Hello and welcome. I am mark barton. A warm welcome to the first hour of the program. It is 6 00 a. M. In london. Lets get to the top story. More than 100 World Leaders gathered in new york for a United Nations summit on Climate Change. Among them was u. S. President obama urging action while there is still time. There is one issue that will define the contours of the century more genetically than any other. And that is the urgent and of a changing climate. The chinese delegation was there. Some commentators suggesting these are bold commitments coming. Bigger than they have made in the past. President obama saying the u. N. Money is helping emerging markets. Key to this conversation is the level of development. Obama has called Climate Change, which was a key part of it hasction campaign not been embraced by everyone in congress. This is the moment when the rise of the oceans began to slow and our planet begin to heal. They almost laughed at him. They say he would have no better luck with the tides than the 11th century monarch. We also have oxfam america. They say the policy does not reflect the whole the president s rhetoric. It would be impossible to to limithe agreement rising temperatures without more substantial action by congress. Oxfam saying more is needed by congress. Criticism for different reasons. What does business make of it, or what are they doing to help the fight . Here is caroline hyde. It marks it apart from there has been some declarations. Key among them was an oil and gas player. Coming here from europe. They said they recognized they want to be recognized as the most carbon efficient producer. Clean air, they want to see and share in best practices. They are committed to reducing methane. This is where a number of players got involved. They want to reduce methane production. There seems to be a growing voice for a price on carbon. Ring down ifu can you charge for it, whether you put a cap on it, or indeed you just tax it. Charge was that the five dollars per ton in a carbon tax. Ton for a carbon tax. Joining them coming have had nestle. 30 companies committing to saying, we want a Carbon Pricing. One that is a longterm way of making our own business decisions. It is the world bank doing some of the heavy work. They are sending Many Companies up. Investors as well. Mars came out, a confectioner will 2010 says they said they wanted all their factors to be renewable. And apple, tim cook come up paid a bit of lip service. Howre Asset Managers forcing the issues . One sure way to get companies listening is if investors say, we are not going to buy your shares. We were mentioned in this yesterday. A campus movement, gaining momentum. Its got a significant play yesterday. They managed to sign up Rockefeller Brothers fund. It is linked to the Rockefeller Family, which made most of its money from the standard oil company. This is a real sentiment to move for a company, born of the fact that it has made money from oil and gas, is shying away. They are not going to be buying the largest Coal Resources or exxon. You should be shying away from investing in companies that plow into destroying our climate. Investors, 188 billion california teachers retirement system, will boost investment in clean energy. 3. 7 billion in the next five years. Double tofett will 15 billion is investment in wind and solar. Once you have big money, once the money starts walking, coming as well walk the walk and talk the talk. Pfizer is launching another prize. They have expressed an interest in an acquisition. Our International Correspondent hans nichols has the story from berlin. Good morning. Pfizer does not seem to be deterred by the ruling announced by the Obama Administration. That would be one way to look at it. It seems to be the correct way to look at it. This is a fantastic story. Our colleagues at Bloomberg News broke it overnight. It shows what the u. S. Is trying to do to stop in versions, or rather the limits of what they can do without legislation. Even after the rules were announced, they concluded it was a convocation and not a prohibition buried complication and not a prohibition. Inquired acquired an irish tax domicile. They could end up paying the market cap, which is around 63 billion. The previous bed got hostile, a 14 billion bid. It was rebuffed. Share prices went to high. What is interesting is you look at what the u. S. Is trying to do in terms of stopping in versions. They are looking at the funding. If companies can find a different ways to fund in versions, the u. S. Is powerless to do anything about it. Bigmits articles pharmaceuticals have creative accounting and lawyers. Shares fell 3. 5 on this news. Are they still interested in astrazeneca . A personing to familiar with the matter, they are interested but they dont with the bid to be hostile. They want it to be friendly. There is a cooling off. End of that, they will and and have a chance for another bid. Here is the issue. It could be a november. That is after the u. S. Midterm elections. Love the political rhetoric of this might be dialed down. Inverting, however you refer to it, it may be more politically palatable. Thanks hans. Hans nichols in berlin. You can join in our conversations on twitter. M we will take a short rake. Break. Looking at the opportunities theoreign exchange with global fx strategist. For todays company news. Barclays was finds twice in one day for failures. It has agreed to pay a total of 77 million in fees. For the u. K. , they will pay a fee for failing to protect clients. The company replicates businesses from groupon to airbnb. They could be the largest for germany this year. They will list on the Frankfurt Stock Exchange on october 9. The american subsidiary of rbs raise 3 million in its ipo. To shedallows them assets and boost capital. The stock will start exchanging trading on the exchange today. Business the Business Confidence index was released today. Lets talk to a strategist. Today. Xpected disappointing data on pmo. Further more reasons to sell . We think so. Now, when numeral see the weaker reading in the ifo as well as , the euro has been trading heavy and this will be another reason for it to do so. Not just against the dollar but the t10 currencies. 120 seemed to be a key level. Draghi would like to move the euro down to 120. Where deftly headed to 120. We have 125 for the end of the year and 118 for the end of 2015. We think the euro is headed lower. Is between 120130. In fair value by some estimates, but we have some way to go given the weaker cyclical dynamics. You said in your notes that the tepid reception, the targeted loans, they are not doing much to support the euro. Draghi doesnt want them to support the euro, does he . He doesnt want them to be successful . Which is the most important to him at the moment . The trp owes are extremely trpostant to the ecu r are important. Look at the two to number two together and dont read too much. They look at a broad range of variables. They want a competitive economy and to do Everything Possible to stimulate growth. That includes boosting the liquidity. Having in the a Competitive Exchange rate. Ratesw germanys exchange are dependent on external demand and a weaker currency. They need to continue having strong export growth, particularly to china. Extra euro area trade is important. Domestic demand is weak. We think it was probably week in terms of take up because of the incentive to wait until december. The december number will be key. The plan is to increase the Balance Sheet by roughly one trillion euros. Will that include buying government bonds or not . Is the key question that everybody keeps thinking about you read and, we thought we would see broadbased asset purchases we think there is a 5050 chance that will still happen. We need to get the lending going in the eurozone. We need to get the transmission mechanism going. We have liquidity, just know banks lending. Is there danger of a qe program, the longer we talk about it, the less effect it will end up haveing . We know when Central Banks act earlier, it does tend to have a bigger impact. Truth. Re some trent but when they engage in more aggressive measures, it will have an impact. If we see qe, the euro will weaken. More chat on the currency markets in a minute. Phyllis. Shes the global fx strategist. Stay with us. Welcome back. This is countdown. we are back with phyllis. Lets talk about sleepless nights. Should we compare notes about how little sleep everyone had . Convinced the solid fundamentals behind the u. K. Economy rate expectations, that continues to push sterling a lot even in the face of of conversations about constitutional reform and devolution . Upwards is the way for sterling. Now that we have the referendum out of the way, we have a key uncertainty out of the way. People were really uncertain and about what the outcome was. In the the argument runup to the referendum that the fundamentals in the u. K. Are strong and solid. The pm eyes were wobbly last month. Pmis were wobbly last month. The bank of england was on course to raise rates. Political risk doesnt dissipate with the election taking place may . It all takes place in 2017 . Do we configure that into the thinking or not . The referendum will be a bigger event risk than the scottish referendum. Both the election in the u. K. As well as the referendum. That is next year. In terms of the mediumterm, macroeconomic policy and fundamentals in the u. K. , when you compare them to the rest of solid10, they look particularly against the eurozone. Euro sterling is a key trait of ours. Fox lets talk about the global forecast. Where you see the chinese growth story at the moment . How influential is that driver . People Pay Attention to china because they are a major consumer. They export as well. We are looking for 6. 8 growth. Sub 7 growth. There are clear signs that china is slowing. Clear indications that the policymakers will have to act again to boost the chinese economy. That does not send a positive signal. Major trading partners. Within the g 10 space, use a the yen and the new Zealand Dollar are the most oversold. Yes. The only one you would buy is the new Zealand Dollar. It is not a funding currency. The yen is the most oversold but there is a good reason. That is the currency you fund with. Fund longpeople positions in the Canadian Dollar. The Canadian Dollar is undervalued in our view. The new Zealand Dollar is oversold. We have in our bm it can be said for a number of other g 10 banks. Aat currency and from positioning perspective looks unjustifiably low. You have been revising up your figure. Is that for a good reason . What is the reason for that. They are now sitting the timeline for normalizing monetary policy. They are operationally ready to start normalizing rates. The revisions to the forecast were largely on the back of the move in the euro. Our view that the dollar yen would trade higher. We have seen that already materialize across when you listen to the fed, d listen to the words or more to the dots. Equallynk both are important. We saw divergence. In some sense, it is normal to comments. Ence between we are at a Crucial Point where the timing of policy normalization when is the big hike happening . You to,are looking at 2015. Are looking at q2 will the blackberry new phone be enough to win back the business . We look at the business and how far it can take the company. Big data could bring an end to happy hour with some of your favorite drinks. We will discover how your is going hightech. Welcome back. Lets take a look at your fx check. Confidences business in germany fell for a fifth consecutive month. Up a fraction. The euro has declined by 8 against the dollar. Senior fxatted to the strategist at bmp. She said the projection for the euro is 125. 118 next year. Are at the high end of fair value right now, interestingly. She said the most undervalued currency in the g 10 is the yen and new Zealand Dollar. These are the Bloomberg Top headlines this hour. The pentagon says u. S. It led whereikes in syria prompted by a Group Planning a an imminent attack on the west. Arabnvolvement in the makes this the Largest Coalition since the first goal for. Gulf war. It is not our policy to discuss future operations, but last nights strikes were only the beginning. Massive amounts of supplies are needed in liberia, syria leone, and ginny. Guinea. A leone, and there is a probe involving European Union regulators. Therech bank is claiming was bias. The have opened an official investigation. Announce their ceot device since the new took the helm. Take on thenough to likes of samsung and apple . Quite a week to unveil your new phone. After the iphone 6 had record sales. A tough order. We will get snazzy and fancy events in toronto, london, and dubai. We have had a few details sent to us. It will be a square screen. Like a passport. It will be ideal for reading, editing documents. 4. 5 inches. Smaller than the iphone 6. Keyboard,ing to be a which is a been they have gone back to. Like ay in which usual keyboard on a computer. The price, allimportant. 599 u. S. Is about 50 cheaper than the iphone. Remember this is a comedy that has outsourced production of their hardware. Foxconn makes it all. They do the manufacturing. Smartphones are clearly still important. Even though we are moving to the services, we are moving more to enterprise and soft where, we still care about our devices. Sidebar, they did do an unveiling a couple of weeks ago. This is their flagship, their main device. They have been empathizing the software and the other parts of their business. It interesting they are bringing out the new hardware. I didnt realize some of the software they make is available on android and ios. They are supplying their rivals in the hardware business. The reason is because they are both trusted. It is known that Angela Merkel likes blackberry. They are far more secure. Will this do very well . It is clearly aimed front and center at the business community. They say the excel spreadsheets High Resolution to examine xray images. You can get things done. This is about trying to rake even for the committee. The ceo came on board and is trying to turn it around. Cash positive. Exactly. Take these steps. Citigroup is already saying, employers dont tend to buy phones. You bring your own. 1. 5 million phones abroad are bought by companies. It used to be 4 million per quarter. Apple sold 10 million over the weekend. This is a committee with a tiny market share. Still, samsung dominates. Apple has but 20 to read this is less than 3 in terms of market share. Back,ately trying to get but i dont think this will make much headway. When you are in the cold, there is nothing like a keyboard with letters you can feel , if you wear gloves, you are lost on a touchscreen. The kind with sensors on your fingertips. For more on the blackberry, we will be talking to the ceo at the toronto launch event in a first interview at 4 45 london time this afternoon. France now considering to expand itss lowcost arm. The carrier had often did we are joinedd by our transport correspondent. The plot thickens. Yesterday, speaking on french radio, said we might have to withdraw this project. This is a way to get into the lowcost sector. This would not be scrapping the actual airline. It would be scrapping the expansion plan, the expansion outside of holland and france. Concession. Big his way of getting into the lowcost sector. Is takings the strike hold and the pilots are winning. What reaction to we have from the pilots . Is enough to get them back in the cockpit . They were protesting out of the national assembly. A bit of a reaction from the government. They consider this the big embarrassment. It is time when the economy is not doing well. The Prime Minister were saying, this really needs to get resolved. You have to wonder when the government will get involved. The strike is still expose expected to end on friday. It may extend early on that. Beyond the bat. Who is benefiting . Which rival airlines is to mark you have easyjet. If you have inconsistency on the part of air france or business passengers that cannot get their flights, they will go to easyjet. All of a sudden, they are going to try it and think it works. Lets use them again. Thank you. Our transports reporter. What are the hottest yields one of the hottest fields in high tech is big data. Trying to make sense of everything from shopping to dating. It has never been used before for beer. We have more. There is an art to pulling the perfect pint. Now theres a science to go with it. Thede the walkin cooler, quality and quantity are being measured by these meters. The information is transferred to a box like this. By the bar analyzed owner and a brewer. Using the system has helped to cut waste and boost profits. It tells us exactly what to do. Offer the second one at halfprice. Up 50 , more profit. Sometimes even 80 more profit. The Realtime Data comes courtesy of an israeli startup. The breweries know how many cakes were shipped kegs were shipped. We tell them how they were consumed. What hours, what days. What regions. By providing them with this data. They can leverage it to a better marketing and sales method. It can also throw up some unexpected insights. One of the more surprising facts we found out is some of the beers consumed here is consumed when the bar is closed. That is probably be owner enjoying some beer. Certain times of the week and at night. Consumed earlier than strong ales. Be more targeted with their promotions. On the downside, they may also end up killing happy hour. Killing off happy hour. What a thought. A fascinating report. We call that big data. You could call it revenue management. If heirlooms airlines have been doing it for years. A different price because of the time of the day or destination