Bends while apple is forced to pull the latest ios update after several lost service. A warm welcome to countdown. Im anna edwards. This 6 00 in london thursday morning. The rise of Islamic State dominated the agenda at the United Nations meeting in new york. Barack obama called for support in the fight against extremism in iraq and syria. Terror. D condones this no grievance justifies these actions. There is no reasoning, no negation with this no negotiation with this brand of evil. Only language is known violence. His force is one country said to join in that coalition is the united kingdom. David cameron called the General Assembly and said his country will begin a new phase of involvement in iraq. In london, he will chair a Cabinet Meeting ahead of the parliamentary vote on taking part in airstrikes. Coming up on the program, stay with countdown. We bring you interviews that you do not want to miss. Be will be speaking to the google chairman eric schmidt about alibaba. The ecommerce site begins its first week as a public company. They have done a fantastic job of anticipating needs of the emerging middle class of china. China is a big place. We will hear what eric schmidt had to say about samsungs come petition with apple. We will also get the view on the continuing industrial action into air france. Until the french sort out i think it will be slow to open basis. We will bring you more from that interview and well hear from the italian Prime Minister to get his strategy for reviving europes economy. Blocked. Now is we need a vision for the next europe with an investment. top stories. Air france is offered to drop a plan to expand its lowcost unit in exchange for an end to a 10 day pilot strike. Lets get it up date. Where do we stand on this . Companies did make an offer. They said they will drop is to expand. Theyll continue in both the netherlands and france. The second thing they asked the pilots for was for everyone to back expansion within france. They call that a profrance project. They asked the pilots to get back to work. A very conciliatory statement from them last night. To hear whatting the pilots had to say about this. They have voted to go out on strike until the end of the month. Is that right . A continued strike. It came out late last night. It was 9 30 p. M. Our time. 10 30 p. M. In france. The tone is backing down. Theoes seem like essentially got what they wanted, which is to stop the expansion. You mention how they are selling the french part of the dismissed. Frenche emphasizing jobs. Absolutely. We saw the french government getting involved. There was a bit of confusion about something that implied that yes. They said that is premature. Today what are they doing . Scrapping the project. You would deftly think one would think there are a few calls or just being made behind closed doors. For the you very much latest on that air france story. Lets move on. From record sales to iphone stumbles, the rollout of the new product is not going as smoothly as the company planned. Apple pulled the Software Update after customers complained it was causing calls to drop. The company fees complains that the iphone 6 bends out of shape you tim higgins is following this story. Has apple customers reacted to these issues . A week ago they were lining up to buy the phone. Constante seeing complaints on social media sites like twitter. My email inbox has been full with Horror Stories from apple customers describing what is happening when they download the new mobile upgrade system to their iphones. It has been a little buzz here. Bewhat do we know about the nding . That sound like a difficult thing to fix. It is not something you could send a Software Update. Today fixesemen these phones. Who has00 or so folks these stones around the u. S. He has seen these things the previous apple phones. And 5c. E iphone 5s back. An bend it it does not always work right. Their advice is not to sit on your phone or break it. This is not a problem for most people. This is an extreme situation. The big problem is the publicity. This occupied a lot of airtime on television across the u. S. Thet of social media as company is launching these phones. Phones represent about half of the Revenue Generating to apple in the last fiscal year. Thank you. They had to apologize for their mapping software. Tim higgins from bloomberg news, thank you for joining us. A month before a common the ship goes to beijing, there is a question about the longstanding centralbank governor. We have more. What are you hearing . There have been rumors before about whether xhou will leave his post or not zhou will leave his post or not. There have been a lot of rumors, for 11 years i made at. I might add. It never materialized. In december, theyll embarking on a bunch of new financial reforms. He was approaching the normal retirement age of 65, then he was asked to stay on. He is now 66. He has been a strong advocate of freeing up and trolls on Interest Rates and reducing intervention in the exchange rates. With the slowing economy, authorities might be grappling with on how best to give market a more decisive role in the economy. Deep in mind the Central Banks does not work independently of the government. The answer to the government. There has been talk of friction between the central bank and the government led by the premier who is in charge of the economy and policy related to that. He is the longestserving governor, 11 years. He is 66. He will have to step down at some point. Is that big party powwow in beijing. There is increased Media Chatter again on social media and the wall street journal has a story basically saying the same thing. If he is going to be replaced, who is most likely to do the job . It is probably a short list. It will not be an open process that we have a confirmation of janet yellen in the u. S. This will be done behind closed doors. It will be a short list, those who are qualified. We asked economist. Six of them said it would most likely be the former security it was then china most likely successor. Hesx years wellversed in chinese financial circle. He was a security regulator. Hes a former Foreign Exchange. Hes a former Deputy Governor of the people inc. Of china. He is wellqualified. Five out of 13 at another candidate who is a current Deputy Governor. That is probably the short list right there. Those two people. Thank you. Stephen engle, thank you for joining us. Lets head over to bloombergs hans nichols. Good morning. This is one of my other attempts to make you jealous. Im here in front of the mall of berlin. It is opening today and will be the largest Shopping Mall in germany. What we have here is a conflict. We have the mall where people and economists want germans to spend. Right across the street we have the finance ministry. It is that clash that may define the future of europe and economic growth. I get to do more Christmas Shopping for you and mark. So generous. Thank you, hans nichols. He covers European Economic stories and getting ahead on his Christmas Shopping. Thank you. Still to come, no kiwi in europe are now. We look at the challenges facing worldwide investments. Time for todays company news. Selling itswill be galaxy phone in china. The phone will be sold. This gives them a head start on that apple iphone 6 that is still waiting for the governors approval. An update for the iphone operating system after the new software caused calls to drop. Some customers reported the fingerprint touch id feature was s8so faulty after the io update. And googles air schmidt has been talking about apple. They say the company rivalry benefits mobile consumers. This brutalay competition between apple and google over android and ios has enormous benefits for consumers worldwide. , that look at innovation competition which i think is the defining side benefits billions of people. Lets talk about the european economy. Ministeran prime underlines the need for growth over austerity in europe and told us that. Creation was key to improving his countrys economy. Way. Mpromise is not the in this case, we must invest in of markets inergy of markets inity italy. In the last six years, the number of unemployed has doubled. 12 points of 6 of unemployment. Numbers. Still, this is not the time of compromise. This is a time of correction. That was italian Prime Minister. Joining us is my guest. Ood morning to you lets talk about this debate of growth and austerity and the reform agenda we are seeing. Theyre saying that economy it kind will stick to their reform agenda. Do you believe in the reform agenda . Absolutely. A structural reform across europe is very crucial. We know that some of the content in the euro area has managed reform. Spain has introduced a bigger bond the labor market. Beenday and friends have italy and france have been lagging. They need to do that. The are fiscal measures that should and can help the country get through structural reform. You mentioned spain many point to it as a success story. Extreme levels of unemployment we see, do we have to look through that and hope that those levels come down after the full effects of the reforms are felt in those markets . There had levels of unemployment as a key concern. Sure. In spain, it is still quite big. We need to wait for the structural reform to take effect. It doesnt happen overnight. It takes time. By the way, it might have a negative effect in the short term. In the long term, it is food. It is it is good. It is about ensuring growth. We had a times talking about reform. We hear it highend talking about reform. We have heard italians talk about the reform. Yes. There have been recent changes in government. That has been a factor. The idea of fiscal stability is gaining the men 10 and perhaps we dewdney gaining momentum. To gain, we need to see monetary reform. And if we see more reform, and to think the germans might be more willing to loosen the Purse Strings a little bit to sanction a the to bit more stimulus of some kind . Absolutely. It is about the fiscal measures that is helping the growth along the way. Who has room for fiscal measures . We do need them to take steps. What do you expect from the monetary side of things. Growth story remains very fragile in the eurozone. Things be weak enough for fullblown qe . Im actually getting quite positive on the cyclical story. That is very important. Real economy. The i think we will see better numbers. I do not think at this point in time that they could do more qe. Theres a lot of political tensions and issues. Yes. Thank you. Little bit what is happening in the u. S. And in the emerging markets. Welcome back to countdown. Im anna edwards. With a global economist at fidelity worldwide investments. Lets talk about the United States. We heard from a number of dead speak fed speak. They warned not to raise rates too soon. Many thought that rates were raised too soon and punctured a recovery. How much of a rate expectation to you have for that United States . Lets talk about what is happening with the data. The cycle has been improving. We expect the u. S. Economy to continue recovering on the back of the recovering housing market. Inflatione time, pressures are most nonexistent. The suggest theres still some slack in the labor market. We need to wait in the to bit longer for that healing process to take lace. Could well be the second half of next year. How do you square that we do not have all word momentum coming through in wages, but we have new home sales at their strongest . Which of the measures seems out of step with the other . I think there some longer in terms of wage growth. Negative. L somewhat course, the latest housing data is very encouraging. Lets talk about emerging markets a little bit. He affects of the ukraine conflict is clear to see in many the sentiment data and perhaps in the growth data. Is this something that is waiting on Global Growth for you . I think it has definitely been weighing on growth on the continent numbers. We seem to be at relative calm. I think the markets have a just i thinkion should unless we see a major escalation have i dor we not inc. That this will continue to weigh on noble road. Morning. O see you this still to come, confronting Islamic State. We look at how turmoil is hurting economic stability should stay with countdown. Welcome back to countdown. Im anna edwards. This is where the euro dollar is currently trading. May seems like a very long time ago, wasnt it . We are at 1. 2764. The ecb plus to expand its balance sheet. He did not have any luck in the ltro. There are some way to go to get to that one trillion. Mario draghi is telling everyone to treat those operations as a whole and wait for those december numbers. Wants toaken help with the inflation numbers. Inflation running at 0. 4 in that eurozone against the target the ecb had in mind of 2 . That is where we are on the euro dollar. 14 month low. These are the Bloomberg Top headlines this hour. Islamic state dominated that u. N. General Assembly Meeting in new york. Barack obama called for further International Support in the fight against extremism in iraq and syria. He said theres no room for negotiation with Islamic State and about to destroy the militant group. While obama was speaking in new york, it u. S. Strikes were launched and the uae. Oil refineries in syria were had. Discussed allande french man beheaded by the algerian group. The group warned it would kill the hostage in france did not end there strikes in iraq. Lets stay in the middle east and the turmoil. Your to top of the future of Oil Investments in the area is that chairman of a corporation and independent energy experts. Thank you for coming in. Lets talk about this latest operation that we are seeing by the u. S. And its partners in the middle east. We do not see a great you love affect on asset prices. Not a great deal of effect on oil. Are you surprised . I am surprised. Many have been surprised. It was down in france slightly. In many ways, the markets are well supplied with oil. The stocks are at 58. Bystanders. Much the markets are reasonably week. The Economic Outlook is not very strong. That being said, were a lot of the oil comes from, this is where majority of oil reserves are. There should be a little bit more worrying from a gut feeling point of view. What about the geopolitics behind all of this . You take any comfort from the fact we are seeing a very interesting coming together at the moment . Guitar and the saudis are on the same side, for qatar and the saudis are on the same side, for example. That is very good. Saudis never the agree it on things and they are getting along on this. There are refugees in turkey. Many have crossed over the border. Yes, there is this we need to be careful who wants what from whom in this alliance. The u. S. Seems to be a little bit more concerned with a new strategy of the al qaeda part in syria. The europeans are much more worried about isis. We have hundreds of europeans. Some europeans are worried about other part of north africa. The italian Prime Minister talks about how the priority is libya. Juggle threey wide here touting geography he re. There talking about should we the first marga pershmerga kurds . Symmetric war. Theres always a little bit of an advantage. We seem to be learning about new parts of the extremist movements. Has been a part of the vocabulary. Their new forces to come to terms with. Fragmented. Ibly are you sure you know what youre doing . There are some sympathizers. It is not even the conglomerate. Loose association of all sorts of terrorist was slightly different ideology. We are president obama talking about the United Nations. Many have seen just a that he has toughened his stance. What wanted the change from him in this area . Is it the regime change in iraq or the moods that we have seen . It is both. Regime forn iraq it hasen he wanted that and. Of thosebeheading american journalists, the public sentiment in the u. S. Has really shifted in or miss late. They give very much for joining us. Lets thank you very much for joining us. Lets move on to h m reports earning in around half an hours time. We are joined by charles allen. We have some strong sales figures. What to expect to see the profits numbers . Good morning. T is a great unknown with h m strong skills dont always translate into strong profits. There are always a couple of things. The second is this long running story with h m is there are investments and new brands and online and will the cost growth continue to be the head of the sales growth . What are the uncertainties in the h m forecast . Mentioned what we know about sales are ready. Why are we so uncertain about the profit numbers . What we have got is online investments. A business in sweden for ages and ages. It is moving online rapidly in many laces. It has been about a year since they were in the u. S. This costs money. The second thing is they have got a whole load of new brands. Costed up to be a major brand shared this how significant are these new changes compared to the main line . They have never broken it out. They must be less than 10 . On the other hand, they are being built to be bigger segments. That is why they have got the costs. They made the acquisitions which are being built up for Water International expansion as well. Aggressive,te arent they . Considering how long it has been around for. 21 the last time we heard from them. When you consider how big they are, it is the second Largest Global retailer. It is. He had to member the air coming up a slightly weaker quarter. You have to remember theyre coming off of a slightly weaker quarter. It implies they have got back into tune with the customers. Last week was that they were showing that they were hit by some of the week emerging currencies compared to the euro. How does that relate to these retailers . H m has gotten