I amrkham to countdown, mark barton. Stay with us. It is 7 30 london time. Cityll be talking to the the ceo of a smartphone app. Then we are joined by brazils ambassador to the u. K. As his country prepares to take on columbia for a place in the world cup semi finals. Change in the European Central bank. Is it a historic moment or is the ecb catching up with its peers . Covered the conference yesterday. He told us what to make of the move. I go with historic. It is about transparency, shaking up the methodology of communication. The art of communication. How often we hear from them. Im going to go to every six weeks, mark. That is because mario draghi wants to break the markets are racing towards markets move ahead of every meeting. Break that expectation. I setally thought that up and went, interesting. He wants to break the psychology of market. Is that what carney is doing with him i am raising, i am not raising. He is shaking it up. Ecb werd that the will have dry runs, whether it consensus minutes. A very important in terms of understanding. Do the impact of minutes have on markets . In Federal Reserve speak, two basis points. Lets see with the dry runs are. This is about progress. Barclays ran a survey and the ecb came out below the fed at 5. 7 out of 10. How there talking about fouryear lending program, the tl tr works. Get . Did we i will give you my take. And what i understand. Banks uping to lend to to four years. You have that option. Up to each and euros could go into banks up to one trillion euros could go into banks. Maintain or increase your loan portfolio. Then the guys going deleveraging, they have been deleveraging. Put in the mario draghi terms of lending. What he is saying is you guys who are deleveraging, if you stop that, we will give you a little bit more loans. If you change your mind and begin to consider what you are doing, we will help you more. He is putting a floor. He is tied to put a brake on the deleveraging move. That is very important in terms of that. Was quite optimistic in terms of healthy banks. Inand particularly particular, giving the structure, the problem is this is for all banks, not just the weakest of them. He was with merkel last night. I dont know whether there is anything in that. Eurodollar. If we look at the today chart, look at that. Down the euro went. I went that had to do with the jobs report. He mentioned to the Exchange Rate twice. That is a major problem. Bank president he at the same conference . What was his tone . What do you think it was . Lindenbergmberg ndeberg bank is hawkish. They should not delay normalization. Monetary policy has done its part. He is keen on price stability. Low inflation for too long euro zone the economy. I like him. He says its short and sweet. The dow jones closed above 17,000 for the First Time Ever yesterday. This is being felt across asian market. Our man in hong kong has the details morning good morning. Abouty very encouraging the economy in the u. S. The biggest market is north america for nissan. Said, the ecbanus keeping rates low for longer. That is encouraging for canon. A quarter of the revenue in europe. From china, with concerns about the property markets, japans nikkei at the fivemonth high. The concern is with recovery in the u. S. Consistent am a they raise rates sooner rather than later . That is the only blemish. Hence the markets not rising as high as they could be. Overall, the dough topping dow jones topping 70,000. What about htc . Investors are pleased it has returned to profit together. The firm is the reason for this. Doing very well indeed. To profits, second quarter. Then they can beat estimates. Shares at a threeweek high. That is encouraging. Ask me a sports question. I better ask you about the next round of the world cup. The course of finals. Is everybody gearing up for their . There . For the chinese behind . They are behind germany. Thinkchinese economists germans think like them. They are supporting germany to win. Hitou know, they have been by flu. At least seven players. It could be thomas mueller. They have been hit by bad flu symptoms. France could be looking at favorites. I will be with german friends watching germany at midnight. Hong kong time. He has done well with his guessing this week after he said murray would be knocked out at wimbledon. A are getting details on how bank violated u. S. Sanctions. Court documents and people familiar, jpmorgan may have unwittingly helped the bank height transactions. Bnp would transfer funds from a Sudanese Bank to satellite bank. Transfer to jpmorgan without a mention of sudan. Jpmorgan has not been accused of wrongdoing. More m a. This time in the world of food. The worlds biggest cordon corn crusher is closing in on switzerlands wild flavors. Is this all about natural anducts in the desire the desire of consumers to consume more . We dont want weird chemicals and what we are eating or drinking. We want to be told things that are naturally sourced. An 83yearold company. It is all about getting fruit juices, all the fads that we are seeing. Drinks. The tea infused vitamin and mineral infused drinks. Natural flavoring. Flavored beers. There was a smile on your face. Theres a little bit of knowledge there. In over 30 countries, wild flavors have fingers in pies. Drinks and pies. This is a country that is not is able to sourced, kick into consumer trends. This is why Companies LikeArcher Daniels midland are vying they have won out a bidding war against the japanese. They beat the firstever maker of monosodium glutamate. Also our competitor a competitor. We knew at the beginning of this year that wild flavors were looking at their strategic options. They thought they might be selling. Amd isate that amd closing then in for 2. 5 billion euros. Clearly this is the trend and it is working. The bidding war has worked out for the owner. Who is set to gain from the sale . It is a privately owned company. Mainly held by mr. Wilde himself. 73s peter wild, 70 years years old. Hes the man behind capri sun. The pouch of orange juices that he has amos lee that he famously got mohamed ali involved in the rate involved in. That is not part of wild flavors now. But this man is 73. 26th apparently the five wealthiest man in the world. Has about 3 billion. That will go up if you cashes in. Individual. Or the thanks, carolyn. See later you later. The ecb has announced they were release minutes of their meetings. The new development. Welcome back. This is countdown. i am mark barton. Betterthanexpected jobs in the u. S. A record high for the dow. Giving investors plenty to think about ahead of the last trading day of the week. During us now, mike. Thank you for joining us today. The ecb will hold less meetings and publish minutes of those meetings. Should we applaud . This Greater Transparency . The minutes are probably the key thing. The ecb realistically in the next couple of years is not going to be changing policy anytime soon. Probably till 20172018. The minutes will give us a sense of divisions within the council. This will give us more nuance. That is important. It will be easier to predict the next policy decision. Absolutely. The market has more confidence in that direction. Market take away is the is getting more of a sense in terms of the total size of the maximums mentioned a allowance of one trillion. Expects it to take up the first set of operations. Or to meet the full operations. The markets to looking at about 700 billion over the next two years. You add that to the qe. The Central Bank Balance shake she will expend 12 . Does that mean volatility stays low . You also have the sort of situation that you dont really have any major adverse events on the horizon. One of the big stories people thought could blow up as china. Is china. Benas authorities in to controlling it well. When the market tries to identify something that is going cannot seesk, they anything. There is a sense that bullet to it he will remain low. 17,000 for the dow is just the beginning . The problem with the equity market is that is already stretched. People are looking at diverging market equities. Theyve oust back since the beginning of the year. Emerging market asset classes. They are still cheap relative to the u. S. Moneys where the smarter is going. Where is the smart money going if you are a currency investor . The dollar index has been stuck in a narrow trading range for of 10d best part months. Does yesterday change anything . Mario draghi said rates will stay low. We have maintained our extended pledge. It is the that matters now. Got is the data yesterday confirms that q2 should see a sharp bounce back. We are not at the point yet where the fed is going to prepare the market for tightening. That is a 2015 story. The market is being very selective in terms of currencies. We like during sterling. Theres no doubt that the u. K. Is the middle of an internal rate about when to raise debates. It could be the end of this year or early next year. They are members, singing from the same head sheet. If you look at the relationship in terms of Interest Rate expectations and sterling, we think the euro 7750 can rise to within the next 12 months to 75. Lots of potential for the pound to rebound. In pound got severely hurt 2007, 2008. We were trading at 60. We have some way to recover now. You mentioned charlie dean. Are you in this year, a rate hike . Or early next year . Epic is probably going to be later this year. They will also be very careful thevoid the market, shooting in terms of rate expectations. This is the critical message they will get across. It is gradual, dont worry. Report. On the u. S. Jobs a surprisingly big beat yesterday. Mike from idea global. Stay with us. Welcome back to countdown, i am mark barton. Back with us is mike. Thanks for sticking around. Jobs yesterday. Down to 6. 1 unemployment in the u. S. Is it time for forecasters to tweak their productions on when the fed will hike rates . There has been tweaking that has occurred. Some have wondered whether the first hike will be brought forward from the summer of 2015 to spring. The third part of the report was the earnings data. Are looking closely at the relationship between the labor market and Wage Inflation. We are seeing better labor markets are not automatically the leading to higher Wage Inflation. The phage the fed are waiting until Wage Inflation picks up. Is that the right policy . Economists would argue no. If you do see a true trend higher in Wage Inflation, it is little bit late. By the time you come to tighten, it takes another 12 months or so. But this fed once to wait for clear evidence. You can understand it. This cycle has been unusual in that you have seen a lot of the hangers from 2008 hangovers from 2008. That could be making the relationship to friend. They want to see the proof of the pudding. Towards be inclined summer, 2015. Is the fed behind the curve or not . Some say it is. The markets are way behind. Will that gap narrow . I think the gap will narrow. But it will not occur until we get into 2015. The fed will keep the sentiment in the nine benign. Voicese are dissenting who are going against the grain. Of dissenthe start within the fed . The fed will have some dissent. Not the degree of tradition in terms of openness that exists in the bank of england. Therefore most people will go with the yellen view. That is good enough at least through the remainder of the year. That is why we think the the quantity will dominate rather than the fed rate expectations. 2015 will be a different trading world. It is. The bank of england could be hiking. Can we find ahead or is it too early . Is too early. When do we start making our moves . October, november, the market starts thinking about 2015. We see some risk off, u. S. Bond yields rising. The dollar rising. For now, it is risk on. Selectively. Pick the ones that have lagged behind were the ones that look out of context. We dont like the swiss franc because it has not had a big shakeup. We think that is vulnerable. We are in a different world. Not the safe haven world anymore. Mike. The readjustment. Overall, fx volatility is officially the lowest since 1992. Will trade higher, will the market reassessed when the Federal Reserve should hike rates . They want to look at the Swedish Krona. Cut rates by 50 basis points. The world is not expecting that. Work is family saying that this currency, that is not exactly what i wanted. Krona,e go, the swedish the right notes. Morgan stanley say this is one of their top currencies on their list. We are talking about the repeat, back to you. Barack obama, the german chancellor have agreed to coordinate u. S. And european steps against the country. According to an email statement from the white house, if russia doesnt deescalate tensions in ukraine, the powers may pledge more potential costs on russia. Jpmorgan may have unwittingly held bnp transactions. This week, the biggest bank rate to 8. 797 billion settlement. Hid billions of dollars in transactions involving sudan. The money was transferred to jpmorgan without any mention of the country. Jpmorgan has been accused of any wrongdoing. In brazilas collapsed killing at least two people and injuring 19. The collapse took place on a main avenue that was being expanded for the world cup. When the project was completed in time for the event. Merkel isnd, angela said to pay an official visit to china will stop the focus of the trip, the seventh two china will be Economic Cooperation and trade. David tweed joins us from hong kong. Welcome back. Merkel is heading to chang tzu which of course is the capital of dishes one province in western china. Why there . Well, it is not actually a state visit that she will be honored because she is not the head of state. The chinese treat it like a state visit. One of the things in the that they must visit one of the other cities outside of beijing. From what i understand, speaking to diplomats, there will not be any deals assigned. Volkswagenl go to a plant. She will visit a training facility. It is actually really symbolic what shes doing. , theyre trying to develop these mainland towns. Them for two Million People there. It is one of the second tier chinese cities. What theyre trying to do is to get more investments from companies, European Companies which tend to cling to the chinese coach because that is the most economically developed. Art fo they will have the head of gw. This will be checking out to see in the future. Does she like her spicy food. It is funny you should ask. With the thing that she will do when she is in town is she is going on a tour of the local markets. Then she will visit one of the best restaurants. Yes, apparently she will cook the dish. This consists of chilies. I love that. She has to be used to having a few spices on her tongue and she is going to eat it. Carved after the dining, there will be the the policy and she will need shes thinking xi jinping. Click there will be the signing of a billion euros worth of deals. We dont know what is coming up there. We will wait for that. There will be a discussion about diplomacy, about regional issues. Im sure that Angela Merkel wants to know what chinas position is with regards to its assertion in the south china seas. More importantly, germany is looking very carefully at the relationship between russia and china. Particularly, as some are arguing that the u. S. And the eu , their actions in ukraine in a away are pushing russia towards china. We saw bad gas deal signed, it was just last month. They also signed a Foreign Affairs cooperation agreement. , we saw on that deal signed it was last month. In the un security council, china has been abstaining from any votes to deal with the ukraine. That will be definitely high on her agenda. A quick question, are you settling into life in hong kong . Do you miss london . I love it here. I just put in offer on a horrendously expensive apartment. 15 below the market price. And they accepted it. See you. If you think your morning cup of coffee is expensive, think again. Sells kilos of coffees for tens of thousands of dollars. Why the hefty price tag . The luxurioushat Morning Coffee is all about. We are purveyors of the most exclusive coffee and we are the only ultraluxury coffee. Andre the chairman cofounder. This is 10,000 dollars a kilo. About 60 pounds in cap. This is 300 pounds at cup. People think about it because we are exclusive. Russia is very big for us. Europe is very inc. For us. It appears with such a small family business, a lot of our clients are people that we have known for a long time or the friends or colleagues of these people. We will make your coffee for you. The question is people say it is growth. It is like anything in life. We have something quirky, something different. And it is something very special. It is like finding champagne, truffles, caviar. This is the caviar. Alaska both coffee i had, 2008. The last cup of coffee i had, 2008. Image taken a battering after his quarterfinal loss . Plays its first ever world cup quarterfinal today against brazil. Columbia is given a 29 chance of reaching the semi finals. In france and germany laying in the other quarterfinal. Police are broadening an investigation into world cup ticket scalping. It might improve the possible involvement of a fee for member. Fee for arrested 11 people in connection with the world cup scalping ring. This ball is more aerodynamic than its predecessors, it travels asterisk, speeds of up to 25 meters a second. This years tournament has seen 154 goals so far, just short of the record of 171. Corruption allegations continue isfollow the governing body paiding claims that qatar bribes to host the tournament. We spoke to the Government Committee about the scandal. Current culture . The culture was one, they saw themselves at the family. They think they know best. They would not have such a sway as they have in the world. Of overduces an income a billion dollars from a single product which is all which is of course all they have got. D as World Leaders wherever they go. Their culture was not modern, not the standard of ethics that you need. Ifathe allegations are that f is simply mired in corruption. Those are the allegations. What do you say to that . He cannot deny that it is an extra ordinary state of affairs when you have a number of executive committee having to leave office because of corruption or been involved in inappropriate behavior. Is, but have they done it. They