say. We will leave it there. Thank you very much. It will prove an interesting day for you. Our thanks to roger. Lets switch gears and bring it back to corporate good or news. German Software Giant sap has agreed to buy a company for 7. 4 billion. You have a been all over this story, hands. It is all about the cloud once that is right. Sap gets a piece of the cloud with this acquisition. Bad news for manus and me. Any Business Traveler waking up in a hotel. Managee company does is travel expenses. Manus and i will never be able to pick the best hotel. Bad news for us, good news for sap. They bought it for 129 a share. 28 higher than when we first reported that the acquisition may take place. Sap is putting their money where their mouth is. They have talked about getting their way into the cloud. By 2020, cloud revenue will surpass what you have from Traditional Software licensing. Here is a quote from our chief their chief Technology Software officer. There is no debate that the cloud will be the preferred model. They have been on a running spree. Spending spree. Like s usingconcur are google and other big names. I suspect menace will still get into fivestar locations. Nothing in the world will stop me from fivestar locations. Hans nichols and berlin. In berlin. If you are good to me, i will invite you. We have a cracking interview coming up. With the ceo of sap. As they announced they have done a deal for 7. 4 point hours to buy concur. Talk to the man in charge. Welcome back to countdown. We have been talking scotland all morning. They made their historic decision. This is what David Cameron had to say earlier this morning. Now does time for our United Kingdom to come together and move forward. A vital part of that will be a fair to settlement, people in scotland and importantly to everyone in england, wales, and northern island. Lets head to edinburgh where anna is standing by. David cameron making some big promises. By november, they will have an agreement. Beasley from matthew saying this is good we are having it fast tracked. Yes. If you are investing, and what you want is an certainty is certainty, then you dont want negotiations to be protracted. Getting it done quickly is a good thing. In terms of what he said, he is walking a fine line between two camps. Hes got to a knowledge the voters who said yes. He said, we hear you. Hes got to say, the promises we made the leaders of the other big parties the promises we made, we wills deck to. We will stick to. We will get this legislation moving quickly. More powers to the parliament here in scotland. Other to talk to all the people who have not been that impressed with what they have heard. They have been frustrated. Some people have been frustrated. This is just the leaders of the westminster parties trying to hold the union together. He has made some big pledges. Talking about england being the missing voice and all of this. We need to hear englands voice. The question head on, saying there needs to be a decisive answer. It is not right that england needs to vote on their issues, and we have a situation where scottish mps get to vote on matters that do not affect them. Thank you very much. Jury edinboro, but there are plenty of celebrations going on. Sap in germany. Conquer co buy ncur technologies. Great to have you with us. Deal. One on the im beginning to read what the market is saying about the deal. They think it is a little rich in price. What is the thinking . Thank you for having me. We went for the Business Network. I want you to recognize, when you hear about alibaba, consider this. Sap has assets in goods and services, and now with travel and expense. These are some of the biggest business categories in the world. 10 trillion u. S. Dollars. Big market. Marketare the undisputed leader. Take amazon, ebay, and alibaba and combine them all to read saps Business Network is 75 larger. We made a bold move for the Business Network. I there is the suggestion am looking at the premium you paid i get the rationale and hear what you are saying, you are in dominant player. What is the risk you are chasing acquisitions . This isk valuations a fairly hefty valuation can you reassure investors you are not chasing a deal . Reassuretotally investors. First of all, this has is the number two Staff Company in the world. One of the fastestgrowing in the world. Roughly 30 on a consistent basis. Based oness case is revenue synergies. When you have a scarce asset that is a oneofakind market leader, there is no number two to concur. They own this market. You have to pay for that. We obviously would not have done it if we thought we would overrun the business case. Talk us through how much you see revenues in proving. We understand it is 700 million, a bit child where sales are for concur. Give us some targets. You said about revenue synergy. We dont own the company yet. Toacknowledge the desire acquire the company. The deal will not be closed until the end of this year, perhaps early next year. It is a little early to put out formal targets. We expect to grow it faster than it was growing as a standalone company, around 30 . If you put the math to that, we overee Significant Growth and above the 30. Giveshis does for us is us the largest car company in the world as measured by the number of users. It consists gives us the second largest in terms of revenue. And gives users were struggling every day to connect with land, air, hotels a powerful way on their device so they can leverage the Business Travel and experience to their personal satisfaction. World velers in the half of the travelers in the world operate outside the travelments of the management process in their company. We have cornered the market on that. All this will run on sap. You have the fastest business that works. Network. I am proud to say that concur is a marquee asset. I expect a longterm relationship and growth strategy. That is why we bought it. Sap has a history of buying the most impeccable, pristine assets in the i. T. Industry. Promising growth faster than 30 . Great to speak to you this morning. Thank you. Minutes away from the start of trading. , john, hows it looking . You could call it a relief rally if nothing else. Up 1 . Joined by james, the chief market analyst. A relief rally . It seems that way. We saw, overnight, a couple changes of use. The market going higher. Some clients are trying to sell in and get something going within the markets. The question is, will reading this again will we be doing this again in a couple years time . To be honest, i think there is a change for scotland and more power. I wouldnt be surprised to see this again. Lets put stocks to one side. The pound has pushed higher. It all about the dollar now . The fed was interested. That has overshadowed. We havehe no vote. Now to look at the dollar and where the rates are going. The dollar is going to be the story now. Today, we are going to get a few bits on the pound, but the dollar story will be the one. A day possible yen in two hours. In two hours. Ume where is the money going . So much flow going through. Even overnight, we have had euro sterling. The dollar yen has taken a lot of the volume in those two hours. You heard the man. Futures points higher. Stocks higher. It is called a relief rally. When you are looking at sterling, everybody is about the dollar. That seems to be yesterdays news. Dollar yen, back through 109. Big. Fromn ferro move straight you are toast he has moved on. Scotland is so passe for you. I was looking for the future forecast. Always looking for the future forecast. Lets look at a live shot of edinburgh. Exuberance for those who voted no in the independence referendum. We will be covering the markets. Yesterday well yes we will. Do stay with us live. Fact to edinburgh after the break. Welcome your watching on the move. Away from the start of european trading. Decision to remain apart from the you minded kingdom. We will be covering it from all of the angles. Anna edwards is in edinburgh. Jonathan ferro is on the Trading Floor. That is a know from scotland. Good morning. The scottish people say no to independence. David cameron says we hear you to those who voted yes and promises some pretty big terms for devolution. We are waiting for official reaction from european capitalists. The unofficial reaction a giant sigh of relief that scotland didnt vote for independence. More later on the show. The market looking at this as though it was yesterdays news. Boat votes its on a firm vote no. U. K. Ll look at that ek eu referendum. Talking about scotland, a lot of people talking about the strength of the dollar. That will be a good focus going forward. Decided it will not go its own way. The European Market is open