Standing by across the world, ready to deliver the stories that will drive your day. The best of 35 million worth of samsung product. Berlin nichols is in following bmw as it struggles to keep its lead against audi and vw. Finance ministers gather. Coming up on our break, the gold industry supports plans to change how the Precious Metals benchmark is decided. We have an exclusive interview with the World Gold CouncilsNatalie Dempster. That will be at 7 30 london time. Samsung has disappointed investors with its secondquarter earnings. It is protesting a recovery for later in the year. Eh . Ng misses the mark, the Third Straight quarterly drop here at 24 . Samsung has forecast for the second quarter. Multiple elements at work here. They say increasing competition from lowcost chinese vendors, even some european vendors have an impact on sales. Apple wrapping up its competition in the highend space, particularly with those phones with the large screens which will go on sale later in the year. Has, the korean won appreciated. At work heregs that have contributed to this decline. The good news, samsung forecasting a return to profits in the Third Quarter. Increasing sales in china is booming. We will see if that comes to fruition. Samsung is talking about how some of its employees have been taken hostage and the fact or he in brazil, maybe some phones stolen . Tell us about that. This is a curious story. You dont expect the Worlds Largest smartphone maker to become the victim of thieves. That is what happened monday morning in brazil. 20 bandits apparently held hostage 50 employees. They came in 10 trucks and made away with 40,000 units rodda like the galaxy tablets well as the galaxy smartphones. It adds up to 6. 4 Million Dollars in stolen goods. Police say they may have an idea of who may be responsible. Samsung is happy that no one was hurt and that insurance will pay for this. It goes to show that if you are a major global electronic brand with security, you may run into challenges in a place like brazil. That is a remarkable story there, guys. Memorabley the most story of the day, thank you very much. We will get a snapshot of who theeading the race to be Worlds Largest luxury carmaker. Hans nichols joins us from berlin. What are you looking for in terms of numbers from bmw . Were looking at the margin to see if bmw retained its lead. We already know who is in third place. That is mercedes, the iconic rant. Take a look at them. We have mercedes in the 783,000 range. Audi a good 100,000 more than that. Take a look at china. You have seen explosive growth in china. Audi is an entrenched brand there. At 100 35,000. Audi all the way up at 265,000, almost double mercedess sales. We will wait to see what bmw does in china as well. You see mercedes strength in the north American Market as well. They are at 151000 and audi all the way down at 84,000. Last year was a banner year for all the luxury automakers. It looks like it will be another order of finish this year with numbers that frankly are eyepopping. Hans, tell us about the Great Expectations for mexico. Some fairly fortuitous geographical positioning, i suppose. It is partly geography. Jim w will be opening their second plant in north america in mexico. They have one in spartanburg, south carolina. Labor costs are lower in mexico. Take a look at this, a billiondollar plant that they will be building their. The capacity is to build a hundred 50,000 new autos. Look at the Auto Companies and they have some legacy debts, which are north america and europe. Then they have the china bets. It is really in china where you have seen the explosive growth. They are selling suvs there, not convertibles. Hans nichols joining us from berlin. Finance ministers are in brussels amid a war of words between italy and germany. Matteo renzi is pushing for more flexible approach to eu budget rules. Jonathan ferro joins us. Is he going to get what he wants . He may well do. What he wants is not very clear. It is up in the air at the moment. What he goes back to is a debate over Jeanclaude Juncker. At some point it looks like matteo renzi and italy may side with the u. K. Then i did an about turn. It had nothing to do with the u. K. And very little to do with Jeanclaude Juncker. They had more to do with Angela Merkel in germany on an issue, getting her support to get a concession later on. Pushing for budgetary flexibility. The dutch finance minister. Something they may think about. Yonkers is pretty much a done deal in any case. Kers is pretty much a done deal. Is the prospect of a third greek possible . It sounds like the greeks wont have it. Is that meaningful . If the greeks dont get it, of course is meaningful. Presumably under the conditions that are being offered. Was really interesting for me right now is the debate with matteo renzi that erupted last week. He pretty much pushed back at what matteo renzi was saying. For matteo renzi, the European Central banker is not a politician and is not any part of this. What interests me is the war of words between those two. That is what we are talking about. And matteo renzi. Europe longs to european citizens, not to bankers. Now, is that if this is up for debate today and theyre more flexible on the budget side, the risk i saw will start to level off. It proves there is flexibility for the budget, but they dont push forward on reforms. I find it amazing how the want to argue for more flexibility, which is basically what germany did some 10 years ago. And it worked. It work for germany and these of been the ones that have been expanding austerity. Still to come, only in an emergency as one ecb Board Members said, they should only consider the gram such as quantitative easing if the european area is on the verge of deflation. We will talk about whether we are on that verge or not. Stay with us. Time for todays company news. Profit at samsung missed analysts estimates. The stronger currents he undervaluing overseas sales. New product and demand for displays will boost Product Sales in the Third Quarter. Could be valued at more than one billion euros. Siemens is artie spinning off its hearing aid unit. Exploring a sale of its business almost three years after it was taken private. The belgian overthecounter Health Care Company could fetch more than 4 billion. Welcome back to countdown. Im an edwards. Im anna edwards the Central Banks longterm loan program will take time to stimulate the economy. Or need at expect quantitative easing in europe any time soon. For more, were joined by the head of fx strategy and much more at nomura, i want to ask you about the euro. Is 1. 362 high . Value and ise the that happening . If you look where the euro has been traded, we are right in the middle of the range. In that respect, maybe it is fair. He also have a record Unemployment Rate at a deflation problem. This is where youd expect the currency to trade cheap and it is not. I think that is a problem and airbus why you see the comment earlier today. Theres a need to have some support for the currency, not just having a neutral currency. We are not getting it yet. I would say that measures have been taken by the ecb in recent have at least stopped the euro from strengthening further. The flow is showing some signs of moderation. Would it be fair to suggest that the policy enacted by the ecb last month has not been affect of . We dont know whether the euro would have where the euro wouldve been had they done nothing. The euro had been on an uptrend since the summer of 2000 12. Now it has stabilized. Maybe the policy has been successful in that regard. What do you make of these comments about patients . Patience is a virtue. The quantitative easing that was expected for some people to do has not been forthcoming. Yet still the euro remains at these kinds of high levels. Why is that . Why is it so shy . Does it have to do with flow going into european equities . Last year, we had 250 billion euros worth of foreign money coming into eurozone stocks. That definitely played a big role. That flow has continued up until very recently. I follow these indicators very closely and it week to week basis. Now theyre looking at bit softer. The big picture strand is still strong. I far as quantitative easing, think the ecb is looking to see what is the effect of the measures they have already taken. That is going to take some time to see through the system. I think by the end of the year they will probably come to the conclusion that these are not going to materially alter the inflation all outlook and then they will have to make that choice. Emergency situation . Is it enough to trigger qe. Is it going to amount to anything . This is a fundamental debate within europe. We have obviously implemented very tight budget rules during the crisis, and it is a straitjacket. It is very hard for these countries to generate growth with a debt overhang that they still have and the inability to have flexibility in their budgets. This is a fundamental debate. Does renzi have a point . Flexibility when they made changes to their economy. Now italy at the same situation and they should also be allowed flexibility. I think he has a point. What do you expect if we move over to the u. S. From the fed . We saw the s and p fall a little bit yesterday. Some concerns that the decision to hike rates might come earlier than originally anticipated. Theou think that is on curves . Yellen doesnt sound like she is hiking rates, does she . It sounds like she hasnt really looked too closely at the data. Even the uptake we have had in inflation in the u. S. Over the last three months, the chad the fact that she is not changed the tone at all on the back of that suggests to me that she really wants to eventually they will have to change and it will be very binary from being one side to the other side. Why isnt there a bit of gray when it did when the data is improving . Not responding to the data in a way that you think she should the . At think it has improved very materially over the last few months. I think the said should recognize that. The minute they recognize that the data has improved as you suggest, people will stop speculating even more than they already are. I think it is ok to have some speculation. Have some uncertainty in the market rather than pretending that his rate hike is very far away. I think you will see other howght need to close is the fed rate hike . When is that hike coming through . I would say our debate is whether that could happen earlier. If the Unemployment Rate continues to come down as fast as it has recently, i think the risk is it could be even earlier. How about the aussie dollar . Youve called it one of the last trades out there. Is it going to continue or is that pretty much it and people are starting to get jittery . Mode have been in this where they have done very well. In addition to that, the risk around china has faded away. That has been the background for that trade. I think most of the volatility youll see in this quarter will be about the fed. From the new figures fed we will see a turn in the aussie dollar for the lower. , stayd of fx strategy with us. We would get a little tour around the world and we return. Ery welcome back to countdown. Im ryan chilcote. We are back with you and jens big of nomura with norvig of nomura. Are at quartercentury lows now in terms of fx market bulletins. I would say every investors speaks for some movement in the market. There have been very narrow ranges over the last couple of weeks. Muchdnt really get movement. I think you are right, in terms. F catalysts for volatility i would say the equity market has also been very stable for the last several months. If there is some retracement there it will always shake things up a little bit. The main thing i am focusing on in our research is trying to get the timing right on the fed. I think it is absolutely crucial. Exactly how does the fed and their discussions provoke volatility . Because there are various Board Members and they may disagree and people try to read we haveves or a situation where we still have very shortterm Interest Rates. We have that for a multiyear. I think it will be a major shift in the market because you have , who reallynvestors taylor how they fund their positions and so forth based on the specific constellations. If that shift, even though moderately, it would be a big change in the market. I think that is what we are looking for as a catalyst for movements in Interest Rates, currencies and other actives. We saw something that was partly fueled by concerns of Interest Rate hikes might come sooner. That something we should expect to continue . Yes, that is always a risk that we have at this point in the cycle. Runup,had a good multiples have expanded considerably in a lot of places, including the u. S. Discount factor goes up, it is definitely a risk we have to be worried about. Be thisems to , the view ofeature the world as dictated by janet yellen. It seems to be the thing that everyone is hanging on. Another thing im focused on is this we have had a twoyear recovery with very strong inflows. I think that is showing some signs of moderation. Chinese buying of euros is a function of their reserve management. It is also moderating. There are a number of uses in the flow picture in europe that is looking less european. I think it is more a function of their ongoing accumulation of reserves is less. Their ongoing cash flow perspective, they had to buy less than they they have to buy less than they had last year. It is great to get your response. A stock with speedy returns. We speak with an investor who says not just bmws but bmw shares are going to push forward. Hes predicting a 10 average return every year for decades to come. That is right after the break. Lets head out to manus cranny for the fx check. I found a couple of interesting fact. Foreign Exchange Markets have profits by 7. 5 billion. Companies. It is europe that is taking the pain. Over 4 billion in corporate efforts have been hit. Rome is flatlining. The helevel of wanted down to 10 . Is that achievable . That is a note that i found this morning. The euro is becoming less attractive to 62 of the central bankers that were surveyed. Keep that in mind as you look at it. It is just juggling around. Originally we had the yen rising, we saw japan four surplus. Quarters of obviously, imports dropping for the first time in 19 months. The reality is that were just on sing off that low in the dollar, so keep an eye on that,. There is irony, but two. Israel has carried out more airstrikes in the gaza strip overnight. The strikes followed rocket fire by the Palestinian Islamist group hamas. Bulgarian finance minister has exclusively told bloomberg that the country has no plans to sell bonds to International Investors before next year. Unions course member and or its worst credit financial crisis ever. Ukraines government has accused the russian rebels of destroying seven bridges. This comes after ukraine recaptured territory in the east of the country from rebels. You leaders have said that sanctions could be applied as soon as today to more russian individuals if they back the insurgency. About what ise happening in ukraine, ryan. Process is being made by the sizable compared to the past three months of the crisis that we are seeing now. Taken calledy was crematoriums. Places like donetsk which is a large city, and lugansk remains. It is one thing to take a city of 50,000 to 100,000 and levels are really digging in. Onetzk is city like d where you will see everything coming out. It will be that much more difficult to attack. We talked about the richest man in ukraine who has a lot of factories in the east of the country, saying the Central Government must not bomb places netsk because it will casualties. Ive they could apply further sanctions as soon as today on russian individuals. This is just painful. It is like when i tell my son i am going to punish him doing something and then i dont, or i punish him in a really mild way heard my son knows when i am doing it. Thats what it feels like with the eu. Talking about an expansion of the list of individuals that would face asset freezes and travel restrictions. It is not a whole lot, it is not pictorial sanctions. Theyre just trying to catch up to the u. S. Countries like italy, france, austria, slovakia and others really dont want economic sanctions that affect their own companies. Theres another meeting coming isnt there . That is the operative word, could. I wouldnt bet on it, but that would be their opportunity if they dont do something in the interim. Lets talk about the car figures. Bmw will release its latest sales figures for the globe. He has money and bmw as well as some of its competitors like ima and porsche. I just took a look at the stock, it is up 10 this year. R big thesis is that this is the stock to own because it outperforms everything under the sun. So, give it to us. Outperformbly wont everything under the sun, but bmw owns a very profitable and sustainable business. Chart fork at a bmw the past few decades, you will realize that it typically performs with more than 10 plus per annum on average. I think these past performances are sustainable for the decades to come as well. Nothing has changed in bmws business. It is a Market Leader in premium cars. Those are effective barriers against entry from competitors. Let me ask you about that. Obviously, i get the fact that it is complicated to go from not making luxury cars to making luxury cars. There are a lot of midmarket carmakers out there that are starting to add some of the bells and whistles that bmws have. I am thinking about vw with its facade. Witht. Theyre coming out this function with the new card were you can see road information right on the window in front of you. No . Is a editor to bmw, t, bute not the passa maybe audi which is owned by volkswagen. Guess is there are five panies in the world that this is toyota and volkswagen and mercedes and bmw. Even if you have this technology, you cannot easily conquer clients of