6 00 here in london. Guy just a bit of a mistake, we are terribly sorry. Careless talk. The asian markets have had an interesting session. Caused by the fact that the people are questioning the great ability, starting to put out old comments linking shenzhen and hong kong. The stock Market Reaction is quite clear. Is very cleartion in the Hong Kong Exchange read he saw a big spike in the Hong Kong Exchange stock price. And that came up when we had their vacation that no, we had not found verification of the link. That is still being done. We will get the most from david on this. Before these comments were posted, we have to factor in a decent set of pmi numbers. Guy the ing numbers, plenty of things to think about on the corporate front here in europe. I am looking at the Third Quarter net income numbers, it has come in at 1. 06 billion euros versus the estimate of 975 million euros. The allimportant ratio year, fully loaded after the Third Quarter banking 11. 3 . As for the group, coming in at 12. 3 . Ing says that remain stable. I have the statement in front of me. It says that the Third Quarter results appear to be driven by Strong Performance in retail banking, lower risks, and improved margins. Risk actually declined on the back of economic recovery, that is according to the statement. Price,look at the share not reacting yet, but i can tell you that ing is up 21 year to date. Back to you. Anna we will be speaking to ing cfo at 6 45. D 3 ,a fully loade selling shares, are they going to get that back . What is going to happen . Im interestined to dr. Patrick about that. Anna david is standing by and hong kong. Where you want to start . David lets start off with a good picture that we are seeing. Delegate to the confusion that happened about midday. Shanghai, given the story were just talking about here. Asian stocks up over 1 , off of the high from the day. That being said, it is a macro story. I cannot seem to recall the last time we actually had flow this positive in a while. We woke up very good, auto sales very good in the u. S. Best in 15 years. Narrower thanrted expected trade deficits. And you had the private services pmi for china coming in at just under 52. As far as that part of the economy is concerned, it is doing quite well. Said, lets get to the other story when it comes to the Hong Kong Exchange. Kong,ning, here in hong the attention of investors this article posted on the website. Dated today or yesterday, which had comments coming from the governor on the stock connection between the Hong Kong Exchange and the other shenzhen exchange. Clarified byments the governor, that they were taken by a speech from may. Following that, you are looking at the stock price here. A came up during the lunch break and said, we do not know why the stock is moving this much. Theres been no agreement just yet. And really, i guess the idea from the market right now, it should not be this year. No idea this was going to happen. At this point, we are still up for. 5 ,. That is a story when it comes to this. I think we still see gains, up over 1 . Back to you guys. Guy thank you very much, david. David joining us from hong kong, an interesting day. While he was talking, we had forecasts come out. I mention that because it could be crossing into european tobacco producers. See how they react on the back of that. Honda,lso numbers from 164. 8 billion yen. That is lower from the car manufacturer. Guy let us move beyond dieselgate. Faulty omissions for the first time emissions for the first times in petrol cars. Our International Correspondent hans nichols joins us now from berlin. Not just diesel drivers that happens to worry about. Hans guy, that is exactly right. Gasoline drivers, as well. Though volkswagen says that is a relatively small number. Let me walk you through the timeline. About 12 hours ago, 7 00 p. M. , volkswagen self disclosed that they had an additional 800,000 vehicles that were affected by a regularity. Crucially, this has to do with Carbon Dioxide not nitrogen oxide. Nitrogen had been a scandal that affected those 11 million vehicles. Or could be overlapped on the vehicles, between the 11 million we do about an 800,000 they announced last night. They did give us a cost estimate 2 billion euros is what there y are estimating. Here are the models affected. We have a lot of volkswagen polos, passats. A couple of audios. And the fiat. Andnsions both petrol gasoline, as well as diesel. The only real gasoline is a 1. 4 liter. 1. 2or the 1. 6 and the engines, these have been problematic. This has what has been most of the problem from the diesel aspect of the skin. Now lets take a quick look at what the ceo had to say. He is trying to get in front of the skin. He said from the very beginning, i said out to make sure we mercilessly and ceaselessly clear up the situation. This is a painful process. But there is no alternative. One quick note on this, last nights revelations do not bring any clarity to what was going on yesterday. That is the back and forth between volkswagen and the epa on the potential three leader porsche. Volkswagen is still insisting they had a defeat device. Last night, porsche north america did say they are taking and suspend sales of that. No real clarity on what is happening with a bigger engine. Anna we have u. S. Auto sales, the other big event in the auto 24 hours. Vw doing better than anticipated in those numbers . Hans the brand itself came in flat, basically 0. 24 . A slight increase. But given the sort of bad pr month they have had, you expected little lower. Auydi came in 17 higher. Look at the other numbers, a lot of u. S. Automakers had a very good month. These are october figures. You see fiat chrysler, toyota up 13. Gm leading the pack at 16 . We saw the last two months is the best two months in the last 15 years, annualized rates of 18. 2 million vehicles in the u. S. That market is strong. As we saw from the figures on the audi side, luxury and hes holed up in the state. Nicholse work, hans joining us from berlin. Anna plastic with mccarthy. Tesla surged on news that will deliver at least 50,000 vehicles this year, set to unveil its more affordable model 3 next month. Corey johnson has more from san francisco. Reportedla thirdquarter earnings. It was quite a doozy. They sold more cars than ever before and lost more money than ever before. 937 million, selling 11,000 cars in the quarter to be specific. Let me look at my model. Cars more than ever before for the model s. A very small increase over the previous quarter, less than 1 . The slowest pace of sales growth that the company has seen in at least seven quarters. And yet, the company trumpeting these results. They will officially narrow the guidance on how many cars they will make for the agreed they had said they would make 55,000 for the year. Now they are saying 55,000 for doing 50,000. The midpoint of the guidance now at 51,000 for the year, a good number below what they initially predicted. There is talk of a production and production changes for the model x, the station model crossover. Suv, whatever you want to call it. They showed robots starting to work on the vehicle, that thing is still not together. They are retooling the plant here. You would think that in the quarter in which they sold the most cars ever, because the factories are running a deficiency, Gross Margins be getting better. This quarter and last, getting a lot worse for the company. On the yearoveryear basis, Gross Margins down 25 . Something tesla will have to take a look at and figure out how to do. They are burning through a lot of cash at tesla, but still excitement over the model x and the model 3 yet to come. Corey johnson, bloomberg san francisco. Us talk about the market getting motoring today. Some days we are watching, pmi data from across europe. France, germany, and in the aggregate euro zone number. Anna the u. S. Will be looking out for a reading on the labor market. Getting employment change number, ahead of the numbers on friday. Early headsup on at least what is happening on the private paid role. And we have trade numbers from the u. S. As well. And janet yellen will be testifying on bank regulation, but the other high profile speakers in the u. S. Delivers, pardon the pun, as the harding company delivers. We go to tokyo, live and talking about the ringing of the bells and how stocks have performed. We will see you in a moment. Anna welcome back, 60 minutes past the 6 00. Here are the stories you need to know this morning. Guy the central bank has unintentionally started to surge in the asian stock markets by promising fivemonthold comments from the governors are not linked between changes in the shenzhen. This features in a lengthy article on the need for the communist party to have discipline. And on the website, but it is not an indication that the statements are a little dated. Extravolkswagen says an a hundred thousand 00,000es 8 vehicles may be affected. U. S. Listing was down on the news. Guy the fed says it will says it willsla deliver more cars this year. And delivering the most affordable model, the 3, next month. They lost . 58 a share last quarter. And japan posted earnings, it soared towards the 12 billion ipo. Jumping more than 50 in the moments after trading began, shares in the Holding Company rose as much as 80 with a 16 gain. russell ward is standing by in tokyo. Walk us through whether this was a surprise or intentional . Yes, well not so much of a surprise and the scale of the increase. Upis surprising to analysts, 56 . The Holding Company closed about 26 higher. That scale is really much higher than the market trading we have been tracking in the past few days. And probably one reason why the insurer went up so much was because it was just a matter of supply and demand, the bank and the Holding Company. They wanted to have all three companies, and had to pay much more for the insurer. The ipo was oversubscribed after the first couple of days. Individual investors who met targets for the offerings, claim to buy the three companies. And this is definitely welcome news to Prime Minister abbe. Tryart of his efforts to and get people to invest more of savings. Ipo wasprobably why the priced relatively cheaply. Because the last thing that Prime Minister shinzo abe would want would be individuals tanking and shine away from the stock market in japan. Markethat are the stock indications . Russell if history is any judge, they will be sustained gains. Japans top 10 ipo, many which were state privatized, the average gain for one year for those top 10 ipos was 44 . This would be well advised to stick around for a while and hold on to those posts group shares and linda mccue late. Let them accumulate. Guy what is going to be the focus of these businesses . What happens next, what will investors focus on Going Forward . Russell right, these companies are not without challenges. With quite a unique set up the Postal Service, the bank, and an insurer all struggling in their own ways with how to sustain growth in their businesses. Deals in mailvice delivery, poisons are declining with the advent of electronic communication. Theyre trying to transfer themselves into a logistics company, get more into package delivery. They made an acquisition of an Australian Company to get into the logistics side. Has restricted lending, it is not allowed to lend money. It is a glorified investor. And it has most of its investments and governor bonds from china, so they are trying to rebalance their portfolio and get into assets like stocks, private equity funds even. Tothe bank is trying increase in that way. Has to find ar way to grow in a country where the population of courses aging and declining. So they are looking abroad for growth, just like other big japanese insurers have done recently. Anna thank you very much for joining us. Russell ward joining us. Assetscks to the postal doing well after the ipo. Guy the u. K. Was not happy about that. The second day of the summit in dublin, the biggest startup gathering in the world. The next investment opportunities, we sent Caroline Hyde. She has been speaking with the most active investors in europe. Where are we going to see the latest trend emerging from, caroline . Caroline it does seem to all be about ondemand at the moment, the latest Delivery Company for example. And of course backing horses such as uber. The ondemand ecosystem is growing. Indexing to 1996ting, they founded in by the man im speaking to neil rymer. It was the first to start up outside Silicon Valley, they backed some phenomenal great ones inuch as the big food and funding circles. Digital thatking the company that sold from us 6 billion yesterday. We got the notice that activision was buying the mobile company. Was this really a reflection on the excitement of the growth in europe, and he feels this is highlighting a strength in the region. Have a listen. 10 years ago, we would have jumped up anything that achieved a billiondollar valuation. Today, we are noting a 6 billion valuation. There will be 15 billiondollar plus from humble european origins in the next 510 years. Im absolutely certain. 20 billion are going to be coming here to europe, really vindicating the strength of the sector here in the region. And indeed, it is going to be focused now on also the design of certain companies. That is what will set them apart. So many startups, the worlds biggest gathering of, many horses are now back. What is what to set those apart are the ones have a beautiful experience for the consumer. That is why cooper is doing so well. Anna anyone worrying about valuation being as high as they are . Caroline interesting, we actually had someone here, one of the first backers in facebook, he was speaking in new york highlighting that actually, do not worry about valuation just yet. Theyre not as high as they were in the 2000s because you and i am of the public, are not involved yet. Were not surging up a bubble. But some of the data coming out is just phenomenal. World, nows in the worth more than 1 billion. The socalled unicorns. According to the research, they are now seeing 1. 3 unicorns created every single week. A billiondollar company born every single week. How is that for a statistic . Many are holding back to see if sure. Re looking a little we will be speaking to why some are getting funding from the United States, and how they keep growing geographically. Music around, i will speak to many more investors and startups throughout the day. Guy thank you very much indy. Caroline hyde in dublin. Anna to indianapolis in an exclusive interview, the countrys Central Bank Governor says the ruby wilson be the rupee will soon be at investment currency. Send rain is joining us sandrine is joining us now. He was warning us about borrowing in dollars. When countries develop that external risk am have they been taking notice . If the Central Bank Governor feeling emboldened to make these comments today . Yeah, the concerns he had in february are now abated. I asked him if it was his warning, but he says it is more the volatility that the currency went through. Their billiond dollars, and now they dont see as much of a risk as he used to see earlier. Guy is he active on the monetary front . We have seen a lot of changes from the central bank, any indications what happens next . you may remember, he cut rates at the end of september by 50 basis points. That was a big surprise in terms of the scale. Inflation is key in india for Monetary Policy. 6 goal for a january, he is confident it can be achieved. In 2017. Goal is 5 he said that would Monetary Policy as it is now, it is just fine to reach this goal. This could suggest that he will stay put for a wild. Anna thank you, sandrine joining us from mumbai. Guy payroll friday, will talk about that just next. We live in a pick and choose world. Love or like . Naughty or nice . Calm or bright . But at bedtime. Why settle for this . Enter sleep number. Dont miss the semiannual sale going on now Sleepiq Technology tells you how you slept and what adjustments you can make. She likes the bed soft. Hes more hardcore. So your sleep goes from good to great to wow gift the best sleep of your life to your whole family. Only at a sleep number store. Right now save 500 on the veterans day special Edition Mattress with Sleepiq Technology. Know better sleep with sleep number. Guy 6 30 in london. These are the stories you need to know. Ana goals wagon said that hundred thousand vehicles may be involved in another emissions scandal. The german carmaker found faulty readings in petrol vehicles. Tered on diesel vehicles. Guy Chinas Central Bank has published five month old comments which said there was a link between hong kong and shenzhen. It appeared on the pcb website without any indication. Japan banking and ensuring has soared on the news of a 12 billiondollar ipo. It jumped more than 50 in the moments after trading began. Shares in the Holding Company rose as much as 80 on the back 18 percent on the back. Opened a brick and mortar store in seattle. Selecting stock based on online sales, a physical shop presents gives customers a chance to handle electronic gadgets. Anna breaking news humming inough from axel springer, germany. A lot of folks were wondering what they would say about volkswagen. Pany thatom relies on advertising, Morgan Stanley reporting. This to give you headline numbers, q3 revenue coming in at 73. 4 euros. I dont have anything to compare that to. Nothing about the advertising just yet. Guy we will get more details. Shanghai markets soaring, up by 4 . Lets check in on the details. I am looking today at the euro versus the dollar and the euro versus the yen. This is all about Monetary Policy divergence. We had japans central bank maintaining stimulus. And we had mario draghi speaking yesterday reiterating the ecb will consider adding more stimulus at its next meeting in december. Look at the fed on the other hand. Trader expectation, the probability of a rate hike, that has increased to 50 percent by december. That was only down at 34 on october 26, a day before their last meeting. We are looking at a 50 chance of a fed rate hike in the summer, according to traders. How does that translate to the euro and the yen . The euro has held losses against the dollar, the yen is flat. Down against the dollar year today. Against the dollar, begin looking at a 1 . Done about 8. 5 . We are looking at the euro being the weaker performance among the three there. That is a lot about expectation of mario draghi Monetary Policy. We will get more closed today on perhaps this fed rate hike in terms of u. S. Trade data, making up 90 of the u. S. Economy. And we get all of that allimportant payroll number on friday, the expectation for october is 180,000. Back to you. Guy thank you very much, indeed. We will get you up to speed on mario draghi. Central bank focus now, what kind of week will it be with the data . Being massive. Anna tomorrow is super thursday, when we get a rate decision. All the reports that go with that, we have inflation reports. And a crucial u. S. Payroll numbers are out on friday. That piece of data will affect the rate conversation. Bloomberg spoke with a former member of the board of governors. He said the u. S. May need to get use to a Slower Growth rate. The struggle is mostly over where inflation is growing. We have two criteria for liftoff. Has a that the market recovery, mosul think were in that region given that unemployment is down 5 . But they have to be reasonably conferenced and there on cap for 2 inflation target. Inflation has been very low, we see very little wage pressure. The question is, do they need to act now . Unconvincing,of the growth we are getting in the u. S. Right now. It does not seem to have the foundation that it used to rest upon. Is this because the dynamic of the economy has changed . Have we not come to grips with it . This is a big question. Productivity growth has been quite low, we have been generating jobs, the outlook power has not been that high. So that is raising that question about how fast is the economic engine spinning . And the other question is just, would lower population growth in asian populations, we just saw lower growth in general. There used to 3 . That was normal for the u. S. And we will have to get close to 2. 5 . Why has things changed . We seem to have limped along. There is talk of another downturn, we have any buzz left in the gun . Very low. T its rate i left in 2009, Interest Rates have not changed. That much no one inspected them to be this low for this long. Things to become challenging, the fed could try to do more quantitative easing. They could bring rates negative. I dont think theyre likely to do that. But it is not just the fed. The central bank is one player. There is a lot of uncertainty on the fiscal and regular tory side. That is waiting on business history. They always blame the government for not doing enough on the fiscal side. But Interest Rates are at zero, so it is hard to ask for more from banks. Guy let us bring in our guest host for the next hour. He is the senior advisor, bob janjuah. What did you think about what he had to say . Is wage growth Strong Enough . Where is the fed changing the tone . Are we on for december . Ope by thehole hio fed is there is no need tight. They want to show they can normalize policy. Said,ality them as randy growth would be lower. We did say rates would be down here for a very long time. And they have been. I have said it before on this program. Iny make a once more december after that, but it will be the shortest cycle in history. Anna why is the fed so itching to hike when you do not see the rationale in the data . Bob i think they want to give off a signal that things are healing, much like mark carney and the u. K. Things are getting better. We are all aware that the level Interest Rate policy we have had, these are emergency policies. Go back to 2009 when bob bernanke said we had an emergency situation and we have to have emergency policies. We are still in that ballpark. It is sense and normalizing. But reality is that we need to have ammunition in the toolkit ahead of the next fiscal recession, which i think is only maybe a few months away. Possibly a few quarters. But it will happen. And with Interest Rates here, and were the fed is made it very clear they do not like qe, they can see that it has done a lot for market and asset prices. Knowledge that privately. I think back in march, they would have loved to hike two or three or four times. I think they kind of are stuck here. They need some ammunition. Anna we got to the point where the fed feels they have so little ammunition they have to hike rates is to cut them again. As you describe bernanke is the best example. They are happy with the school authority. When bankers are caught between a rock and a hard place, they do it they have to do. Back in 2009, there were the only institution that had the leverage to do anything. They did it. And we are where we are now. They have gotten the outlook wrong consistently for the last six years. This is globally. I think there is still a refusing to accept that there has been some permanent damage done to our economy as a result of the Global Financial crisis. And i think they are struggling as to what to do next. These are humans, these people. They have no ability or better foresight than we do. No better forecasting than we do. So i think it is an experiment. Guy how wide it does it spread to get between policy of the fed and the ecb . Bob not very wide for very long. Look, onlywide, but a few months ago, people were talking about the ecb. You had people talking about european economies and growth on the show a few months ago, of course that is not the case. They will be doing qb for a long time. I think the fed get back into easing policy by the middle of next year. Guy middle of next year, easing again. Anna that is house short the cycle and how low the peak. Bob i spoke to central bankers a few weeks ago committed very clear to me that he felt the peak and Interest Rate, will have lower highs and lower lows. We talked about in terms of bond yields. That is a bit political, if i tell you. Notes, we 10year got them up to 5 last cycle. In this one, i think 3 . We may have seen the high back in january actually, january 2014. And i think that is a good way back. Anna coming down from here . Run, i do think the economy will slow and the fed could be easing. We could seat in your notes at 1. 5 . We could see 30 year notes well below 2. 5 for sure. Anna thank you. Bob stays with us. Guy Angela Merkel is under pressure after the refugee crisis. She has faced ever increasing demand to hold the flow of refugees. She does not place limits on the number of people to qualify for asylum. However, michael roth says that he thinks her government will survive the jewish. He spoke to has nichols. Plays a very constructive role because she knows quite well that shortterm solutions do not exist. Hans could her government collapse over this . Michael no. I understand there are many concerns in society. But it is a huge advantage that the grand coalition is in office. And people do not want to waste their time with party conflicts. We have to work very hard and very intensively on sustainable solutions. Ing thirdquarter profits beat estimates. We will be speaking to the cfo and the netherlands. That is up next, here on coundt tdown. Anna welcome back. Here are the stories you need to know this morning. Has Chinas Central Bank sparked a surge in the start market by publishing fivemonthold comments which hong konglink between and shenzhen. It appeared on a website without any indication. Anna volkswagen said a hundred thousand vehicles may be involved in another emissions scandal. It had centered on diesel engines. They drop more than 5 in u. S. Trading yesterday. Guy beating analysts estimates, the biggest lender in the netherlands had margins improve. Janjuah still with us. Bob, a lot of people are really interested in the comments made yesterday about being short on the euro. May be ready to short stocks. Is that right . Bob we are getting there. I think for me, the balance of i think, i wrote a few weeks ago that we broke the key technical level. And my sense is that if we stayed above that, we would go back to the old highs of your. I think that is where we are headed. I think in terms of shorting the euro, to me, it is about the dollar. And look, it is kind of clear. We are looking for the ecb to be longer. We expect the fed to hike. The next move, who knows when . But being on the dollar makes sense. We will get to some interesting levels. But it will be q1 when markets will be primed perfection. The economy will be going the other way. Anna shorting the pound, george soros you to say in the 90s. The strike any particular fear into any central banker . Bob i dont think so. What he is highlighting is something relatively obvious. A kind of makes sense. Im just not sure if it is now. I think this time. Between now and some point early in q1 priced,n stocks get when we start to roll over, give us a sense of the magnitude of the rollover . How far down we go after that . Bob ultimately, we can go back to the lows of this year. I think ultimately we could easily see a move back down to 1500 25 kind of correction. Which i think, it is kind of normal and markets to happen every now and then. We are well overdue one of those. The perfect mix would be the fed theng in december, unemployment data goes on a trend of weakness. And i think, i talked to kevin my colleague at work, we have this conversation every day, he mentioned to be some months ago that would be perfect. I think we will get that. Productivity data, it is not great. A corporates normally responded by firing people. Ultimately, they will stop hiring and start firing. Anna and the central bank will face a short tightening cycle. Talking further easing and more qe. Bob the market will respond to more qe. But the reality is the fed, look, julie is a broken record qe is a broken record. And i think it has been very clear, very obvious. Qe has led to a lot of speculation. To the owners of capital getting richer and the workers, to marx, ise paukarl something janet yellen is acutely aware of. I dont think she is happy with it. But the next fed move would be a move to negative Interest Rates. I do think that is where we could be headed next year. Guy if the fed is going there, where on earth is the ecb going . Mario draghi said there are a lot of things on the table we could potentially look at. The european economy is in no way in good shape like the u. S. Economy. Europe is in real trouble. Bob the Balance Sheet could still expand significantly as to be smaller, with a share of the economy. So it could do more of the same. Europe,the reality in they have a slightly different game ahead of itself. The only longterm sustainable solution to the eurozones fiscal consolidation. I. E. A unified fiscal policy. He knows that. We know that. He is a federalist. His job is to give up altogether until we can get to that point. That is a multiyear thing. Were privy to that already. It is happening. German taxpayers are paying for greek losses. It might be convoluted, but it is happening. I think we are getting that way. I think his outlook is highly different. Anna you dont see the refugee crisis is something that will shine a light on the problems in bringing about that fiscal conversion . Mean it creates tension. Let us look at germany. Germany and italy, germany particular, the population is declining. It is an economy which is what you get overtaken by the u. K. In the next 1015 years. We are growing demographics, germany is a declining demographic. They need millions of immigrant workers. They just do. Guy how long can mario draghi keep the show on the road . He is getting more annoyed about the fiscal story . That is what fiscal bankers do. Bob he could easily double his Balance Sheet. That is a throwaway comment, but he thinks the ecb could do a lot more. They have not done an awful lot. They have done a lot of talking. But mario draghi is not committed that much capital. I think there is more to do in europe. In the currency is critical. Anna thank you very much. Bob stays with us. Rise, beating analysts estimates, the netherlands ing cfo joins us. He breaks down the numbers. Good morning patrick on a sissy. Congratulations. Is this trend what we are with a breakdown, with a story improving on provisions, does that continue . Something we can get used to . Patrick yes, good morning. We had good results, profit up by 1. 1 billion net. And the top line improvement, as well as improvement in the low loss provisions as you mentioned. I think it is important to mention that we are up compared to last year. And also the credit environment is improving. We are seeing lower loss provisions, improvement in npls. Anna good morning. We were talking about what the ecb does next. A lot of talk about easing from the ecb, are you expecting to see that . Do you want to see that in the eurozone . Patrick i hope we dont have to have it, actually. If you look at what we are slowg now, we are seeing but improving economic environments. I can the forecast is 1. 5 this year. And we are seeing strengthening of consumer demand, house prices for me, activity picking up. Plus a number of different geographies and our footprint. They are good signs. Obviously, there are extraneous factors. China has issues. But i think they are temporary. What is important is trying to sustain the growth that we have already. I would sayanker, the banks have a role to play here. I think is important also that helping sustain this growth for that we balance the future regulations which can be a drag on growth. And encourage banks to fuel we currently have. To have a break on the other side, i think we need to do we can to sustain what we have. Guy patrick, how much is regulation holding back loan growth there . How is it slowing down the european economy . Patrick that is a very good question. But i can put a number on it. Well a very Strong Capital ratio. We have a Service Capital as a group. We are looking to grow in our target markets, our challenging growth markets. We are ready to support that growth. But you do see across europe several Banks Holding back and contracting. That does weigh on provisional credit. It is a big picture. Also, uncertainty what number can you put on uncertainty . Theink it is important that exercise comes to an end. Other regulators want to do that. So taking uncertainty of the table, which hopefully would be done by the end of next year, is another factor that will help encourage people to support growth. Anna when you are try to Balance Holding on to capital and returning capital to shareholders, what is going through your mind . You are selling assets, when to have more capital to play with fairly soon, what is going to dictate you how much of that gets back to shareholders . Well, we stated what we wanted to do in terms of capital. Dividends will pay a minimum of 40 . We will pay in the interim. We have a Service Capital with the group. And absent regulatory change, i hope we get parity in that environment, it would take that away. We are predisposed to return surplus capital to shareholders with a sustained elevated pay off over time. That is our policy. Are to get it in june articulated it in june. We look to assess how we see this Regulatory Framework and the prophets we have made, which are good and continue to be good. We will decide how much of the surplus we think is prudent to pay back the shareholders, in addition to the 40 . Guy what is the future of investment making in your mind . I know that is in the business youre exposed to. But we have seen a lot of changes in european banking. It does seem people are looking at areas for which to focus. What is your view . Patrick i need to be careful talking about business. Coreou said, they are not to what we do. I am more a consumer then provider. But i think you do need it. You need investment next, for example, one of the things we would like to be in what to do is more securitization. Particularly if we do get changing regulation. And that you do need investment banks. I think europe needs, and again we need accounts the weight of regulation particularly in europe against the u. S. , as to whether we are doing the right thing to develop our banking infrastructure of retail, commercial, all of that contributes to european growth. Anna patrick, are you still in contention for the turkey unit . The big political shift taking their, seeing any blocks on that road . Mean, as weh, i have such a Strong Capital position, our name is associated with so many opportunities out there. I can tell you, you know, theyre not all on to happen. A lot of this is hot air. We do not need any help at the moment that we are doing very well. You see the growth is very solid. Were just going to focus on what were doing. Guy patrick, nice to speak to you. Congratulations on the numbers. Patrick flynn, cfo at ing. Anna 7 00 here in london. You are watching countdown. The scandal is spreading. This time, petrol engines investigated. Anna shares surge as the Holding Company debuts in tokyo trading. Spike innintentional stock market. Welcome to countdown. Anna lots to digest. Further vw stories. Those cars being investigated. It seems, petrol engines being sucked into the mix. The new story about co2 has way down the stock in the u. S. Coming, we will talk about them in just a moment. Pretext, profit, slightly ahead. First off, sales a little ahead as well. Anna looking ahead to estimates. How much pressure does this take off . Years after he set about trying to reduce the retailer upon fortunes. We will get further guidance. They are saying they are releasing their fullyear guidance. Guy he already knows the numbers. Reporter at the moment, all i am seeing, annuity assets up 8 . 43. 1 billion pounds. U. K. Government changes to retirement have sent sales down. One thing that came out in the last earnings. The largest manager of u. K. Pension assets. I am still waiting for a number to come in for profit. The challenges facing the industry at the moment. U rules the idea is they will set stricter capital standards to help firms withstand a repeat of the financial crisis. The bank of england will issue their verdict in december. Ive got another headline coming in. Legal and general to sell egyptian gulf german businesses. Selling offen noncore businesses. Guy nigel wilson. What would you say is the important stuff coming out of the numbers . Nigel cash up 14 . An outstanding result. 700 billion. Guy competition. Nobody wants to be an asset manager. Nigel there are a lot of people wanting to get into Asset Management. If you include the National Grid , we have almost 35 billion in net flow. Goodsized size of a u. K. Asset manager. We entered japan, korea, taiwan. The National Grid deal. Jamal of momentum behind the business. It is exciting to see such huge progress. They did fantastically well in the first nine months. Anna you are talking about the new markets you are going into coming where are you growing and not growing . Nigel coming out of egypt would not be one of our great strategic developments. We are in great economies. We have chosen the u. K. And u. S. , two of the most healthy economies. Plus expanding in fund management, Asset Management in the asian markets. We are excited the brand of legal and general has traveled around the world so much better than we ever anticipated. Im not shy about being optimistic. It has done much better. I underestimated the size of the braille and the impact of the umbrella across the world. Guy we heard from ubs yesterday. Aedit suisse wants to become asset manager. It does seem to be the area of choice right now that people want to get into. Nigel we are happy to see other people compete in the markets we are in. Bidse winning 70 of all we are having in america at the moment. Competitively, we are in a great Competitive Position but we are thingso do capital heavy as well. The core of what we do. On track to invest 15 billion. That is necessary to create Economic Growth. Debt. Rld is awash with there is too much debt. We have to have an equity culture. All over the u. K. , we are World Leaders and startups. World leaders and startups. They have to come grownups. Grownupsonly become if we put Equity Capital behind them. We have to change the focus from debt to equity. People willing to put capital into the companies. Not just legal in general but other people have to step up and put up Equity Capital. Guy we have seen two things. It is about the problems and baking in baking. We are getting there. Guest what we have seen over the last six years, the corporate sector, rather than investing in themselves, they have used that markets to buy back. E are crying out for it nigel we are not huge fans of share buybacks. We think it drives odd behavior. We would rather people list equity. Although the banks are getting criticized for raising equity, we support it. Banks. Well capitalized providing longerterm capital, mediumterm capital. Longerterm capital should come from firms like legal and a general. Anna you think you can put that into u. K. If the structure. Huge dealhave made a of progress. In manchester. We are hoping newcastle, birmingham, bristol will follow. Indeed, cambridge will follow in the next six months. There is a sea change moving through the u. K. Championed devolution. We are wanting to make sure the cities get the same economic success as london. Guy Central Banks are going to keep ratesl low for a long time. Is that going to prolong things . Nigel policymakers have to make some different choices. Support and equity altar. Devolution. Markets. E parts of the we have too much regulation at the moment, particularly in europe. That is decreasing the potential to achieve Economic Growth and real wage growth in europe. We are not investing enough longterm capital. Guy we have plenty more to talk about. Plenty of market numbers coming out. We need to check in with what is happening with asia. Anna i mentioned some of this earlier. They are raising the fullyear guidance. General merchandise growth rising. We mention they were raising but we do not have the exact number. A positive comment from the management lets check in with the asian markets. Ingles. Ngl it. D they did was it true . Lets be clear. They did come out with a statement. That,on how they clarify d come from ai speech in may but it is all true. Let me show you first, shanghai composite. That is how we ended. Four. 3 . A good day in asia. The 300 biggest stocks. 280. Not anomalous down. Not a single one was down. August 21,us back to before things started coming down. Hong kong exchanges, fairly representative of some of these brokerages. The pboc published about opening up chinese financial markets. Part of the article were comments about the stock connect from the governor. Markets reacted. Towards the lunch break, the pboc came out in said, those comments are from a speech in may. Following that, we had a clarification from the Hong Kong Exchange operator saying new agreement had been made. A racing most of the gain. Lets put this into context. There is a year to date chart. The hope was we would see the same amount of volume that drove the stock up this much. The is where we are at moment. Broadly speaking, a good day across the asiapacific. Positive news flow. That is how we are essentially ending. A few markets left open with the exception of the philippines. There we go. That is a perfect session for you. I think we are adding about 150 billion, 160 billion in fresh capital. Takingavid liberties with the map of asia. Guy recently positive start. Lets get back to our conversation with nigel wilson. Nigel, you mention some of the strengths around the u. K. Economy during lets talk about the u. K. Super thursday coming tomorrow. Another fresh load of information from the bank of england. You since the economy peaking . Nigel if we can get more capital where it is needed outside of london, there is the potential to grow quicker. The problem is, we are not getting enough capital into the cities across the u. K. London is the exception. We live here and we get excited by developments in london. If you go across the rest of the country, there is not enough happening. Anna you talk about that often. The money you are putting to work outside of london. Why are not doing the same . Nigel people have been discouraged from doing that in part as of the lack of devolution. Having a mayor in london has been positive. Ing more powers is a good thing and they will try to stand on their own two feet. Attract Equity Capital. We spent too much time on the banks and shortterm capital. We should spend much more time figuring out how to get the institutional and pension money to work more efficiently, investing for the long term. Guy are we going to build one billion 1. 5 million homes in five years. Nigel i dont know if we are going to do that. We have a pipeline of houses. Hopefully, i will have more exciting news about the things we think we can do. There is an excess demand for housing and a lack of supply. Potentials a massive for Economic Growth and real jobs. We are not ceasing that at the moment. Anna how optimistic are you about the u. K. Story . Is concentrated in london. Assets and people all around the country. Qe. Problem is the textbooks, in 2008, said if you do qe, it takes away from the real economy. That is the outcome. Combine that with the fact that the government has used up a huge amount of fiscal capacity to bail out the banks when they should have made the hit on bondholders, it means we are kind of stuck. Anna are you concerned that london commercial Property Values might have . Like when Property Values peaked because i do not want more speculative bubbles. That stability of peaking is a good thing from an economic point of view. We need more stability. Bob we need for the Ripple Effect to happen. Foreigne are seeing investors and domestic investors willing to call invest in some of the big ventures outside of london which is terrific. This is mayors, chief very ambitious mayors saying, me next. We have moved from nimby to pim be why. Bob dont forget that demographics are to go. We are a growing population with a growing workforce. We should embrace that. And talkill come back about these issues. Staying with us. Vw scandal spreading. More on the latest twist. Next on countdown. Anna welcome back to countdown. Breaking news coming. Of comment coming out they have been given an extension until november 11. They said they were making good progress. They still say they are. We will see what happens. The deadline is november 11. Anna a lot of money to be raised. You are the other stories need to know this morning. Haschinese central bank started a surge in hong kong sthares. A link between the exchanges was appeared on the website without any indication they were old. A 12 billion ipo. Shares in the Insurance Unit jumped more than 50 . Anna you like that bill, dont you . Vw says an extra 800,000 800,000 vehicles may be involved missions scandal. Guy lets find out what is going on and why the scandal is widening. Hans nichols joins us from berlin. Petrol drivers are now looking like they could be in the sites. Youve us the details in the latest twist. It is only the 1. 4 liter engine. This has to do with Carbon Dioxide, not just nitrogen oxide. We have 800,000 vehicles affected by this co2 emissions. Arexpect or what they saying, it could cost 2 billion euros. We have some sense of which vehicles are affected. On the body side of things, audi side of things lets focus on those which are affected. Are the oldes diesel ones we knew about. I think it is important, the way that this was discovered. They are doing their own internal audit. They self disclosed last night. He is the new ceo from porsche. I set out to ensure we clear up this situation. This is a painful process. There is no alternative. The revelation did not shed any on the porsche side of the equation. They have the three meter engine. There are something faulty with the software. Volkswagen says they will work to clarify it. Porsche north america said they would suspend the sales of their vehicles. We still dont have clarity. Dueling accounts. Anna hans nichols with that new twist. Guy nigel, we have the story, they are going to be raising a lot of debt. The world is awash in debt. More and more, you talked about the need to develop an equity culture. Impetus come from for that to happen . Notything i read says it is. Nigel a lot of these mature merging together as they run out of growth options. That is why we have an Amazing Energy in startups in the u. K. We just dont have capital behind them. 55 of startups have been financed by credit card. How absurd is that . We have to change where they come into the economy. Give some of the Tax Advantages back to equity. Theting of course with still packs. That is going to happen is more qe. It was designed for the rich iv rich. It is a driver of global inequality. We have to create real jobs outside of london. Real wages. Modern skills. There is Wonderful Technology all over the world. We have to make the most of it in the u. K. In for rest from the rest of the world. Is awash with money that we could do it with. We have to create the impetus. Anna we have longterm money but not not net income, it is financial engineering. You can play with it with debt. Same point that you are making. There has been so much incentive anna you have called on companies to not report quarterly. Would like more boards to take a longterm strategic view. We are in it for the longterm. I say that to chairman and chief executives who come into our office. To thedinated a letter chancellor from 13 trillion in investment money. Saying we need more longterm focus and less of session with Quarterly Earnings. If it were up to me, i would drop completely the Quarterly Earnings focus and focus on delivering value. I think private he equity is very shortterm in many instances. Bob it is in some ways and in other ways it is not. Leverageok at the anna thank you for joining us. We to have your thoughts this morning. Guy up next, japan posted delivers. We are going to go to tokyo, next with the latest in just a moment. London. 0 in Chinas Central Bank has published five month old comments. They said a link between wouldes inch engine i start in 2003rd guy they have raised guidance. Sales rose and were better than estimated. Extra 800,000an vehicles may be evolved in another emissions scandal. This now points to concerns about emissions about co2. Adr fell more than 5 . Half guy good morning. Where did the latest revelations fit in . How damaging are they . Is it only going to further cause problems for management . Widening the scope to more cars, petrol cars. It is a bigger issue. Supervisory board is going to meet in an emergency manner. They dont meet without permit the notice without good reason. Anna you cannot do the math from how much this is going to cost the company per car. 800,000, you dont know if theres overlap with pbs scandals. From the numbers, it suggests if there is a problem on the co2 front, that could be more costly per car. Guest this suggests we are talking about hardware. More expensive cars. The press is talking about polos and gulfs. Be these cars that need to written off because they cannot be fixed . Seen so far. E have guy the meeting is today. An extraordinary meeting. Do think this is related to the co2 side of things . Senses the magnitude of this, we may not fully understand the magnitude of it yet. Managed to step it up one notch. I give a lot of credit for staying ahead of the issues. They have not shied away from disclosing that news. Hard to know. We are missing so much information. It seems like the board itself is getting into a higher level of emergency. Does it mean Management Changes . You will find out. Anna we are working on the magnitude of this story. When we look at what they have and through and how they are adjusting their business, we have had conversations about whether it impacts the german economy. Are you seeing material changes in the amount of money they spend marketing for example and impact intowith big other parts of the economy . O early. T is to there is no major change in the way they are doing business, cutting progression production schedule. It is a beautiful brand for consumers. In between premium and volume. You dont give up on the brand. Ita it is amazing you think has all those polities despite the scandal. Guest you talk to the consumer, that is the most important asset they have to navigate the crisis. Convince customers the car is as good as people thought it was. At all, nott lost yet. Guy what is the Investment Case for putting money into vw . Is it still too early . Out ands is bottoming longterm, what is the investment story . Guest this crisis happened at a point when the stock already had been degraded from china. We have assumed, there is litigation fines, fixing the cars come etc. Years, thising five company will be able to go without raising capital. In a way, you are looking at an acceleration of the change. Why were they spending so much money for not leaving been able to meet the pollution norms they were supposed to meet . Stonet they will leave no unturned and we will see the business become much more capital efficient. Anna they have an excuse to do big change. Thank you very much. Joining us from ubs. Ing at the summit in dublin. Caroline hyde there. What they see in europe. Lets listen to the conversations she had. 510 years ago, we would have andieved best jumped up o down for anything with 1 billion vibration. Now we are noting 56 voting dollar 5 billion 6 billion valuations. Anna Caroline Hyde joins us from the summit. With us, the manager of a company that has invested in startups. Caroline . Caroline one of the most prolific investors in europe, the u. S. , and india. I have a partner, joining me right now to talk about the exits we are seeing. At 6 billion. Many worried this was below the ipo valuation. Is this a sign of strength . The european technical system is booming. You look at the past five years, we have seen before billion dollars. Portfolio, three exits in the billion dollar range or multibillion dollar range. A company that got listed in france last week. This level of exits are exciting. Caroline which area, when you biggestn event, the gathering of startups in the world, where are you trying to focus on . On our side, we are very focused on the cloud. A lot of software as a service. A lot of investments in this area. We are doing a lot around marketplaces. A new food Delivery System in london which is working extremely well. Across thepanding world. We are seeing innovation in this area. Caroline we are seeing bigger ticket rounds happening. One of the companies you hold, they have raised a significant amount. Is that also a sign of threat . Guest you need innovation, massive markets. What we are seeing right now, all of the startups are dressing global markets. France, india, turkey. The scope of the markets, the opportunities are bigger. That attracts larger rounds. A dozenast, we had companies which raised rounds of 59 or more. 15 million or more. You need that amount of capital to be able to see the unicorns everyone is talking about. Caroline you mentioned companies that have looked to the United States for an investor based. Are you concerned that the u. S. Is having to get involved when they raise big ticket rounds . Is it a coming of age . Fundersseeing more coming over from Silicon Valley . Test the tech world is getting global. Europe has earned its place as a global tech leader. Financing is coming from everywhere. The u. S. Including u. S. Investors. We are seeing investors from asia as well. From europe. What we are seeing right now, the world of technology is getting flat. Pockets of money are spread across all the major continents. Caroline it is wonderful having you on. , one of the most active investors here in your europe. Next, speaking to one of the cofounders about their international expansion. Back to you in the studio. Anna thank you. Caroline hyde at the summit. Post and its itancial institutions marks the culmination of the effort to privatize the Postal Service. The insurance business, a surprise . Guest probably not a surprise the shares rose. It is surprising, the scale of the increase. Up 56 . That is probably because it is the smallest of the three companies. Many investors wanted to buy all three. They had to pay a higher price for the insurer. 26 Holding Company as well, increase. One of the most successful major ipos in japans history. Faith in have shown these companies. Leap of faith involved to invest in them. They have a few challenges Going Forward. The Postal Service operating in mailea with declining volumes. Iney invest their money an low yielding bonds. Is operating in a market with a declining population. It has challenges, to expand. Investors here have definitely ow faith in this japan post offering. After trying to get this off the ground, lots of work ahead. Anna thank you for joining us. Join us from tokyo. Guy this is where we stand right now, as you can see. Euroloomberg fair value stocks, of the by 0. 5 . Reasonably positive open here in europe. Not that exciting, but we will see a positive open. You can see the positive session in a shed, shanghai. Anna could be some interesting individuals. A few minutes away from that. European trading starts. We will break down some of the stocks you need to keep an eye on. Vw. We will give you the details. Anna seven 46 in london. It guy china policies 4 Chinas Central Bank has stocks byurge in unintentionally publishing old comments. Adr fell more than 5 . Guy british regulators have given ab inbev of more time to give a deal with miller. Next wednesday, if the deal goes ahead, it would be the biggest ever buyout for the brewing industry. Thirdquarters earnings that came in ahead of estimates. The president joins us from stockholm for the first interview of the morning. Thank you for joining us. Lets talk about where you see the oil prices. What kind of expectations are you factoring in . In terms of the oil price, it is around 50. Dictations expectations to keep them at this level. Longerterm, i think we will see another cycle like we saw in the past. Reductionsu. S. With in rig activities and production going down. Reductions in budget. Eventually, the supply line will diminish and demand is still strong. We will see a reversal on the supply demand side. Guy you have been in investing, you have a great field and are pushing into that. The cost in story . We know what the cost out story is. Of how much you pay your subcomponent suppliers, etc. , what does that look like . An importantis project for the company. As we said, we are pleased with the progress. Edward grieg is in the last phases of production. It is something we will deliver on schedule. Also a project we will deliver on budget. The future in terms of cost is related to the cost of operations. We see a positive channel outside. Anna let me ask you about the arctic. Been pullinghave out of. Is that his decision you keep evaluating . The barents sea, the arctic side, we are active and we will continue to be active. Arctic to differentiate and arctic. Icesouthern barents sea is free. It is operationally very accessible. You can operate all year long. It is an area where in the future we will see activity and resources. A lot of the majors coming back to that area. Guy you said in your statement, the strategy will remain unchanged. The organic growth story will continue. Coreemains our grower strategy. Are there other opportunities as lower prices have an impact . That may repel you to change that . Guest the straight answer is no. Organic growth remains an important part of our strategy. We still believe it will continue. In norway, where there is the most active exploration. Through the tax regime, we are getting back money. If there is an area we would like to explore, it is norway. We will take advantage of low cost today. Lower than they were. We will take advantage of that. Guy minutes away from the opening. What stocks do you need to be paying attention to . Anna ing. The biggest dutch lender. Today, we got a 14 rise in profits. Regulatory costs, the Committee Said would jump by more than 50 of this year. We are getting mixed calls on the stock from analyst. Ing up 21 this year. Eating other stocks moving on, this is called higher by most analysts. First time earnings beat estimates. Pretax profit rose 6. 1 . Increasedy profitability forecast, their growth margin. Sales, still a bit of a challenge. This has been a difficulty, especially with Clothing Sales and general merchandise. Samestore sales fell 1. 9 . Found faultyaid it emissions readings. Widening a scandal that has focused on diesel engines. One analyst comment, vw is leaving us all speechless. Anna thank you very much. With the stocks to watch. A couple more, accelerating plans to signify their organization. Cutting jobs. They are talking about how it is difficult to quantify therefore your outlook. That one atto watch the open as well. Guy lets watch as well what is the ng with a be in ab inbev. Guest we are also looking at what happens with volkswagen. Ole . Deep is the wholh japan, the biggest ipo. The difference between this and royal mail, so different. Japan needed to leave a lot of cash on the table to encourage investors. Leave the money on the table. Give them some confidence. Important for investors culturing. A lot of investors opening new accounts to invest in this. On this test be on this, it is important as a flow story as well. They cannot loan to households. They said on 2 trillion in assets. Will they get more aggressive the assets . What is the flow story in the years to come . I will be discussing matt. Guy thank you very much. Jonathan ferro with on the move next and the market open in five minutes. Markets upof the before we got those comments about links between hong kong. Even after the comments were contracted or contextualized, we had the market strong. Looking for some been stronger for european trade. Guy we are but keep an eye on volkswagen. Jon good morning and welcome to on the move. Lets get straight to your morning brief. The scandal deepens. Vw said it found faulty emissions readings for the first time in petrol powered emissions. Japan delivers. The Holding Company debuts in trading. 2015sinvestors flock to biggest ipo. Unintentional spark in asias markets by publishing fivemonthold comments from the governor. Futures the open, ftse down. Lets get straight to nejra. Nejra it has been a lot of Corporate News this morning. One thing that has been impacting the market, mario draghi at it again. Indicating that the central bank will reassess stimulus in december. Lets look at what the stocks are doing. We saw the reverse yesterday. We have seen the stock 600 make up half of the summer rout already. Looking at the national benchmarks, the ftse 100 up 0. 3 . The cac 40 up 0. 3 . We are still waiting for the dax to open, but let me show you the stocks i have been watching today. There has been a lot of Corporate Action yet again