The u. S. Has carried out its first air strikes in syria and represents a major escalation against the Islamic State mill militants. We have more. A big move but not necessarily a surprising one. President obama a couple of weeks ago said that the u. S. Wouldnt hesitate to strike Islamic State militants inside of syria and to that extent he has been good to his word. Because of the early hours this morning, the pentagon confirmed that the u. S. Had carried out strikes inside of syria using a mix of bomber and toma hawk land missiles joined as well by regional allies. Others took part to the extent that they allowed the us air bases on their soils to use as launch pads for those strikes. Couple of important things. First of all, the u. S. Has got support from its regional allies and would lend legitimacy to strikes being carried out inside of syria and the fact that they have now escalated to carry out those strikes inside of syria takes its battle against the Islamic State to a whole new level. What do we know about syrias role in this, the level of contact that u. S. And others had about syria before this took place . Interestingly enough, we knew beforehand that the u. S. Was invited by iraq to carry out strikes inside of iraq. No doubt about the legality there. Syria is a bit more complicated. Its biggest ally, russia, said putin would need permission. Interestingly enough, damascus said it was informed by the u. S. In advance of these strikes that they were going to take place, but doesnt mean that it agrees with them, that it wanted them or supports them to any degree. It will be interesting to see the syrian president assaad doesnt have much control over that part of the country and up until now he has been content to sit on the sidelines to try to beat each other. If the u. S. Succeeds in degrading and destroying Islamic State to any degree inside of syria and now he may keep his cards close to his chest and see how this one plays out. Manufacturing in china is better than expected. We are looking at the numbers. Hat is it telling us then . Good morning to you, it may be telling us that the target stimulus here in china is helping offset the weakness we are seeing in housing. The preliminary reading of this p. M. I. Coming in is 50. 5 after slumping to a threemonth low in august. Still in expansion territory and the factories are pumping out but right on the cusp of hitting contraction. The survey pegged the number at 50. Between expansion and contraction. The last time it was in contraction was back in may and got targeted stimulus and sentiment picked up and the numbers fell off the cliff and causeded us to pause. New lending all fell last month. When we got this interesting p. M. I. , we werent expecting a pickup, but we did. Targeted stimulus seems to be working. Will todays figure dampen calls for broader stimulus measures . It could. I dont think the government is listening too closely to those calls they are steadfast saying they wont overreact to shortterm fluctuations. And during the summertime, too. They have 81 billion liquidity injections, but no major stimulus. Reports are that the big banks will ease lending and overnight we got the chinas bay book report while the economy may be stuck in low gear because of struggling property markets, the report also said that hiring and corporate Profit Margins this quarter have improved a bit and this could help explain why beijing has a bit of reluctance to introduce more largescale stimulus. Thank you for reporting from beijing. Tackling tax inversions. The Obama Administration has announced new regulations to make it more difficult for u. S. Companies to move their headquarters overseas to lower their Corporate Tax bill. Our International Correspondent has the details from berlin and how far do the rules go, because we talked about u. S. Companies making the most of these rules many times so far this year . There are eight pending deals that would be affected. These new rules are not retroactive for deals that closed before yesterday. So if you got in the wire before september 22, you are in the clear. What it does it prevents socalled hop scotch loans if a u. S. Subsidiary has abe broad and rehead quarter their ompanies for tax purposes. Metronic, burger kings purchase of a chain would also be affected. Heres what the actual rules do. What you have here, their purchase is loaning some of its untaxed profits outside of the u. S. To its irish Parent Company and that would be penalized by treasury. Treasury secretary said for companies considering deals means that inversions make no economic sense. 13 deals have been announced. And look at the burger king, total number for this year 173 billion. But looks like it would affect the eight ones that have been announced but has nt been completed. Future deals, it will always have an impact. What does this do with the overall tax reform in the u. S. Looked like it might be caught up with a larger project. Republicans are crying blood murder and said they want to do something comprehensive to lower the overall rate. This will muck things up before the midterm elections. No deal was going to get through in the next two, three months. If anything, it would be an early 2015 project potentially when republicans control the senate. Looks like any legislation may be happening this year. It may poison the waters, but allows the administration to say they are doing something about these companies that are inverting. Thanks very much. Join in the conversation whether its telling us your views on what is happening in hina, in syria or elsewhere. We run forecast in each country. How do you have the resources to do that . Time for todays company. Ews, swiss bank has to pay ubs said it is disappointed at the decision and will appeal the ruling and fight the underlying investigation. The administrator will close 1,700 jobs. Ps and the u. K. Chain is selling off assets. 200 shops are being sold by e. E. The buyers will take about 2,000 stock members. Foreign bank most at risk in ukraine and russia predicted its first annual loss this year. Rates are rising due to the risis in the region. E. C. B. Will do everything it can to shore up europes economy. Draghi said his number one riority is to deflate in the region. He made clear why the e. C. B. Must boost assets. The economic recovery is losing momentum. Following some moderate expansion in the recent quarters, growth of the g. D. P. Came to a halt in the Second Quarter of this year. Chinese and european p. M. I. Data are out today. We have more on this. Chinese p. M. I. Data, a narrow beat, does that tell us that the targeted stimulus is helping china withstand this property slump . To a degree. What is not so encouraging is china again relying on exports for growth and we dont need another exporter out there. Euro zone is trying to grow. Other emerging markets trying to grow. What we need is domestic demand and it comes from countries like the u. S. And u. K. And hopefully others out of the euro zone. What investors were hoping is that china will emerge as a source of domestic demand that could support growth elsewhere. And from that point of view, the data is supported, but the overall picture may be one of subdued Global Growth. Too many exporters and few importers and Global Growth remaining fairly subdued. What does china need to do to increase the number in the middle classes . One important reform is linking productivity and wages and taking more measures to support domestic demand via better functioning banking sector. Thats the problem. Hampering Banking Lending when china needs balanced growth. If anything, a speedier reform there, potentially even more measures to shore up bank capital and providing that support for future domestic demand. Talk about the euro zone which you cite as one of the areas needing to export more balance and well get p. M. I. Data. It will be fairly flat if you look at the composite forecast around 52 1 2, what does that tell us . Similar to china, it has been the case the story this year has been resurging domestic demand like germany and spain. What is changing on the back of the lingering tensions between russia and the west. Yet again, if anything, there may be export growth on the back of growing exports to the u. S. Beyond that, domestic demand remains subdued and the data may continue to the point which if anything means that the e. C. B. May have to do more. Similar to china, it is about the leapeding channel in the economy. Consumers will have to be able to borrow against future income to spend today, which will have positive impact on the Economy Today so growth can continue from here. As lopping as thats not the case, euro zone may struggle to recover. Draghi was talking about high unemployment and other factors curbing the recovery. Many people point to spain and say, look what has been done in terms of reform but the unemployment picture there is significant. Issue. Reation is a germany spain, case in point. Very elevated unemployment. If anything, what draghi was saying, yesterday was a continuation of his speech at jackson hole. He was making the case for scal stimulus to avoid so the cyclical issues we are having at the moment dont go into structural issues. What seems like cyclical downturn he is going to put more pressure on the germans to spend more. It does include more spending by those with the savings. The exporters, if you wish, and the pressure is still on them to do more. How low would draghi would he like the euro to fall . Many say it is the last fight against deflation. Further drops to 120 which. Ould be consistent it would actually generate inflation. Which could then, core inflation remains subdued and falls further and may be the only option to deliver on their forecast. So it could be the case of aggressive. Last remaining option and they are realizing, if anything you do see them expressing growing concerns about the fact that inflation is not responding to all the measures that they are implementing. If anything, looking at japan for example, has been quite as clear if you are successful and push it low, engineer aggressive depreciation before long, you may get the inflation you want. More on the e. C. B. And the fed. Lots to discuss after the break. We are trying to bring some order to the traffic of immigrants to the United States from central america. This phenomenon is the lack of development and violence in many places. That was the president speaking to bloomberg about the illegal traffic of immigrants to the United States. Welcome back to countdown. You say a weakened euro boost inflation, but will it boost growth, though . To a degree, according to various experts weak euro does support exports and that could mean we could see a boost for growth. If anything, exports contribute close to a bit more than 25 to euro zone growth. But i guess you should using japan, a word of caution may be warranted. What happened in japan and i will say similar to to the euro zone, over the last 10 years, it was holding out the Manufacturing Sector in japan and Big Manufacturing Companies were actually exporting their production capabilities to lowcost destinations abroad. The positive impact from weaker currency did not materialize as it would have if they had most of the production at home. And importantly, again similar to the euro zone, japan is relying extensively on impovertied energy. Happened after the earthquake in 2011. And oil foras, Coal Production of electricity. Germany had Nuclear Power energy and relying on domestic resources. But they have to be concerned about import costs. Impact of weaker currency, you have support exports without necessarily boosting the value of imports at the same time. Difference between exports and imports. And weaker currency in the case of japan did not produce that. Can i ask you about the pound because we spend a lot of time talking about scotland and now the conversation has switched on to constitutional reform. Are International Investors applying a discount because of concerns about the levels of which the government will be distracted by this reform agenda . Many people believe that following the vote things would be better. That noise created by the referendum so we can focus on fundamentals and policy and improving economic output. It is the case that the referendum is having lasting implications. The constitutional reform, the initiative for english issues promoted by the Prime Minister is having an impact. There are two ways to view that. On the one hand if cameron is successful, that could mean the conservatives will have greater say to say next year after the general election on english issues, which necessarily not a bad thing for the pound. It shored up fiscal budgets. But the thing is at the same time, the labour, when it comes to english issues may be dealing with a Hung Parliament where the lead that the labour is enjoying may be taken away if the scottish m. P. s arent able to vote. If anything, a mixed blessing for the pound but overall, coupled with hawkish improving data. The euro and dollar, is there any currency you shouldnt shore the euro against . Dont answer. Well leave that to our audience. Welcome back. Thought we would look at the Australian Dollar climbing. After china data on manufacturing. Topped analyst estimates. China is australias biggest trading partner. Rising earlier against all of their 31 major pairs after the data yesterday. Since february 4. Currency of other commodity exporting nations fell yesterday after the bloomberg Commodity Index fell to a fiveyear low. When you measure it against a basket of 10 other currencies, second best major performing curnssi this year. Hats the story, aussie dollar rebounding after a sevenmonth low. Preliminary manufacturing reports. These are the Bloomberg Top headlines this hour. The United States has begun air strikes against Islamic State militants in syria. First time that america has targeted the Extremist Group in the country. The pentagon says the strikes are being carried out with partner forces. The u. S. Estimates that 2 3 of Islamic State fighters are in syria. Xports demand is helping the country. Contrasting with data from august that showed weaker growth. Virg georgia latic plans to irgin gal arch ctic feels they will go to space. And thats not very long to go. What held us up was the rocket. It took us a lot longer to build rockets that we felt completely comfortable with. We have now tested those rockets. They passed all the tests. , citizen e show financial group. Here more with the sale. Lets have the details. How much are they selling . 25 of its overall units. 140 million shares up to 3. 5 billion is up for grabs. And this is a way for going back into the u. K. And focusing on businesses and lenders here at home and to start paying down that it owes the government. The government took a hefty state more than 45 billion pounds. This is a huge sale. This is set to be the biggest initial share sale in the u. S. By a bank. Goldman sachs all the way back says it could come out with 14 billion. We will get the pricing today. 23 2 on the market for. Set to be the 11th publicly traded bank in the u. S. 1,000 branches. And this is amidst a company that didnt initially wanted to sell it. They didnt want to go for an initial share sale. Why is it trading why is it going to probably trade at discount. What is it about their performance . 23 25 would be just over one times net tangible book value. Now, 1. 9 times is the average. Coming in at a discount. But i think also this is a company that doesnt return not as profitable as other banks. They are trying to beef it up. T aims to double that. But kem pet competitors are ahead of it. Back in march failed the feds stress test. It wasnt foolproof. The fed rejected the capital plan and said they were flawed. Basically they had concerns about how you estimate revenue for citizens. They said under these economic tests, they didnt quite buy it. This is the first that it put u. S. You unit to the stress test. So it wasnt the only one out there. Not as profitable and didnt score that many brownie points. Some would like the business detached from the u. K. Owner. And there are some hopes in some quarters with that detachment might come appear ability to turn around . Yes. The finance director of r. B. S. And now chief executive officer for citizens and might have a financial benefit if it does sell well. Some reports say he could be awarded up to 5 million for his tough work but he is looking to expand and go into expand beyond. They have been hiring more. They could be hiring up to 550 people. They want to buildup and expanding, imagining more in the u. S. And then focus on themselves not having to worry about the fact that the owner isnt focusing on its subsidiaries. Look, this is a key component to r. B. S. Strengthening its Balance Sheet. Its a win for r. B. S. It allow r. B. S. To increase its capital ratio by two percentage points. By 2 friday, shares rows 1 2 . A one day bounce. Thank you very much. World bank ng president sat down with trish and explained why it was so vital to put a price on pollution. The chinese delegation came to me and said this is terrible. We are going to move much more aggressively. So for them, the cost was live. If you go to members of the world bank group, the cost is very real in terms of the water rising. Going to lose their country over the next decade and a half or so. There is something costing the world a lot. Now we have 73 countries that represent 52 of global g. D. P. Who have now committed along 1,000 Major Companies to move towards getting a price on carbon. When you look around the world right now and look at the United States and look at california, can you point to a specific example of places that has got it right . California is doing really, really well. The phillipines are doing well. If you look, they were just hit by a hurricane. I was just there