Transcripts For BLOOMBERG Countdown 20141118

Welcome to countdown. It has just gone 6 00 here in london. Is at the heart of the eurozone problem is. News. The Global Financial leadership trying to turn passengers into conference in florida. The frank view on the risk the the backseat djs, uber is eurozone poses. Area is thehe euro keeping up teaming up with spotify. Biggest risk because i do not think the leaders have a true service will roll out vision how to cope with the problem. This month in 10 cities including london, new york and singapore. The consensus view is germany snapchat is collaborating with needs to step up and the Buddhist Bank needs to change Payment Companies were it allows bank ne buddhas users to send money to each other. Is feature called snap cash sbank needs to change snapchats second revenue their tune. Generating product. The side effect will push up the euro a little bit and that how much money has been recovered from bernie made offs has done damage to france and fraudulent Investment Firm italy, i think the challenge for the ecb is to find a stance of fraudulentfs Monetary Policy that will allow the euro to weaken sufficiently Investment Firm . It is already the highest to give france and italy chance to start seeing recovery and growth. I must say the challenges are enormous and i do not believe in grossing animated film of all time and now disneys frozen is the optimism that always comes breaking records with its is from ministerial meetings iceskating show. Tickets in the wellfounded, they ought to be very concerned. What you think the next step first a of sales. The companys executive Vice President told bloomberg the should be . Thehe big challenge is that response has been quote, mind blowing. We have never quite seen the conditions of different Member States are very different except they are meant to be setting a onslaught of ticket sales like we have seen in frozen. Single Monetary Policy. We went on sale this summer and you think they will change sold 10,000 tickets within the first hour and over 250,000 the arrangement and become the tickets in the first 24 hours. United states of europe . Know and there is no support we just finished a fiveday spin and played to 112,000 fans, it for that. As you can see this year the big has been mind blowing. Change will have to be very before we get to the next clear recognition on the part of the leaders of europe. That looking ahead there will be sections, i now know more about two different categories for frozen than i possibly needed members of the European Union, those in the euro area and those to know. It is a revolution. Not in the euro area. You can sing the big song those not in the area will from there. There is not enough money for require a degree of communication which is holy and charity for that. Get it on twitter. Appropriate for those not in the what is it called . Area. The euro area being the european let it go. Not that one, the silly one union is a big mistake and will only lead to bigger trouble down about do you want to be a the road. Dallas mervyn king the former snowman . \ the producer of the show governor of the bank of england. That was mervyn king the really does like moving from former governor of the bank of frozen to continental air. England. After japans a day eurship. Pren confirmed it had slipped into recession. Abe might call a snap michael hayman, good to have you with us this morning. Election and might delay a scheduled sales increase and we are at the center, the hub, announce new measures to stimulate the shrinking economy. That is a gamble, if the why be interested in getting beyond london for opportunities . Election reduces his majority he were not friends. Would be vulnerable to leadership challenges and postponing the new tax would very well, this weaken the efforts to curb year has been an amazing year in soaring national debt. We will give you all the details of abes next move right here on the u. K. , last year we thought it was extraordinary, 500,000, it will be 600,000 this year. Bloomberg. Security, ifshi registering in the u. K. , it is a great liquidity of enterprise if could advise mr. Abe and talent. That is not just in london, it is around the u. K. , when you see he could listen to you, what would you recommend . Top priority in japan is the future plans for travel it is a compelling mix. Aris and china are to undertake economic reform. A lot of micro reforms and that would be the greatest stimulus investing in birmingham and we of all. Will be so much more able to a lot of the apparent strength join the dots between towns and going back a year or two to the cities and i think the business japanese economy with consumers and businesses to increase proposition for the u. K. Is looking healthy indeed. It is all about scale up isnt it . Spending to beat the sales tax. As it wont happen you are tweeting out a report yesterday seeing a swoon in the economy, that this is the new buzzword. It is not really a swoon it is what do we still need to make that happen . Just getting back to all this because the big prize anticipated buying. There is report of the 1 shift its the essential component of in scale up, and about a quarter any economic growth. It seems this specific issue million jobs in the u. K. Economy. That is the challenge and we have absolutely ticked the box on whether the sales tax increase should happen, adam in terms of staff up formulation posen of the u. K. Monetary policy center says it is the but we need to free it up. Potential and of least of the worst options, the debt issue will go away and the young businesses but there are sales tax has to go up at some things that could be done and something i would like to see, particularly is the Government Point and he thinks you should get on with it and do it. I would agree with that at and nielsen statement to bring about a corporate venturing this stage that to abandon the stream. Sat unused inunds program of fiscal stabilization Large Company accounts at the only adds to the uncertainty and moment. We had a scheme for years ago and there is a parallel with the that is negative. Two big disappointments. Passive investment scheme, it would allow corporate investments and i could really the second has been the failure of the investment to pick up balance out the growth of the sea and give young of vc and despite zero Interest Rates. One reason why they both have give Young Companies more options. Not happened is that they dont is that on the list of what have confidence on what will they want . I think incentives would be a happen next with all this huge monetary experimentation, so i good thing to do. Atld agree to abandon it freelancing running small firms, right now the rules do not favor them. Youre only allowed to have 10 this stage only after the reporting bank days during your uncertainty which is probably negative. Maternity the book before you if he goes to a snap election become taxable. , he said yesterday the big a group of people that i support, young working mums who abbe is that mr. Are running their actual wasting time. Businesses, we should even the reform andack on Playing Field and it may incentivize them to start their own businesses. Small pieces of structural we were talking about the reform, is he wasting time with the election. Wasting time if it is not qataris and the chinese buying into birmingham, what is used to galvanize support for the harder economic reforms. Interesting around the scale anwere just going to have ups . Where are the hubs . Election under sales tax that is a wasted election. Springboarden the describe londons startup map for us. I think 17 of the top 20 to an agenda of reform than it would be different but it seems that will not be was a last election startup locations are in london. Springboard for reform, what has changed echo what has you can look at london boroughs, every london borough will be a changed . Nothing. Significant player in terms of startups. Areas look at five london it doesnt seem to be the way it is shaping up. If he ends up with more support and a bigger say in what they had more startup activity topens, does that enable him than the whole of scotland put together. Prescription map a take on management with the and say is technology here . Businesses that had wanted to listen, to take on labor unions, it is a Thriving Center right you think that could be even if it is not on the ballot take . Across the city and it shows great attentional. Not everyone has to be in the it could be that he gets more of a mandate . Center anymore you can look at mandateready has a big boroughs where you have a businesses and i think that bodes well for where the capital to do that so it does not explain why an election is needed. Is going for the future. It could be from a wider do you say the same when you perspective from japan political write in the york shire post. Stability to have an election now when the opposition is sheffield born and feeble to reassert a oneparty control in japan, it is not a ofd, son of sheffield, son very good image. Here is somebody who has a the city and i think there should be very strong northern fairly scathing attack on cities in the u. K. What i dont think i think we quantitative easing. Need to have phenomenally strong the results are that it was all capital which is really making ought in japan . Such a great impact on the global scene. I think the potential for northern cities is phenomenal. Yes we had a little bit of when you look at the engineering and science opportunity the cities have that could be a gdp spurt which may well have happened anyhow given the boom valuable opportunity for those sorts of businesses that we are really just scratching the surface of. That is a great way in the u. S. Auto sector. In the u. S. We had the weakest the future of awareness should be and the government can get economics expansion ever after a great recession. Involved and bring people like qe was meant to be a big boeing and rollsroyce merging experiment which was going to together with high potential young businesses that are innovating. Creek to have you with us prove that fast recovery could this morning. Take place after a big recession and we have not had it. Great to have you with us it begs the question, will the kenzie and evil genius this morning. Michael hayman. Coming up, do you really need genius of the obama a business degree to get a good job in a bank . Maybe not. There is an hour before the administration meet its and in the 2016 election . Thats a good question, we have continued expert mentation under janet yellen but the big monetary question beyond that is what happens to Federal Reserve reform, Monetary Policy in the u. S. , after 2016. Brown head of economic research. Welcome back to countdown. Start of european trade but japan is in a recession. What is it about gravity and banks . Art school fees are too much for common people, but the story goes on here in the second section, it puts humanity back into business. This is about the cultural , and apparently what has been to blame is too we are joined by the security much linear thinking. According to the bank of head brendan brown. Scotland which of launched a recruitment drive targeting we were discussing the u. S. They aresubjects, experience with quantitative easing and the japanese experience, there are differences and similarities. Talking to economist for too much linear thinking and that successful ithow summarized a lot of it, perhaps artists dont think has been in the u. S. , how vulnerable as quantitative that way. Theyre prepared to ask easing left markets right now . You pointed to a number of areas questions about what we should have had during the financial where it has pushed prices up. There is a lot of crisis and a lot of people saying, but that edwards and her stand. Vulnerability, much froth and words that in many markets particularly the highyield credit markets and understand. Stem need a lot more the private equity boon and large parts of the u. S. Economy graduates. And Global Economy have been met dont think i ever spurred along by this froth, so anything that happens to cause anybody who was into art on the trading floor. Some sort of setback will be negative for u. S. Economic outlook and the global outlook. Whether theabout i got myself into a hole there, this is the word of the year economy needs markets or the going into the Oxford English market needs economies, i would say at the moment it is caused dictionary, vaping. By these monetary policies. Wasnt that always the way it a number of words was going to work, affect prices first and then up to other every day. Have you vaped . Elements within to trickle that through . Now everyone and their dog to stop smoking i used ands that it is occurring vaping. Oxford English Dictionary word of the year. If everyone knows inflation is happening it does not stimulate go. The economy. That was a bit sudden. Everyone knows there is a lot of i didnt want to give you froth in the market so the asset time. It was a friendly today, in prices isnt stipulating because everyone is worried about what happens when it is gone and goes glasgow the oldest international into reverse. , for me thehe world youre not seeing spending, what youre seeing instead is drawing back equity and paying back dividends. Most memorable one was the euro your clear there is a 1996 when gaza scored. Connection between stimulus and cheap credit and that is driving the market but when you look at the risk, you said clearly that this sort of optimism we had when the republicans took charge of congress is misguided, you talked what some risks, identify those risks. On a scale in terms of importance. In a big picture i would say looking over the next 18 months to two years the risk of serious global downturn is 35 . The possibility of some economic miracle with a businesses start spending and productivity grows that may be like 10 . Somewhere else it is 40 over the continuation of the same which is fairly mediocre. Is that the new mediocre . Having said that it is a 40 probability. There are other big scenarios about that. Looking at thee oil price cut and how that might stimulate the economy but the big thing about the Oil Price Collapse is the stage of asset price deflation. It was all asset price and commodity punched up in the first stage of qe and now theyre back. About Deflationary Forces in the eurozone, we have cpi data released from the eurozone and we are moving further away from that 2 level, we should stay at 1. 2 year after year. How much of a worry is the deflationary worry . I think the fear of deflation is a phobia. The idea that we have to have 2 inflation and if we dont get it that is deflation, that idea only crept into economic discussion 10 or 15 years ago, we had 100 years were there was considerable periods of price stability and nobody complained about inflation of less than 2 . The central bankers by concentrating on the 2 target of course they ignored it when it was way above 2 and they will ignore it when it is way below. I think in general terms and coming back to the United States, if they had allowed the inflation rate to come down to 0 or 1 rather than pushing up the dollar and commodities, that would have been another a better cost. Japan, do you think they realize, stimulus, high taxes, no growth, will they pay the tax . To get onpan you have with economic reform and by having these prolonged episodes the biggest risks to growth. Of low Interest Rates, what you drug, whyt is like a eurozonesout the would any government take on the problems and how to fix them. A singleoblem is risk of reform and all the unpopularity if they can find in the bondt 0. 5 Monetary Policy does not fit all countries and facing up to that might be the first step to thinking through how to get out market. These low Interest Rates are of this problem. Abesan waits for shinzo empathetic to economic reform. The we may have arrived at the limit of what those markets first move. Will it be a snap election . Will speak to carolyn can do. Mario draghi says it can do more if Structural Reforms are implemented and he is emphasizing more the limits of mccall first on bloomberg. Monetary policy. If mario draghi is creating an asset Price Inflation problem in europe where the italian and spanish governments can raise funds at lest in the new york welcome to countdown. Treasury what is the impetus to take on economic reform for france. Havee european auto sales it is only a crisis environment where economic reform takes place. Thank you for joining us come across the tape. Today. Ng on the headline, coming up in the next hour of countdown. 6. 2 . Fourteenth street gain. An interview that you do not want to miss. Just over 6 . 2014 said to be the first year rival byet beat their we see a rise since 2007. Read now doing well around 10 luring the business travelers . Well, arounding us first for a bloomberg interview. Joining the conversation on 10 . It is not just the fiat seals that are doing so well but take a look at jeep. Suv like the twitter, are you one of the easyjet travelers . Jaguar land rover. Jeep sales up by about 75 , tellis what you want to know more about and what you want to hear less about. Which is just extraordinary. Still to come on the program, that is coming from a very low price. Focusing on film. We are talking to analysts and they are saying the average car find out why sony surged in average age of the tokyo today. , thelcome back, fuel cells car is pushing eight years. 13 of plusaverage you have super low financing. It is a rational decision to trade in their old cars. They can save because of improvement in fuel efficiency. Pew show just up 1 . In france, down by about 4 in terms of car sales but the u. K. Secondbiggest market, up 14 . Spain up 26 . Was it is about a decade old so i was relieved that the average age of a car is around eight years. When it breaks down i will leave it on the side of the road. And call the car assistance people. Ryan chilcote with the details of the car story. We have these numbers from easyjet. Pretax profit coming in above estimates, 580 william million 580 million pounds. A pleasure to see you on the program. Help us work out where the sector is headed from here if you could as we keep hearing plenty of doomladen commentary about the state of the years in economy. How much is that weighing on your bookings at the moment . We have driven all possibilities because we increased our passenger numbers and more of them are flying with us more frequently. We have increased loyalty quite significantly. 57 of leisure passengers book with easyjet. 72 of business. Loyalty has been a key factor in ourining and retaining customers is important. We have done a big engine deal. Costs have been flat this year and that has been a Strong Performance but passenger numbers have been driving revenue and revenue is up 6 . That is a very Strong Performance for easyjet. Because of our low fares and friendly service. If you look at the sector, there is a lot of gloom and doom about the euro economy. If this is a resilient is this answer recession which we have experienced in europe the last or four years, easyjet has done well. Is the reason is its great value. It is easier for us to get more whene to try easyjet things are a bit tougher. That is the context going forward. Strong,ard bookings are future for powering cars . Japan think so. Nearly half sold for the year. The advanced technology does not you say in the statement that you have opened up clear skies come cheap, the price tag is between you and your 63,000. Brian bremner took the new car competitors. I want to talk about one of for a test drive. Those and that is ryanair. Marai. Is the theyamorphoses and toyota fuelcell vehicle, it changed read you are saying a means future in japanese it different competitor in the ship looks like something off the set of this newly reinvented ryanair of bladerunner. . Were not really. When you drive it there is little vibration, it is very is overlap that is quiet. Very low and also because we one advantage of the hydrogen focus on what we do and we do what we do very well. We have really focused on takes aboutit only five minutes to fuel the vehicle loyalty. We are running a trial that has been very well received amongst our high street and you have a range of 300 miles. A little bit longer than the current evs. Highfrequency passengers. Issues for consumers can go through the airport is the safety of Hydrogen Fueled cars and toyota what a great incredibly fast and adding link to check the casings fasttrack security. We are very focused on our Customer Journey and our surrounding the hydrogen tanks. Customers and making it as easy if there is any sign of trouble, and affordable for a passengers sensors will immediately deplete and by doing that, we will the hydrogen in some cases and continue to keep the gap between the reinforced carbon has been us and anybody else and by that tested in a variety of ways and the even fired a gun bullet into i mean all the legacy carriers. If you have used easyjet it to make sure it would not explode. One of the big challenges recently our Services Better is power stations. Than the legacy carriers. They require a big clear. Us is very infrastructure to get these power cells running on a massive it is very customercentric and scale. So in japan the governments we are doing well as a result. Has the government some of your competitors are helped subsidize that. Going through turmoil. That has been to your benefit ae of the advantages from and other lowcost carriers. Fuelcell vehicle is there are zero co2 emissions, and fact the as they regroup do you think that any of them can provide a only thing it emits is water and reinvigorated higher level of competition if they try and it will come out of the tailpipe. The fuelcell has proven tackle some of the problems theyre going through the moment . Controversial in its own way, there is a retrenchment and restructuring. Volkswagen has been trash talking it, they obviously have taking capacity out of the market. Others are trying to rethink how a commercial interest in their they arevestment and they do shorthaul europe. Trying to cast a line of doubt about the viability of this deal. The battle of market no one can become a lowcost or the cost operating model technology. Later this morning we will be overnight. It is very hard work and it is a bringing you europes car sales relentless focus on Operational Excellence and efficiency. For october. That is at 7 00 london time. If it is not in your dna it is a much harder thing to deliver. Overll we see these all we are as you know relentlessly our roads . Focused on being on time and that is not so bad is it . I dont know. Being reliable and resilient in terms of disruption. Are you very cautious about and itand focus on that slipping . Never mind cars, lets give is hard to replicate. It is hard to replicate. You company news. Our Network Connects all the 6 in the recession major cities in europe. After the ceo said the company we have the best network in europe whether youre a locals is targeting sales as much as carrier or legacy, that is difficult to replicate, getting 11 billion out of the movie business. A long time, it takes a long Sony Electronics arm is time to build. You have mentioned the growth still underperforming but he says he is confident it can be that you have seen at gatwick turned around. Revenue in the first half has airport. Where are we on the expansion of capacity in the southeast and of needing more shown an improvement in all areas apart from mobile and personal computers. Our efforts to transform the runways by the time the decision is made . Company are starting to bear i very much hope that davis fruit are in revenue at the commission, recommendations of Electronics Business is still are taking i hope they are low and the unit has a high cost structure. I will not give up on the drive taken on and implemented. To change. Samsung heavy industries and it is about politicians of all parties. Engineering both the we have been talking about runway capacity for a very long time. Client to be sold. There was a proposal by government then to build a six is due to be completed by heathrowrport because december in the form of a stock swap. Told by financial is getting congested. I do think this has been an ongoing debate and there is a crunch and it is at heathrow. Times that he is standing down there were airlines cueing up as the most senior advisor. And we have to face into that. The former chief executive of bp said he had achieved all he wanted in the role and says there is a limit as to how much the government, the airport and discipline could be injected. Easyjet chief executive all the stakeholders are fully aligned behind that. That is what we need in the u. K. Will be live, we will look ahead to take on board recommendations to their earnings after the and everyone get behind it. We need some certainty about the break. Welcome back to countdown. Future of aviation capacity. That is around the political relationship between the u. K. And the eu. Relying on open skys agreements, relying on the openness of the european economy. What is your stance to the possibility of the u. K. Exiting the European Union . We would want to stay in the eu because it is good for business. We have access to 500 Million Consumers in europe because of the eu as easyjet. It is easier to do business in that framework. You need to get rid of the bureaucracy and the red tape which is what everyone says about the eu but we believe a reformed europe is better for business 4s. Single european skies would still exist so i do not think it is a direct threat i do think it would make business much more difficult. We are a child of the eu and we were born from regulation. That is where we have benefited greatly is easyjet from the eu. There has been a bit of speculating about what your future might hold, where your career might go. Suggesting if you like a challenge you might like a challenge in the retail sector. The aviation sectors pretty challenging. I love what i am doing at easyjet. Keep doing that for a long time to come. Thank you. The ceo of easyjet. Coming up our next guest says is european car market recovering slowly but surely and he sees a bright spot in a country you would not expect. Joining us for conversation coming up next. Yen is the only story in town. 1. 16 to one point seven is where we are on the dollaryen. . Ill it cancel out paul krugman has urgently suggested the laying and adam pozen suggesting to crack on. Jpmorgan says it may be overboard but 1. 2 is on the way for dollaryen. Andstance on the upside 1. 1795. Here is ane emergency meeting by the central bank and it is suggested that they raise fuel prices or reduce subsidies. 7. 5 since november 2013, we are in an emergency meeting. These are the Bloomberg Top headlines. Has said thevernor biggest challenge for the European Central bank says conditions are different and Member States except the bank sets a single Monetary Policy. Mario draghi says bond buying could be used to stimulate european economies and though it might be under unconventional measures they could use, the forecast due next month is likely to show a weaker outlook or growth in the euro area. We just had the european car the day after japan confirmed it signals breaking across the had slipped into a recession, bloomberg terminal. Thepean car sales up in abes options include calling a month. Were on for the first annual snap election and an increase in gain since 2007. Joining me now is our guest. The sales tax. Lets move on to the corporate he is Senior Consultant over at willa because easyjet frost and sullivan joining us from paris. Thank you for joining us. Announce its results at the top of the hour. These are a good set of numbers but when you look into the detail you see that discounting is up and there are parts of europe under pressure. So, Carolyn Mccall, when she true. If you look at the biggest reports in 28 minutes time, what will they say . Us a narrow range market, germany. We expected the market would be in october for what to expect stable. What is interesting is spain is for pretax rockets and that is at least a 20 increase on last year and very good numbers based growing at rates close to 18 in on the strong and of the summer the first 10 months. And of course positive parts like the strike to air france. The focus will be on the outlook for capacity, heat sold and if remember in 2007 they were revenue perceived. Selling 1. 6 million cars but in rivals do, ramp 2012 it was 700,000. Up operations . We heard from them week ago were seeing good recovery in europe. And they said they will be focusing on the winter. Winter period and growing 12 in germany that we have seen. Traffic. They said they expect fares to those price cuts and youre talking about nearly a 12 fall and easyjet will tell you they are not competing with discount. Near 15 discount off the rack ryanair and the overlap is minimal and they are competing rate. With the legacy carriers but and the french coming in at 14 . This is not very strong pricing easyjet is also adding capacity so you have to wonder what that will do to the pricing power, is it . It does not smack of a very environment and how capacity resilient arc it. Hold onto tothey during the winter. Well affect easyjet. We spoke with the ceo of their numbers. They are trained to save and to preserve their market share ryanair and he told us that and that is probably the reason why we are seeing this 6 growth of 10 months in europe. Easyjet will need to what is clear is if you remember differentiate themselves, how will they . Ryanair is quite candid that 2007 in europe, you would sell 15. 6 million passenger cars. They are copying everything what we have seen for this easyjet has done. Years we will get to 12. 5 its good business. Million passenger cars which is still 20 below the levels we absolutely and the ceo is 2007 four couple of candid about that. Carolyn mccall will tell you their focus is on the primary reasons. One big reason is unemployment airports. And revenues are stagnating. They have a huge position at they are declining and one of the first cars is gas costs you dell with now. Gatwith now. Reduces transportation. When you own a car it cost 4000 where like that give them euros a year. Tell us about russia. Business travelers want to travel with them. He was playing up fiat is pulling out of that market. The reliance they will place on what does that say to you . If you look at russia following the sanction they had those prime airports as well as as you see what the legacy carriers retrenching, some of those primary slots are getting in july, august, and september, a little bit more affordable and the market was down 20 . Russia is the Second Market that is what theory is with 2. 5 3 million suggesting. Suggesting. Y was cars. This is something carolyn they have tried to limit the because itoctober mccall is keeping a sharp focus on. She will say when it comes to business passenger, these anticipate the relationships are something they itked for years to develop, buying of cars but obviously, is is not something you wake up and suddenly have a revelation that people dont like us and we can russia. Oduce locally in fix our attitude and the home of us six months later. You have to remember ryanair has only done this for a year and a the impact of the devaluation of the ruble is strong. Numbers are looking good but it is still early days for them in announced because sales terms of her relationship with were declining as much as 57 an x the corporate hard they would go out of russia. I am looking at the brand visits passengers going to fly with them in the same way . Split. It looks like ford and gm. Done . her job the dubya way above done . Ob peugeot. Hou herhe seems happy and low is coming from a fairly daughter that she is an and it is and she likes a challenge. She is an ambitious woman base that there is that distinction in brand, isnt there . This brands are coming with some good product. Is product they have and she likes a challenge. You can ask or later this definitely driving their sales. Jeep is doing very well. Morning but she seems very happy theyre coming from a low and right now. Even the shareholders seem to like her. They are selling Still Limited her share options are volumes in europe. But clearly that is the kind of probably worth a pretty penny more than when she was given them. That easyjet ceo brands that are doing better than others. Volkswagen sold 5 million cars interview with Carolyn Mccall in 23 minutes time. Do not miss it. In europe which is really i think i did the math wrong, significant. Now trying to read the 10 it is that it is at five past million target worldwide. It is a managed structure. 7 00, half an hour. Bloomberg rosalynn sheer is the figures we get for october were a bit disappointing. Here with more. With only 3 growth of the what is happening there . This morning they did move to previous month. Europe interesting is remove some of the obstacles around the Office Buildings and might be the fastestgrowing car that is in the part of hong market in the world ahead of china. Kong. They were executing a court electric car injunction to remove obstacles blocking entrances and that is revolution we see, we see tesla because the owners said the entrances would be block and and we were running the package about biofuel cars. Affecting their business. The building is on a side road will that transformed the auto that leads onto the main protest market or is that a 10 year plan . Site. Dozens oftill have were the time being, the volumes are limited and confidential. Protests and protesters on it, now this building is on a corner 6500 euros to buy this nearby but not on that main reachedcar in the sales site. The protesters actually had largely removed many of the euro. 5 of the market. Barriers themselves and they if there was no incentive the market would be zero. Largely let the bailiff move in increases orf oil and remove the barriers already there. The availability of oil decreases, people who move tookrotesters actually through such cars it is too away some themselves and move them to reinforce the main expensive and there are a couple barriers. So they would allow access in of drawbacks. And out for cars and the area of economy and the like of it the Office Buildings that the injunction was granted four. Infrastructure. We will leave it at that. There is also a lawyer who is advising them as part of the Senior Consultant at frost and prodemocracy camp and he said sullivan. Focusing on films. Publicy in masses of find out why sony surged in tokyo today. That is after the break. Order that he decided this was, the government could take matters into their hands and not leave it up to the courts. Here is what he had to say. An individual can seek remedies for civil proceedings and it is very unusual. It is very odd. The only explanation is at the administration has lost its confidence because of a lack of authority and legitimacy to enforce the law against the company. Rosalynn, will other sites be cleared . They have been taken out in another big protest area, in callaloo across the other side ,f the harbor in kowloon across the other side of the harbor. Was taken out in a paper detailing court injunctions, we know action is coming soon but do not know exactly when that will happen. Stay with bloomberg for a little bit more on the interview side. The news that matters. The billionaire who made his fortune betting on distressed assets. The pulse. thats where he will show up today. Ask . At would you let us know what you think and what you dont like. I can tell from twitter that our next guest is already here. Michael hayman will be joining us. In celebration of global lunch per newer ship week Global Entrepreneurship week. Time for todays Company Different Member States with a single Monetary Policy according to the former governor of the bank of england, europe mervyn king. He was the he was speaking in florida. He began with a frank view on the risks the eurozone poses to global rates. The euro area is the biggest risk because i do not think the leaders in the euro area have a true vision of how to cope with the problem. The consensus feeling is that germany needs to step up and draw domestic demand and the bundesbank needs to change their tune. What would you say to your former counterpart . It is not for me to speak and get them to change their tune despite this success in reducing sovereign bald cash bond yields. The side effect was to push up the euro and that has done damage to france and italy. The challenge for the ecb now is policy thatnetary would allow the euro to weaken sufficiently to give france and italy a chance to start seeing a recovery and growth. I must say the challenges are truly in our mess and i do not believe that the optimism that always comes out to ministerial meetings in the euro area is the to be concerned about where they are. What do you think the next steps should be for the ecb . The big challenge or them is conditions in different Member States are different from each other. Setting aant to be single Monetary Policy and that is the heart of the problem. To become arope try United States of europe . And there is no support for that around europe as you can see from european elections this year. The big step forward is there needs to be a very clear recognition on the part of the leaders of europe that looking ahead there will be two afferent categories as of member of the union. Those in the euro area will require a degree of coordination if not explicit fiscal and Political Union which is wholly inappropriate for those countries not in the euro area and then needs to be recognized. The idea is a dangerous mistake. And would lead only to bigger troubles down the road. King, the former governor of the bank of england speaking to olivia sterns. He is saying the focus should be on policy that will get the euro down. I thought Central Banks were out late were supposed to outwardly target currencies. Been 506 know it has days since he left the bank of england . Still to come. Arrows does shinzo abe have in his quiver and will any of them hit the target . As the japanese Prime Minister get set to announce more measures to help his countrys economy. Stay with us. Welcome back. 7 30 a. M. In london. The yen is the focus. Where waiting for shinzo abe us conference. It has given back. Call a snap election, what size with the fiscal stimulus be. Newswires are saying three chilean yen. And it will be economic suicide therding to one analyst. Key level is this. 117 95. Had we do not often talk about this currency. The indonesians are having an emergency centralbank meeting. Number two they have reduced the subsidies on energy to the economy leaving the more room to stimulate. 7. 5 and counting. These are the Bloomberg Top stories. The former governor of the bank of england is saying the euro area is the biggest risk to growth. The trouble is a single fit all policy does not countries in facing up to that might be the first step to thinking how to get out of this problem. Mario draghi said bond buying could be used to stimulate economies. Buying sovereign bonds might be among unconventional measures the bank could use. Due nextforecast is month. Unlikely to show weaker growth. And preparing to outline the next move at a News Conference confirmed it japan could slip into recession. For more on that story we can speak to our Bloomberg View columnist. Tell us about the feeling in japan right now. How do people do the possibility of a snap election . For we journalists who realize our Holiday Season is dead, there is a lot of confusion about the extent to which the economy can be back in recession. This is the sixth recession in 20 years. For all the excitement and the brouhaha many households are genuinely shocked that here we are back in recession and it is a reminder that the japanese are looking to the Prime Minister to theis job and restructuring economy. The bank of japan has done a great deal to pump my into the security into the economy. Does he need to do this election to give himself a bigger mandate for other reforms or does he not need to call an election at all question mark what is happening here . These are very good questions. This election is unnecessary. He has a strong mandate to restructure the economy. Hit he just has to do it. He has been slow about getting to that process of restructuring and deregulation. About hision is party. I can say that. My back. It kind that his mandate him and had tears because his Approval Ratings are falling. The economy is back in recession. He raised taxes on the japanese people. The idea of a bigger mandate is a fake ever reach. This has political theater. Japan will be campaigning focusing on an election that is not necessary at the economy will not focus that it deserves. Cliff stearns emerging markets. The real plummeted to a new low. Lets get more from our analyst. Thank you for joining us. How much is the decline in the petrobras with the scandal and how much does it have to do with the disenchantment of investors . Resulte is the election and investors do not see the chance for reform so growth will remain low. At the same time commodities demand is coming down and they have the scandals that keep coming up regularly. It looks very vulnerable. It has not had a resounding victory. Can she pull out of the bag . They raised rates. What else to we want to see in 2015 . Of things. Ee a lot what she should do is to take steps to improve the investment climate. Brazil will have had negative investment growth for several years. There will not be much support for consumption. Brazil needs this go reforms and that will be difficult and growth this under pressure. Buying less of brazils commodities. She should do a lot of things. What she will do is some adjustment on the monetary and fiscal sides to try to restore some of the lost confidence with investors area day will a marginal and cosmetic. You talk about the challenges the problems she should tackle. You said some of these reforms would become inevitable. Will her hand before forced at some point . The new the way that the real is happening pressure will be so high on these policymakers that they will have to do something. At some point the flows will turn negative and currency can go weaker. Which will have an impact on inflation which is already too high and growth will come under more pressure. Growth in brazil has been nothing for quite a while. Still aan economy with rather young population. They need to grow. They need to go somewhere. In the category of emerging markets does it have a grim outlook outlook or have brazil is the rim camp. Who else is in its camp and who can we be a bit more sanguine about when it comes to emerging markets next year . The countries that are in the grim are the client the exporters who have not done their homework. Growth is low and inflation is already too high and fiscal reforms have not been coming through. Of course. A an obvious one. The ruble has been particularly weak. You mentioned indonesia. That is a place where there is chance for reform and that is coming through. That is a country where policymakers tried to take againstof their policy the bed is maybe a positive exception. One of the positions we had was about energy prices. It depends on which country you talk about. There is commodity, energy exports, and big importers. India, turkey, korea, china, they need Energy Imports so they benefit. Think you for joining us. Thank you for joining us. You can join in this conversation or any other on twitter. That is where you will find us. With Carolyn Mccall. We got it all from anna. To be part of it. Easyjet is a child of the eu. Price cuts, new models, will . Mor elp shift the metal more to come. We are talking autos. Time for todays bar chart. Have investors fallen out of love with the pound . Lets look at the pound against the dollar in the last 12 months. Very clear what happened through july. The july 2 high was 171. That is the green circle. The low was just a few days ago. Hedge funds were more optimistic area that is after the borrowing costs would rise faster than expected. He flipped flopped a little bit since then. Hedge funds hold the most bearish position on sterling versus the dollar and more than a year. The last time that speculators deserted britains currency so fast was mid2013. That was shortly before it tumbled to a three year low of 148. 14. It is at 156 1. 5659. The firstpenciling rate hike at the back end of last year. Possibly the end of december a few months ago. Investors were penciling in a rate hike as early as august, even february. Back in july investors are thinking rates would be raised. Tied to that is concerned about our main trading partner. Investors are starting to caption question the extent to its the u. K. Would be able to decouple from the eurozone. Another worry is political uncertainty. Pound andrish on the as we roll into 2015 we might think more about Political Risk and the may election what that s. An the question is what happens , one dollar 59ng by next june. That is the median forecast of more than 50 predictions. Analysts are pretty much struggling to keep up with sterlings decline because back in july the median forecast was 170. They are cutting projections as we speak. Keep a nylon and i on sterling. Have investors fallen out of love with the pound . That is the question. Aboutnot talking currency, we will talk about cars. They are doing wonderfully. Lets talk about cars. They had a good month. Feature . The standard it looks like were headed for the first year where we will get an annual rice since 2007, but it is a big climb ahead of us. Last it was the lowest car sales in europe in 20 years. We should not forget that. Fiat and chrysler up. Not just because of the fiat brand but because of chrysler, because of jeep sales which are being brought here to europe. That is from a low base. You see a jeep turnaround london not that often. It would appear that fca is doing well. There is a lot of people driving those. And very narrow streets. The jaguar land rovers can be sold overseas on the cheap with the pound doing so poorly. What else is helping . The average age of a car on the road in europe is almost eight years. Pushing eight years. I do not feel so bad. I was really surprised. I like how your comforted by that statistic. A little bit older. That is vintage. Quick someone did walk past and said i have not seen one of those for a while. And analyst said do not be fooled. It does not mean that you are saving money because there is big discounts up out there. About 12 of 13 . Has improved. N i do have a diesel. You are a polluter. I thought i was being fuelefficient. Forefront of my mind. The other thing is financing. We should not remember that it is not a complete the rosy picture. France out of the 2. 5 countries, france was theyll the one it and it was one of the countries that saw decline. That was fascinating. That is where it was suggested that europe could from china for the first time in a number of years. He is talking about western europe. That would be extraordinary. What we have is a flip. Emerging markets were supposed the problematic western europe seen. I do not know if we can say that western europe is exactly rosy. China is not as growing as quickly and russia is really in the doghouse. The car market contracted by. Bout 20 per month fiat, sales of 20 in western eu effectively but the just pulled out of russia, got to have a bit of an impact. Notr problem there is it is the most popular brand. It is not just about economics but also when you think of currencies they are still importing their cars. Taking a hit or they are asking consumers to pay an awful lot for the car considering the ruble has come down 30 . We will leave it there. Another good month of sales for variety of reasons. Were heading to the trading day. We will be up a little bit of the start of European Equity trading. All that looks gloomy. Take a short break. Sector isation challenging. We have to deliver every day. Were doing really only for our customers and we intend to keep doing that for long time to come. Mccall was carolyn speaking to us earlier. She said she is staying at the helm. Europes secondbiggest Discount Airline posted earnings by more than 1 5 and will expand capacity is much as 5 this year. Minutes away from the european open. Caroline hyde is chomping at the bit. New ceo. There has been a game of shares going on. Things were looking dire. They found a replacement. Eir and she is coming from john lewis. Interesting background this lady has. She was head of retail. She is head of retail. She has a wealth of experience. She helped turned it around. Nonfood sales declined. One of the big phenomena we have been covering is in the big chains on high street. With a rather old guard retailer at the helmet. B and m European Value retail is the name of the current of the company. Listed on the London Stock Exchange earlier this year. They say things are stellar. Sales are up. Profits of 34 . Interesting rumors that they thosebe buying up one of old shops. They are getting about 25 . Doubley they want to in size and the u. K. In the next few heres. They have plenty to choose from. Thanks for those stories. Stay with us. It is on the move your cothere will talk autos and how the market reacts. Car Sales Numbers and a preview of the next move from shinzo abe. Stay with us. See you tomorrow. Welcome back to on the move. I am Jonathan Ferro Just Moments Away from the start of european trading. Bank of england governor tells bloomberg the toion is the biggest risk growth and he does not think leaders have a vision to deal with the problem. Speculation is increasing that today there will be a delay to the next scheduled tax hike and snap electionor a to strengthen his mandate. The japanese Prime Minister speaks early this morning. It just beat the estimates, budgets second against airline says they plan to boost capacity i 5 this year. That is one stock we will be watching ahead of the opening. Points, stacks up 24 points. Yields in spain headed toward 10 , a remarkable move and woman look back to yesterday with may look at, they buying sovereign debt. The equity markets turning higher this morning. Manus cranny. What amount of stimulus will abe deliver to the market