London. Stocks falling across the globe on speculation of early interest rises by the bank of england and the federal reserve. The weakness in the equity market is continuing to move across the globe in its a feature of whats happening in asia. 1. 4 trillion white off the value of Global Shares in the msci all world index looks to be on set for a 3. 1 percent decline, the biggest drop since january. There is a smorgasbord of reasons behind this, speculation on when Interest Rates might go up in the u. K. In the u. S. Clearly one of the fact hers. Other things in the mix, peers of the stress of the chinese economy and fears of russia drawing up plans to seize assets after sanctions continued to be imposed by western countries on russia. Plenty going on in markets. Jumping 18 ,dex 16 above the average of the year. Volatility seems to be once again a feature of these markets. Will have more information on where the markets are, where we expect to open in europe as because to the program. Lets get to one of our top corporate stories. Air france continues its talks on a strike that began they sat down yesterday afternoon. Nothing has come out of that meeting. We had a statement from the sky team pilots association, the association that represents the pilots within the sky team alliance, and air france is a member. They have come out in favor of the pilots. Today, the strike continues. There has been no stepping back by the pilots on that front. Thehey are scrapping business of what are they holding out hope for . They are trying to hold out hope for this. They want to grow in holland and france. The growth in france is limited. What they want to do is transfer the shorthaul that france currently has into that union. Terms and growing transavia france wont be as good. The ryder cup starts today. Nearest airport . Edinburgh and then dundee as well. Ba. Ican flew in on the other way to get out there is by private jet. I just did a story today about people who are pooling to get a discount flight. 1800 pounds to get up there and back. A Company Called victor we spoke to them i think. A little bit of golf chat on board, im sure. Kari, thanks. Lets get back to the latest market moves. Inflation slowing more than expected highlighting the challenges facing the bank of japan. Inglis has the details. Give us an update on the numbers in japan, david. Good morning. We are at 3. 1 and thats the headline figure for national inflation. Youre stripped out the effect which is fairly volatile. Some would say academic difference and some would put undershooting the forecast from economists. The key take away from this is if we did see a deceleration, it was 3. 3 and in august it is 3. 1 . Because ofgely Cheaper Energy prices. Japan imports a lot of its energy needs. We did see a little bit of a downtick in oil prices between july and august. That might also be filtering into these Inflation Numbers in japan. We spoke with the japanese economists from hsbc and she also brought up the other issue of the sales tax. If you strip out the effect which happened in april. Ok, i do believe we will have that a bit later. Basically we are at about 1. 1 . Toare above but the goal is percent. Glass half full, glass half. Lets take a look at the markets because this is one reason why theres not a lot of risk taking today. As you may well know, it dropped about two months. Were basically looking at a selloff across the region down the most in seven weeks taking us down to levels last spring. Very quickly here, in japan you have 70 80 trading today. Lets hope next week is better. Back to you. David, thank you very much, reporting from hong kong. Lets talk sports. Its a win for nike. They beat the latest numbers helped by the world cup and it looks like the winning streak could continue. Here with more is Caroline Hyde. Good morning. Everything seems to be doing well at nike. The number one Sporting Goods maker and it always surprises me they were only founded in 1975. Sales are on track for 30 billion this year in this is the fiscal First Quarter. 5 . Fit up almost 2 where is it performing . Western europe up and we saw a emerging markets doing really well. China has been a thorn in their side as of late. Up 20 , heres an interesting one in ecommerce doing particularly well. A big focus for them it seems. Up 70 . T, itse training circui be the but it seems to world cup that has really dominated front and center. The risk everything campaign was on and they got a brilliant amount of stats. They had 10 out of 32 teams, the most decked out in nike outfits. They had defining winning goal wearing nike boots. Bystiano ronaldo sponsored nike. This was the mostwatched watched sporting event in history. The amount of viewers they had overall the something phenomenal for football. Do not start declaring certain footballers are the best as we will get hate mail. When youre trying to tap into those who play and view, nike made its presence pretty felt. Doing quite well in golf as well. We had a big focus on golf. The ryder cup is teeing off and we have a guest talking about that later. It fits and slightly to your nike story. Sponsored the most viewed and most engaged player, tiger woods, the most amount of likes on facebook. Well. Re doing the Company Admits that times are pretty tough for golf. The challenges are there. We are seeing fewer people playing golf, not watching it as much. The money is not falling in advertising. Its very different from adidas having to restructure its whole unit. We are seeing an increase they say. The pro combo two irons im never without it. I take it around with me. Its doing really well flying off the shelves. They also sponsor michelle wie. Investors liked it with as 17 rising as much yesterday late trading in new york. Join in on the conversation anything you like or dont like, get in touch with us on twitter. Im annaedwardsnews. Global stock setting for the biggest monthly loss since january. Time for todays company news. Russias government is pushing Global Internet services to store personal data locally. It will take effect january 2015 and the new rules mean that providers such as google, facebook, and the sub will have to rent service from russian providers. Apple has released an ios software up it that include improvements and bug fixes for the flaws in the ios 8 of date withdrawn wednesday. They also defended themselves against complaints that the phone could then the. Broad media is in talks about bringing games previously only available on consoles to smartphones and tablets. It would allow them to bring eight global audience to the smart phone users. Global stocks look set for their worst performance since january with the msci global index on 3 se on course for a drop. Nomura joins us now. 1. 4 trillion white. So far. Msci looks set to lose 3 . Is ailing the market . Is it a fundamental Global Economy concern . What weve seen in terms of data out of china, it seems that china is slowing and then aga in. They historically came in with more easing measures. We see the economy slowing and some impact from the real estate area. Takingaw some banks action to downgrade and Goldman Sachs did that earlier this week. Is that the trajectory . The downward pressure to come on those projections and is that ok in the short term if it will deliver mediumterm benefits . Theres a strong chase case for them to have growth and as a firm we think it will be much lower and the government will have to announce lower growth objectives for next year. How that is creating some uncertainty in the market, our economy depends on growth. Lets talk about japan as well sticking with the asian economy. We saw the Inflation Numbers coming in a little below estimates. If you strip out the tax effects, they have a target of 2 in mind. Where does this leave us around inflation because of the tax changes . Bit complicated. The tax increase has a negative impact on the economy, falls in consumer demand, business investment. Now do we see a rebound from here . The highfrequency data suggesting that businesses arent back into investing. We have very good core manufacturing orders earlier this month. This shows there is some sinus pick up their but is still a big concern. We knew inflation was to moderate going into the fall. Then the question is how much a push of inflation and depreciation will have. We could see some more upward pressure going into the end of the year. And other consumer tax increase then . That is the plan. Another increase . Is that mostmeans likely, you will have to see the bank of japan coming in and providing more easing to the market to try to compensate for the negatives. Is that something you expect . Will it be next month, january . The bank of japan is not in a hurry at this point to provide more easing. We expect april next year but if we see more signs that the economy is weaker than expected or inflation continues to be declining or not increasing, then japan will take the lead and start to ease earlier. Nomura,ng with us from charles starnaud. On the get his thoughts european economies as well. It is 6 18 a. M. In london and you are watching countdown. We are back with charles starnaud, senior economist and fx strategist from nomura. We will get another reading on u. S. Gdp later. It will depend on whether you look at the dots coming from the individual fomc members of the fed, whether you listen to the words that janet yellen said. With your take on the strength of the economy at the moment whatts your take . We are getting the third testament of the Second Quarter gdp. We expect them to be at 5 which would be a positive upside revision compared to 4. 2 or sent in the second release. 4. 2 . They rebounded after the very weak number we got in the First Quarter and q3 looks to be would be but that very good backtoback growth in the u. S. I saw jobless claims on yesterday continuing to point to strengthen the underlying market. Do we think the august nonfarm payroll number that was so week was just a oneoff . Do we still see underlying strength in u. S. Labor . Claimsial jobless numbers are very positive. They are back to numbers we use get before the financial crisis which means there are not that many layoffs now in the market. On the flip side, we had a week nonfarm payroll but it followed a stretch of very strong numbers. Its not something i would be concerned about. There will be a lot of attention on the number next week. It will be interesting to see if it comes in again around 200,000 or maybe higher. How confident are the u. S. Consumer is feeling . We do seem to be back to 2007 levels on some of these. If i remember correctly somewhere in there, that would put more money in the pockets of consumers and it would help them to feel more confident than to continue spending. Back to europegs and talking about the eurozone, do you think some of the weaker does that embolden some of the more dovish voices at the European Central bank . Were seeing the european economy is kind of moving and growth is probably flat over the Second Quarter and a third quarter. More and moreally risk building up in the european economy. Main risks is probably deflation. We are seeing Inflation Expectations continue to decline and be extremely weak. Draghi is also showing a lot more concern about it. Of the keyone concerns for him, unemployment. Unemployment in europe is extremely high in most countries. Its not just an economic issue. At some point it will be a more social issue which could even be the problematic for eurozone as a whole to be able to keep it together politically. It will be harder if there are more unemployed. Do you get excited about things such as m1 money supply data . Of a turnaround for the euro zone economy, the money supply data improving lending data . One bit of data does not make a trend, i perhaps. Issues is one of the where the ecb is providing a lot rates quiddity, interest are extremely low, a lot of monetary accommodation in the system. Loans to businesses and consumers remain extremely weak. Declining on a yearoveryear basis. Any sign its turning around will be seen as a positive that some of the excess liquidity is getting into the real economy. Who do you think will go first, the bank of england or the ecb . Carney has been relatively straightforward that he thinks spring is the timing. Then its more question of if it is early spring, late winter or more late spring . A group decision. Is it easy or difficult to read . Its more about who will be the marginal dissenters. They really seem to be wanting some rate hikes. Data probably see better and maybe Wage Inflation coming in. That will sway some of the, i will call it, the marginal voters for the rate hike. Our expectation is we should have the first rate hike in february. Charles, thank you for joining us this friday morning. Charles starnaud from nomura. Newly discovered computer flaw threatening governments and companies alike. Stay with us for more on the shellshocked vulnerability. Also coming up, we are turning the studio into a golf course. The ryder cup kicks off today in scotland. We look at the sports waning popularity and what it means for business. Welcome back. Im anna edwards. The dollarging up yen for you. Weve had inflation data, cpi numbers from the japanese economy, and excluding fresh food 3. 1 below where they expected that to come in. If you strip out the increases in taxation we saw them it becomes 1. 1 of interest is that is one of the targets that shins abe has tohinzo bring that into the economy. Is reacting to news on the pension fund. There are signs of progress which suggest that at least that reform strategy is gaining ground. He reforms in particular would mean moving closer to boosting overseas investments by the Japanese Investment fund. Against 14 of 16 major peers so we are seeing some weakness decreasing toward a sixyear low against the u. S. Dollar. Lets move on. These are the Bloomberg Top headlines. British airstrikes against the islamist state may start within days if the house of commons approves military action. Prime minister David Cameron is expected to tell that it poses a direct threat to the united kingdom. Meanwhile, they are battling to halt in advance by an Islamic State. Others are heading to join the fight while some are fleeing to turkey. Theyre targeting key Oil Refineries in syria operated by the islamicist state. The ukrainian president Petro Poroshenko says the worse of the war with the separatists are over. Ukraine is now focusing on the election in preparing a bid for eu membership. Poroshenko spoke after clashes near donetsk airport. The internet is looking a little bit shaky, perhaps, this morning. This is a warning from the u. S. Department of homeland security. Hans nichols joins us now from berlin. Just how shaky is this. This is a response to the shellshocked bug. Who is the most vulnerable . Governments, private individuals. It affects the nextbased systems including mac os linuxbased systems. Privateesearchers and groups giving warnings. This may allow remote attackers to execute arbitrary code on affected systems. I really have no idea what that but potentially we are vulnerable. One ride at Security Group took a look at this and they thought some rethousand systems might be vulnerable with the potential having another 50 times that amount. The is a foundation of internet, the undercarriage. That is where the softness is because all of these upgrades have been built on top of that but it is still vulnerable. You can download something, a patch. The challenge for i. T. And system administrators as they need to figure out which are vulnerable and then they can download it. Is a very crucial time. You are vulnerable when you are downloading stuff and you could be in a dicey situation. Just delete your snapchat account. Youll be fine. Worried perhaps if you are currently connected . We will discuss further later. Hans nichols reporting from berlin. U. S. Yder cup hits the against europe beginning today. Europes team has won five of the six previous competitions. Will it be able to keep up the winning streak . Ear to tell us more about the tournament, Caroline Hyde. Tell us more. We have seen europe doing pretty well in this tournament as of late. If you like stats it looks like they are pretty well ahead. Theyve won the last two in a row. Europe has more best of the best. They have the four of the top six ranked and they have won more tournaments outside of the ryder cup. 14 tournament have been won by european players. Three of the majors have been won by that squad. The u. S. Squad, only eight have been one and only one major. What weve got to remind ourselves is that golf is a sport is in a freefall. Thats how many people are fearing it. Since tiger woods came to the and itout a decade ago became a sexy sport. We have seen participation fall. We are seeing tv ratings go down as well. This has hit businesses. If you look at dicks sportinggoods they had to fire golf pros. Adidas is restructuring. Tailor made. They have to do something to again, thisetite idea of rivalry between europe and the u. S. Is not really getting us to the tv screens. . What about social media how much hype is there . Roostope is ruling the when it comes to social media and who has the most presence. We have more than one million likes on facebook. We have rory mcilroy mostly to thank for all of that. He has more than half of those facebook likes. Times in three more terms of likes. Twitter, europe has 2. 8 million more followers. Where the u. S. Is winning is instagram. Alsohave fowler who has into his hair at the moment. He does not really bother with facebook though. They have one major problem, that tiger woods is not playing. If he was, they would be beating europe. Hes the most engaging with 3 million likes on facebook, one million twitter followers. Not all conversations are positive about tiger woods. Demisean talk about the of golf but it still has its fans. To get into the president ial white house, you become a bit of a golf fanatic. Maybe it will help you get there. Discussions with potential sponsors that might be giving you money. He does play with certain members of his white house team. Nine of the 14 holidays at Marthas Vineyard he played golf. 38