Welcome to countdown, i am and edward. Good morning. The fbi is investigating a coordinated computer hacking attack that targeted jpmorgan and for other major financial institutions, according to officials familiar with the matter. It is believed that the hackers were russian and were retaliating against u. S. Sanctions against moscow. They have stolen data. This comes down to proving who possibly attacked jpmorgan and it has not been decided. The trail is muddy. Investigators are considering the possibility that it is cyber criminals from russia or elsewhere in eastern europe. The fbis involved, the National Securities involved. You may recall the u. S. Considered sanctions or not against russia. Could it be that statebacked hackers do they have the sophistication . The sophistication level with which this has happened is a hallmark of a professional. Apparently a Software Flaw allowed hackers to get in and Remote Control computers. It is apparently something that a hacker is not able to achieve but state hackers could. The russians have some sort of previous they have used this type of tactic in the past against estonia and georgia. They brought down government websites. Jpmorgan hasrse, been the brunt of russian ire. And from the Foreign Ministry as well in april. It blocks a payment from the russian embassy, and the Foreign Ministry called the move by jpmorgan illegal and absurd and it was rightly criticized widely criticized. It was already at the forefront because of its actions. I think it is important to say that the distance between, even if it is proven that you have some form of highlevel hacking that is gone on, the distance between that and retaliation by the United States of america or response in hacking cases is governed by the threshold of a military response by massive economic harm or the potential loss of life. Thus far, neither of those pieces seem to be the key. Jpmorgan has so far said they have no comment as to whether they have been the victim. They have said they have filtered cyberattacks on a constant basis. 200 million a year to protect. That cost could go up. It could affect their net income in 2013. 1 of their net earnings is going on Cyber Security and it will grow. That is a big sector if you add up all of the banks. French politicians and ceos gathered near their sigh near versailles, following a week of political turmoil following the resignation of president ho llandess government. Caroline . Good morning. I wish i could say that Business Executives are reporting well. They say that the new economy signals the Prime Minister and the president want to continue what they called their full business policies. There was introduced earlier this year a responsibility pass that includes 41 billion euros in tax breaks, exclusively to of the, the head of one biggest utilities in europe, specialized in water and waste management. He says 40 billion euros might not be enough, that this reshuffle is a good thing. Towhat i think is important, have one single cap net working working as cabinet a team. I think the situation has been clarified. For the rapidity of action which i think are necessary. Now of course we have to see what is going to happen when the Prime Minister and the president plan the parliament. As a result of this reshuffle, he doesnt expect any Major Political turmoil in france in the coming months. He says that the political crisis in france is not over. Business leaders like probusiness policies. They also likes urgency. Certaincy. What is the message they wanted to give to the Prime Minister . How was he received by the Business Community . Minister prime that was a big event yesterday. He announced the reshuffle and he was received here he received a standing ovation. Up Business Leaders stood and applauded him. Pretty wellually received, giving confidence to business in france to invest in oyment is stilll very high in france. He wanted to accelerate the reform. When i asked frances largest insurer about this what he thought about this message and the debates that was his response was interesting. It is the first time the partywe see the socialist coming to meet business guys. Telling, i love you. Corporations, the private sector, i am supporting you and the success of france. We have been waiting for a long time the type of radical change that started with tony blair, the old labor. The support of, corporations in the u. K. They are comparing the Prime Minister to tony blair. So that was pretty interesting a pretty interesting message. We will be talking to many more executives here. Know, he represents about 760,000 companies in france. Back to you. Thank you very much. S carolina saying, the president will be joining us on that conference. And later on we will be speaking to the director of the world bank. Stay with us throughout the day for more on that. Australias Biggest Airline says it will return to profit after investors overlooked a record loss. Paul allen joins us with the details. We have lost and we have a forecast that it will return to profit. Yes, it really is a tale of two stories. The headline number was absolutely awful, 2. 84 billion loss. Most of it was made up with the international fleet. The historic cost of aircrafts the purchased back when Australian Dollar was more in the mid60s rather than where it is now, in the 90s. They say reflects the fleet value. If you are looking for Silver Lining to that earthlings cloud, the underlying loss was 646 million. It was expected to be much more than that. It is to say, there will be no dividend. He said that it represents that we are through the worst. He is taking a careful approach, through it true billion dollar 2ansformation program two billion transformation program. Crucially, the sale act has recently been amended, which is going to allow them to go looking for a foreign Equity Partner and more foreign money. That is really the story of the markets and we are seeing shares go up by 7 . Can the chief executive hang on to his job . Well, that is the critical question. He has been there for five years and we have heard it all before. This is not the first time qantas has said it is about to turn the corner. He has been there five years and has not leaving himself immune to the changes. Was 5. 1neration million, more than the combined ompanies, thatr c little piece of information comes from the independent senator who unleashed an incredible spray against qantas this morning, calling it a fiasco. Out that it has since been staggering from lost loss. However, there talking up the transformation strategy, promising the company will return to profit in the first half of 2015, and i would say it is probably time to deliver. Thanks a lot. Qe or not to qe, that is the question for the ecb. Find out what Morgan Stanley thinks. The answer should be when we talk to them after the break. Time for todays company news. A program to buy assetbacked securities. June that he was intensifying preparations to buy them. The Chinese Ecommerce Company alibaba reported a surge in firstquarter profits, boosting spending on its mobile lab forms. It almost tripled in the last quarter to just under 2 billion. These figures are likely the last before the Company Goes Public in what could be the largest ever american ipo. Private equity firm terra firma is considering a sale of Garden Centers. Firma bop business two years ago, and could be valued as much as 700 million pounds. Yieldsgovernment bond continue to hit record lows in spain in germany, italy, hol land, and finland. How low can they go . Hi, anthony. Thanks for joining us. This was obviously caused by those comments from mario draghi last friday. How much lower can the hope of further action by the ecb yield go . The frontend seems to be pricing in around 40 chance of extra accommodation. Anything by draghi at the next qe iseting as far as concerned, the market is still a bit ahead of itself. Your area would have to enter into some sort of recession rather than just the low growth where we are at the moment. You have to get inflation, instead of below inflation we are seeing. Deliveredhe ecb has in the past when Market Expectations were off. Thats a people are hoping for. Why it us understand makes sense to pay the German Government for the privilege of lending their money for up to three years. Enlighten us. There is a structural trading reason why this is happening or is it because people are forced to buy this stuff, is there a reason this is a good idea . Whats the alternative . You have to give the money to the ecb. Two basis points seems the least of all evils. Certainly we have seen extensions out into the periphery. There is an avoidance of buying at negative rates, and you have seen its done very well. If the alternative is literally giving it back you have to make decisions. The least of both evils. The headline yesterday was that blackrock helped ecb along the way. That is very different. If you look at some of the a 2es acidback is trillion market back in that slumped. They are very different to qe. Do you think the market has over appreciated that qe is on the table, when what we are being told very clearly is a cidback . If the announcement in september is literally, we are just going to accelerate the assetbacked security, i think the market will be disappointed. The market is certainly looking peoplle know that that is coming, that the appointment of blackrock is clearly a step forward. But if that is the announcement that drug is going to give, the market is ready to go further than that. Is there a middle ground, that could appease the market, cutting Interest Rates further by five or 10 basis points . That . It do that is a very precise measure. I think, since june, they have basically come back to rates remaining at this level. They could easily say, at this level or lower, easing at some stage in the future. It is going to be a difficult balancing act. Maybe he fleshes out a largescale Purchase Program would look like, not saying that they are in any way closer to just giving a bit more detail, making it a bit more realistic. More from anthony in the second. This is countdown. Welcome down to countdown,. Lets start with the eurozone for just a moment. What we know about the draghi fixated on the inflation number we will get this week . Politics and his relationship with the london bank . I think it has remained around 2 for a long. Of time. A long period of time. That is his trigger. They put a lot of faith in that being longterm and saying hicp, is it broken . Hicp is anchored. If it goes below 2 , the ecbs target is close to below 2 . Its not necessarily broken but it is heading in the wrong way. It had been a pretty Stable Movement for the whole year. Whats the next move . You said you would much prefer to sell rather than european bonds. Is it that simple . I think it is. Give at someot to stage and i think maybe we have to wait until we see the whites of the eyes of a rate rise in the u before we get the message the euro was going higher. Markets need to be convinced that any rise will be limited and gradual. We have kind of all bought into that. Take the first move and then people questioning the speed of right hiking cycles. Particularlying, move of whenhe the hike is going to come, is there a belief on the trading floors that it will be gradual . What is the deeprooted suspicion about the bank of england . Its a very good point. People have criticized mark for confusing signals that he is given, however the market seems to have gradual and limited. I find it strange how much faith we have been putting into that. Perhaps it is just a sign of interpreting where yields are. Actually, we are rates might go up further in the future. I think it might just be an interpretation of where euros are. Weree latest mpc minutes cautioning people you were right, because we got to hawkish calls. How quickly did those two hawks turned a five hawks . That is the big question. Thewhen does it lead to rest of the member saying, ok, lets just get it out of the way. Is there a majority on the committee saying, we are just not ready for it yet . There are new members who we know very little about. There are a number of known unknowns. It will be the Interesting Development in november. Thank you very much for joining us. Anthony obrien. Up, French Telecom the numbers. Welcome down to countdown. Theto see what is driving Foreign Exchange market. The back story is that the u. S. Gdp dosh the dollar is a little bit soft the dollars a little bit soft. It is the biggest tech line on the board this morning. That is setting us up to look at a couple of other things. With the euro, you are seeing the swiss bank at the strongest level in 21 months. Will they intervene for the first time in two years . And it was120 said two years ago that there would be no exclusion. What youve got is people buying swiss bank, selling euro the qe discussion is explosive for the swiss bank. That takes you into a real center of what is going on with the dollar. The dollar is heading a threeweek high up against all 16 major currencies that we measure at bloomberg. There is a rebalancing in the australian economy. The dollar is weaker, the aussie dollar higher. Topser the bloomberg headlines. The fbi is investigating a hack attack on jpmorgan and for other financial institutions, according to officials at familiar with the matter. Is believed Russian Hackers were behind the Security Breach and the loss of gigabytes of data. Officials believe that it could be in retaliation to u. S. Sanctions on moscow. So far the stolen data doesnt appear to have been used to commit fraud. The u. S. Says russia maybe directing a counteroffensive. That is fighting in the battle torn countries in those regions. The Prime MinisterBenjamin Netanyahu and his truce with hamas a political and military victory. Yea Prime Ministery is being criticized. The tractors saved thousands assured israels security. Breaking news. N offer for the gbt unit is the battle over this brazilian asset that has been the key. I know. I try to tell. Sell it off. Telefonica tried to move it. Is this enough . Billion euros, we understand that later today, theyre going to come back with a renewed bid with 8 million euros. Have got to you get down to the nittygritty, because this isnt all in cash. Offering stakes in yourself, stakes and emerging companies. What they been offering so far as a 20 stake in itself, selling its own shares to the french conglomerate. Then also a stake in the combined brazilian unit. Ca is offering about 5 theion worth in cash for brazilian combined unit. It really comes to this point of whether they want italia itself. There is one thing you brought through time and time again why would they want to deal . And the key word is disseminating content. Limiting access to a myriad of platforms and italy. According to people that, it is that exactly. It sold sfr earlier this year. Why do they want to have skin in the game when it comes to telecom . You can expand your content into new and interesting areas. Muchonica want it so because the home of markets are shrinking. They are not demanding revenues in terms of their mobile quite so much. We can call on skype, we are not using our mobile way we used to. In brazil, youve got gdp and 12 of the market on the internet, 9 of the market in terms of landline. Less competition so they can look to expand, tapping into an emerging market. They have gone from 7 billion euros, and all caps very murky how much of Telecom Italia will it end up having . Its a big shareholder in Telecom Italia. That. Ont like do they sell their stake . What about the regulatory issues within brazil . They may not let the deal go through. Thats what the problem is, do you want more consolidation . Both of these options are for merging with the rival, but they want more competition, not less. That will be a really interesting take. How can they promise brazil more competition . Would take aalia stake in tim. Cash. Telefonica is a bit heavier in terms of cash. We have got numbers coming out. Frenchygues is a conglomerate. The third biggest player in french when it comes to mobile. France when it comes to mobile. They have had a tough fulltime of it. Tough old time of it. They are desperate to either merge or exit the business. As it stands, it is too competitive in france, there is a price war. Iliac is shaking things up and bouygues has not managed to perform. Catch generation has been down. They are cutting the fouryear sales forecast. The conditions are even tougher. It will fall to 1 2 . They are opposite to brazil. They will have fewer players. They want to go back to three. Them tohe doesnt want be a leader in the consolidation process, they will think the other three leading Telecom Providers should leave when it comes to consolidation. They have the most regulatory issues. Its about 20 owned by the government. This is a key concern. We want to see whether iliad comes back. Iliad had a discussion with bouygues and it was rumored today it comes down to valuations. Billion, iliad was offering five to 6 billion. There was no deal to be done. There playing a very funny game. They came in well below what people were familiar with. Thinking that already sprint had offered. They thought they could sneak one in. Oursame way as they lowballing. It is a ballsy strategy. Desperate. Is in that many are left scratching their heads, thinking maybe if they are going to buy assets they wont have the money to start doing it in france. As it stands, we know earnings are going to be under pressure. They sa