Transcripts For BLOOMBERG Countdown 20140929 : vimarsana.com

The surprise the parter of ill gross. Chancellor George Osborne is expected to reveal more pension reforms. We are live at the Party Conference. You are very welcome. I am manus cranny. Lets talk switzerland. Lets talk ubs. A couple of different things. They are changing their share structure. Creating that vehicle gives them two things. It means in times of crisis it would be better to wrap them up. Too big to fail. Important index is how much money, transforming them. They are streaking ahead. Into jumps two months they have done the job many thought they were due in three months. They are going to get lower Capital Requirements as a result. This is where the real lines come in. A are talking about foreign exchange. They are talking about foreign exchange. Are underestimating. Involvent would material penalties. Headlines onaking the foreign exchange. Seek to start settlement talks in the near future. Lets see how the cause comes through. Democracy protesters remain on. He streets much more peaceful at the moment. The transport system has been affected. Roads closed. Hundreds of bus routes have been suspended. You will notice them firing pepper spray into the crowds. David england is looking to muster his powers and get into work. Talk us through the market impact. It was a bit of an effort. I was looking around. Some of the people would usually take a bus in. It was 30 or ferment or 40 minutes into the city center. Have stores shut because of these protests. Understand that negotiations are ongoing for talking to these protesters to leave. Unsurprising, given how the markets are selling off. We are down about two and a quarter percent, which would be the worst day in seven months. Nobody really expected this to scale up the way it did over the weekend. Of the vix index spiking. You stripped is the way. The local economy hasnt been performing that well. Retail sales are coming in about two hours from now. We are expecting that to drop. We simply import that from the u. S. Not a very good day for investors in hong kong. Thank you very much. Not to mention sales we saw. It has been a pretty tumultuous sign for investors. Lets bring you a bit of. Reaking news i have had a lot of foods this revenue is in line with estimates. Foreign exchange, negative impact. I am going to round up. 1. 2 billion pounds. Ongoing for every british company. You have been helping the spanish economy. Lets leave it there, shall we . Hey no attention to russia. Our attention to a man who is talking about exxon. They made the biggest oil find in the year. Perhaps more interestingly, we find it is made in the arctic. The exclusive on it. You are looking at the northernmost well of the world on a good day. Is what it looks like when we flew in. They just struck oil in the arctic and may have found more oil than in all of the gulf of mexico. It could be a while before they find much more together. The United States has banned exxon from working with russia and the arctic. A friend of the russian talks. Nt rarely you plan on drilling in the arctic as soon as next year . Of course. We will continue drilling here next year and every year after that. Our journey included a four , an hourht from moscow a, andelicopter out to se the final helicopter. Getting all the stuff there is one reason it top 700 million. The 94 model works perfectly. Stuff like that happens. I think it is inadequate for the comparison. Wontt be here you be here long. They have until the 10th of october to get out. The whole rig will vanish. Winter and arctic ice are coming. Just to give you an idea of how difficult it is to work here, it took two days to get permission minutes onlast two the helicopter. We have been here about an hour. We have just told we have to go because the weather is getting worse again. The stakes are high. They have a joint venture to explore millions of acres of arctic waters. Exxons biggest prospect outside of the United States are right in russia. Not everyone was thrilled about drilling. He is on his way back from his first well in russias arctic, armed with new ammunition to win the battle over sanctions. Exxon is welcome back anytime, they say, but insist they are thenllowed to return, russia will take the spoils on their own. More on the story. Lets bring in Ryan Chilcote. Rather windy to me. It was very windy. I am still in the arctic. I didnt ring a suit. It was pretty extraordinary. The magnitude of what they think they found. They believe they found as much just0 Million Barrels in one of the reservoirs they are exploring. 30y say there are at least more reservoirs near it and this oil could be taken out of the cost ofven with the working there and still make money. That. O discussed have a listen. Production is going to start here in seven years. That is the midrange of the forecast. If the market demands it faster than that, we can speed it up. Can you tell me what price of oil we will need for a return on our investment . I think it will be enough to provide our company with its standard return. The mature fields in use now around the world are declining. This oil is high quality. The market should definitely give us the kind of price that justifies our invest in. Think in five to seven years we will be talking about 140 to 150 dollars a barrel. Time will tell. Whered do you go from here . Is barred from drilling in the art to. Exxon has to leave here, so what happens next . We will do it on our own, and we will attract the necessary partners who dont have any buttations on cooperation, we arent stopping our work with exxon. The project operator is our joint venture with exxon. We are not planning on changing ownership structure. You plan to continue drilling in the arctic as soon as next year . Of course. We will continue drilling here next year and every year after that. I think the message is, they can do this on their own, though they would like the scale you get when you have International Investments with western companies involved. They think that is what is going to happen, that exxon will be that, because it is one thing for the Obama Administration to tell exxon they have to stop drilling in the arctic sea before they found something, but now it might be more difficult for the United States to ban exxon and other Oil Companies from working in the area. It is tax revenue. It is pensions invested in the company. They think it is a dynamic situation and their best argument yet since sanctions began against them. Great work. A little later we will bring you another exclusive into the foreign minister Thomas Sergei about economic sanctions on moscow. All things russia but now all things u. K. We are back in birmingham. We will be joined by the director general of the British Chamber of commerce. We are going to get his take on the economic and business platforms. Stay tuned. Its hard on the first day after a holiday. Take it out and talk u. K. , because the conservative Party Conference continues in birmingham today. Anna edwards is on location today. You have a special guest for us right now. The last conservative Party Conference ahead of the election in may of next year. We are now joined by the director general. Thank you for joining us. Launching your business manifesto. What are you calling for . One thing was to build more confidence. Why more confidence . We designed it the way a business would design its own plan with targets on where to there hasnt been general Business Confidence. People are saying, it is tough, but i am ok. That has switched. I think there is general Business Confidence. Stepw need to go the next to build the confidence even further. The political theme seems to be shifting. What do your members make of the debates on europe at the moment . There is no question our membership wants to remain parts of the market. It is not the worst of options. Are saying is we need some safeguards. Those are around the expansion. Does it work properly . A Service Sector economy. We also want proper safeguards around the eurozone decisionmaking. Dont want them left in the cold. We are going to be hearing from George Osborne, the chancellor, today. Expecting it will show you at the end . Very was actually responsive to this. He dealt with infrastructure. He said he would actually build. Oort support very important to hit the Prime Ministers targets and doubling exports by 2020. He said he would have a British Investment bank. I want to see what osborne has got to say about this this finance. He addresses the issue of skills. Very important if we are going to deal with youth unemployment to deal with soft skills around employability. You say infrastructure. They have their own designs about a more international airport. What is your thinking on where expansion needs to be . Cap wake is advertising itself. On. Debate rages we ought to support the commission. It identified specific outcomes. Whatever they decide we should what we need is a national airport. It may be heathrow and gatwick butlike apples and pears, we still see people trying to renegotiate. What about finance . I am going to be speaking to the British Banking Association later today. What can they do to increase funding to other businesses, or is it not up to mainstream banks . Have we got other players these days . We are sponsoring a business comparison website where businesses can look up what people say about the bank. I would encourage people to use the website to find the best possible banking solutions. No question they should be looking into lending from banks. They have launched an investigation into the sector anyway. Sure they need to fill that gap. There is nearly a century of lending to fastgrowing relatively small businesses. We also need a rebalancing towards Equity Investments of 25 of equityest with the same tax breaks you would get if you take a loan. Inc. You for joining us. Of theector general British Chamber of commerce. The german chancellor will be speaking later this morning. The tory party tries to appeal to traditional voters ahead of. He election in may a great conversation. To your a little little later in the program. Ubsre going to talk to after the break. They have done in two months what the market thought it would do in almost a quarter. It is all about currency. Investigations ongoing as well. We are going to take you through some of the breaking news headlines. That is going to be after the break. Welcome back. We are going to talk much more about air france. The strike is over. What is the damage . Zealand dollar lunches. We discussed what is driving down the new Zealand Dollar and much more after the break. Welcome back. Foreign Exchange Rate is looking. Lets take a look. The central bank confirmed they were in the market over the summer. We broke 70. Havent done that since august 2013. Some talk about the price of iron ore being under pressure. Some stop losses went off. Dollar is on the best year since 2000 and eight. The traders are long as long can be. That is the state of play on the lets turn our attention to a man who can tell us a little more about the market. He is live from hsbc. Dollar is on a turn. The kiwis are on the market. It is all moving. Is the biggest mover . Is it sterling . Is it qe . What do we do . You go with the trend on the dollar. I think the euro is a good candidate. I think mario draghi is going to keep wanting to talk the euro. Every bank is talking their currency. I think draghi has got to remain in that club. Impetus. E new what about that having a slight effect on the hong kong dollar . What are you hearing in the Market Reaction to that . It doesnt seem to be a big reaction. We have noticed with geopolitical events they have retained local drivers. It doesnt feel like this is a mentality. A broader as you pointed out, the kiwi is lower, the avi is lower, but for different reasons. On those reasons, i started out by saying, the dollar is having its best year since 2000 and eight. They said, get ready. We are going to get a report that is going to knock your socks off. The dollar has the momentum. Cheap. Ading that it is the dollar is cheap. Turning point. Would you concur with that . You have just read told overnight the kiwi is expensive. Measures, they say currencies like the swedish krona, the norwegian krone, they are expensive. The flipside is the dollar must be among the most undervalued of the currencies in the world. Traders are saying, it has gone a long way. Pullback. Ie marked think you have to chase the trend and bemoan the fact you might have missed some of the moves. You are talking about the euro being the place for the week. It is meant to be the lowest we have seen through the year. The euro even lower . I think so. The german cpi perhaps will be more important. The eurozone has been a key catalyst. Downsidef we got a surprise from germany, that would be significance. At what point are we going to see the week dollar begin to lift the euro . Monthsct quite a few down the road. All of this is still relevant. The market and trading floors love a great story. Friday, ozzie gold. This man really does move markets. What is the talk . How are people reacting to this . What does david bloomsday . David bloom quiet . Not likely. Think the reaction has been rather local. Impact on the share prices. By the fedn swamped story. Raise rates . That is overwhelming everything else. What is interesting is we are seeing a lot more choppiness. People are scratching their heads in other markets. Foreign exchange it feels simplistic at the moment. It is the question of who the underperformers are. Latestnges upon what the chapter is. I dont think they really have much traction and currency. Thank you very much. That was currencies. Air france pilots have ended one of their longest strikes, which cost about 20 Million Euros to date. To reached aned agreement. Where do discussions lead right now . Were going to talk more about all of last week has been interesting. We saw them putting pressure. Of last weeknd attention turned to the pilots. They are saying, i will not act as a media rate the mediator. Then they say, maybe its time. They say, even though there has not been a resolution or any conclusions, they will stop striking. When you think about the clarity, 20 Million Euros per day. At thatline can survive level ripping through cash . That doesnt say anything about the cost in terms of lookings Going Forward and reputational costs. Whichis a point in strikes make management look bad. You do have to wonder. They said they wanted the discussions to proceed in a calm environment. It seemed that was what brought everyone together and decide to stop striking. What is being debated . What will be put on the table . It seems the sides are at loggerheads. The pilots are worried about contracts. Air france wants to push forward the unit. They said they wanted to speed andhe rollout in france, that still seems to be on the table. Passenger . Ere a theoretically things are supposed to start normalizing tomorrow. It will take a while for everything to get into order. It should start getting back to normal by tomorrow. You are brilliant. You have been covering this. Can pimco do business as usual this week . Ousted from the top of the bond fund. What is it going to take to get pimco to stay there . Time for company news. Option toing an exchange to the group. The bank also indicated profits for july and august already expect. Hat analysts and a u. S. Inquiry into whether they broke antilaundering money laws according to a person familiar. The bank is trying to resolve a contracto irans violations. Billion. Ng 1. 6 the ipo was 20 times oversubscribed and priced at the top of the range. The listing on thursday will be the biggest Public Offering in dubai in seven years. Stay, or should you go . That is the question many Financial Advisors have asked themselves. Departure. S abrupt thomas, great to have you with us. The markets are going to get what is goingto on. This could be a tough sale. Who is going to win . Who is going to win . We will only know over the course of the next month and years, but we do expect i think we are not that much different. Quite strong outflows. Ishink manage management at least 100 billion. 420 billion. G at it is drawn by two things. The direct assets around 20 or 25 of the party, and of course we think they had an indirect influence on a number of funds. How much will this benefit where it is headed . Will it stay involved . Will they be allocated to different types of assets entirely . This will bethink heading . I think it will partly benefit. I think they still have confidence in performance. A weaker 12ve months. I think they still thought in the long run bill gross is performing well. Money isod deal of flowing to others. That is partly reflected in their price. We think the number of investors are just playing bonds. A more important question is whether it is more passive. Passive seems to win right now. At elians k zs position, does this make them vulnerable . Say, we havethem had enough star performers . There are 240 other word folio managers. Of starshow the risk performers . Risk is always on peoples minds. Different point of view, i think until a certain time last year, pimco was running well with the set up they had. Sudden balance of power you have at any company. Time in a longst time they got some pressure from their shareholders. There was more pressure. To interfere by reusing the risk and by introducing a complex leadership , and while that on the surface may not sound dramatic, i think it could have changed the situation. Irrespective of what you hear has reducede, pimco produced very good returns. It was a bit weaker. Talking about people and reports that they might be extending the contract for their chief executive by another two years and is set to run until his 60th birthday. Is it important to see ofsistency at the head sllianz . Yes, there are always two ways to do this. If you are in trouble, you can change management to make a change, or you can hand over a the reason. I think we think the ceo is likely to beyond his 60 years and the end of his contract is mainly are nothis successors quite ready. I think that is the main reason. Worries, allianz may add to the fuel, but the main thing is there is no immediate successor. Were going to leave it. Great to have you. 1. 2 k is down 1. 2 higher. Excuse me. After quite a bit of selloff on friday after that news breaking. Lets check how the city of london is looking. Equities are also looking a bit murky. After the break we are joined by the market analyst for more on what will be driving the first trading day. Welcome back to countdown. We are joined by the markets analyst. Stocks have a tough run recently. What is your feeling with these markets . At the end of the year we have unenjoyment. Pardon. Unemployment. It has been a bit unenjoyable. Off. Have had a week pretty enjoyable for me. The ftse has had a couple of difficult sectors. We are seeing a slowdown in china. We are heavily weighted in the ftse. The ftse is pushing into 14 year highs. Whether we break through or not does seem to be related to not just the u. K. But further beyond in terms of how china can slow them down. Themes, buten world we have the big u. K. Stock. It. It seems to be short for being uncovered in the Construction Unit. Construction seems to be the unit. The rest of the units seem to be holding up ok. Down, so it does seem like a slight overreaction. There could be value in the stock. Cheaper to another approach in time. They have said they are going to revisit the final dividend. It is always a concern. It is more attractive throughout the day. Unit . N when they sold the it makes the whole thing looks secure. Asset tod be a nice have. Probably they are going to have an interest. I think it is a more tactical approach. The dollar is strong. Cheap. Lar is relatively are they still buying . How are they trading . How are they taking advantage of this dollar move . Where is it playing out . I guess the big one to look out for is the euro. You have got both sides of the coin. There is the said pointing to dollar strengths. Mario draghi is looking at debasing the currency. It is essentially a quantitative easing program. That has not been announced. They are leaning in that direction. We have got cpi inflation data from germany and spain. Germany for in september. That has been a big concern economically. The euro zone as a whole has not been fantastic. Germany has been holding them together. German Business Confidence has been slumping. To some of theg highs from the data. That is pointing to further weakness for the euro. I am going to have to leave you there. Welcome to on the move. We are moments away from the start of european trading. Futures pointing slightly lower. A big week of losses on the ftse last week. This is what we are focused on. Thousands of road democracy protesters take to the streets in hong kong. The big losses belong to property developers. All the gains on the hang seng have the entire race. We will talk about the news that rocked the asset world. Pimco worth to the german Parent Company . 3. 6 billion euros apparently. Off is how much was knocked. We will talk about that and more. If you are looking for the dax, pretty much dead flat. Manus cranny is back. These markets. Performance over pimco. It is fairly undisputed. We are waiting for the dax to open. The new Zealand Central Bank getting involved with the currency. For the mortgage. Talking about the price of iron ore being under a little bit of pressure. Can you tie that back to the hong kong protest and being into Disaster Recovery mode . Companies we are. Ocusing on we are waiting for that to open. What an offer. They said, we have another profit shortfall. Are they going to revisit the final dividend . We are waiting for them to open. The french pilots seem to be in a position to negotiate. Getting back to normal is going to stop the hemorrhaging of 20 Million Euros per day. The longest strike looks like it is coming to an end. What they have told the markets. They have overachieved in terms of actual numbers and deliveries. 731 million swiss francs. Often it is an incentive to swap shares. The allows them to wind up business more quickly. Capital mean reduced for the business. Ubs is up, bucking the overall trend. The dollar index just coming off its overall highs. This is the only story about when. The marketened in over the summer. You can see the overall movement in terms of the new zealand movement. They have broken that barrier. Said it isinister . 65. A bit of a difference. The biggest threeday drop since 2011. The aussie, where one goes, the other goes. That is awkward. Back to you, johnny. Thanks. New Zealand Dollar. If you didnt know, the Prime Minister of new zealand, hes to be global head of fx at a major bank. We will talk about more of that later. Have a look at. Spanish retail sales come in at 0. 4 . If you are looking at cpi, forget estimates. Estimates but that 0. 3 . Not exactly pretty, is it . Lets look at asia. The hang seng is down as we speak. The prodemocracy campaign is. Ringing the index thanks for joining us. I can see the impact in the equities market. Right now i am on the highway, which is about eight or nine lanes going into the financial district. Really anything in terms of clashes. They are very peaceful. Most importantly they are taking care of this area. That means traffic cannot get in and out. There is one of the main complexes where the government offices are. There has been an impact. There have been several businesses that have to shut for part of the day. There is at least one major jeweler. There are protesters blocking the way into the shop. It is not just hong kong. There are protests taking place in other major shopping areas and on the other side of hong kong harbor. Definitely there is not business as usual today. The government has been appealing to people. They have also said the riot police has withdrawn. They are trying to pull back. There are very intense clashes we have seen between police and protesters. And have umbrellas clingfilm to protect himself in some way from the onslaught. Thanks very much. 1. 8 . Alleng down by of the games now wiped out. The market. Me of on the Portfolio Manager joins us. Good morning. I see the moves on the hang seng. The equityke most of benchmarks are trading higher. Should we draw a line between the political noise and the slowdown in china, or are these part of the same story . They are not part of the same story. Take come at a critical point because china is trying to balance it with the reform push. Interesting to see what the response from the Chinese Government would be to the protests and if there is an additional push to lesser form or more reform and more growth or less growth. This is an interesting thing because it is coming at the moment when everyone is focusing and isis. We will talk more after the break. Stay with us. We are back in two. He is not pimcos bill gross. He has left and will be running an unconstrained bond fund at janus capital. That was the announcement that rocked the management world on friday. The markets didnt take it lightly. Shares down by 6 . Are those moves an overreaction, and what does it mean . Lets bring in hans nichols. Started to happen . . Hat does it mean was down 6 this afternoon. This morning it is up 1 . That may mean all this about rethinking management where they want to reallocate funds, it may be a bit hasty if they are going to trade up and continued trading up. It has been a remarkable weekend he as we learn how quickly left and what it means for the company. The report over the weekend that on friday they lost 10 billion and that they are preparing for 100 billion. We had a guest earlier. He was talking about a 10 to 30 outflows from pimco. End puts you at the upper at 420 billion. When you look at what it has done, it is clearly under pressure. They have underperformed their peers. They were down in 2013. Now it is up to this new team to stem outflows. I may have been busy making calls this weekend. They were busy traveling around, talking to fund managers, making the case why they need to stay with pimco. When you look at the Parent Company, pimco only accounts for 7 of the revenue. When you look at profit, pimco is a fraction. The Asset Management classes a fraction of what they do elsewhere. This is fundamentally an Insurance Company driving profits. Visit when youre visiting and Asset Management if there is a Teachers Union in oklahoma, do you go on the private plane and try to make the case . I think you do. I think you probably do, but the one question i have been manking about is how can a come out on a friday afternoon, quit, and restart later. They probably have got something on their contracts, which means when they leave they can go they cannot go someplace else. You will wonder why didnt they have a noncompeting clause . He was there from the beginning. Apparently they didnt have a noncompete clause, and they didnt think about it. The british Prime Minister . Hat you railed his plans ts there isaid, even some contingency you cannot plan for. I am notisclosure, going anywhere before i start getting emails from my manager. A big move down. The assets were already fleeing. Ill gross there was evidence when the trader leaves the company there are a lot of redemptions that people dontcause really care about Risk Management strategy, but thestly, they follow what bond managers say in the newsletter or the communication to the market. We have seen that several times in a highprofile situation like this. The institutional funds, surely they are thinking, this guy has beaten 99 of his peers over the last three and five years. This guy can handle things. Bernstein is talking about 30 of outflows. Can it really get that bad . It can. Will, but itif it certainly can judging by past events. Fundew guy is a brilliant manager, but he is a complete no one for the general public. Deal with the relationship with Institutional Investors from scratch. The big bull market run we have seen seems to go hand in hand with the rockstar status bill gross has been. I dont want to get too sentimental, but we saw a move in treasuries. Some people were moving treasuries on the back of his departure. Can you put them together . Maybe yes, maybe no. Its difficult to see which flows relate to what. I think overall the treasury market is bound for a long time of weakness. Grosss callbill before he left. Anything can be taken as a next use to sell treasury. As an excuse to sell treasury. I think the reason is more than Just One Fund manager moving to the other. Funds,at pimco loses aspect. Ll be a net zero what is your outlook . How do you see things going . I think the market will be more or less, until the end of the year. I think there will be a long time of bearishness on rates and it will be driven by the fact we are seeing some Wage Inflation in certain parts of the u. S. Int can build up momentum inflation over the medium term and will take away any excuse dovish people and basically push the fed towards a steeper path of interest rates. N the future, much steeper what does that mean for high yields . Are saying there are opportunities. If i am seeing treasury yields go higher, do i change my view on corporate pressure as well . There are opportunities in the short term. There are certainly some Companies Worth investing in. Be overallre can weakness. A lot offts higher, funds invested in fixed income will perform badly. We will see redemptions across the board. That will mean there will be redemptions in Investment Grade and high yields because of the negative return. Context of in the the liquidity situation in the market is much worse than it used to be. This redemption cannot actually meet a buyer and therefore means increase,set price and that can kickstart a mini crisis. At tesco,blems over are they sounding an alarm for you . Being, this is the situation. Tesco is a specific situation. You have to be careful. If we suffer more from the situation you have systemic. It is true when things become more difficult like tesco was seeing revenues going down, it is more difficult to hide the problems. We have more on the surge of capital. Here is a look at two stocks on the move. And off for belfour. Profits short at the outlook. E will bring you more stay with us, and we are back in two. Welcome back. 1. 6 billionised dollars in the biggest Public Offering for dubai in years. The individual part of the sale was more than 20 times oversubscribed. Dubai has seen a retail boom surged by an increase in tourist arrivals. Balfour are taking a battering. The company sees a further shortfall in the Construction Unit. He willrshall says resign. Ubs sales are slightly higher after they announced profits already exceeded expectations. Beat the 748 million. Ubs made the announcement as part of an offer for investors to exchange their shares for ubs group, which created some demands for separate legal entities. Another company we are watching is air france. Yearsrst strike in 40 begins to wind down, even though no permanent resolution has been reached between the pilots and the airlines. Getting back to work . It will be getting back to work. As of tuesday things will start normalizing. You saw the government putting pressure on the company. You saw Company Management responding. Use of them putting pressure on the pilot and the Prime Minister saying, i am not going to be a. Ediator then after a variety of negotiations we saw the pilot saying, we are not going to come to any agreement but we will the to we will call off strike. Where is it going to end or we will have another strike . I suppose the threat is always there. The samethey are in position they were before. The pilots want everyone to have the same contract. Veryir france management much is pushing forward with plans to develop a lowcost unit and wants to speed that up. We will have to see how the discussions develop. They are looking at Louis Vuitton the love tom the lufthansa flights. It should be getting better. It could be a rough day if you are flying with them. You might want to check the website and see what you want to do. All of their longhaul operations are slightly embarrassing. A tense situation. I have been stuck as well. You and i can talk about that. Coming up, the energy giant strike oil. The russian chief executive speaks to bloomberg. An exclusive conversation with Sergei Lavrov and more. We are back in two. If you want to talk markets, you know where i am. I am on twitter. Stay with us. Welcome back to on the move. I am jonathan ferro. Minutes into your trading today. For seat 100 down ftse 100 down by 0. 3 . The biggest week of losses for the ftse since a march of this year. No big rebound. Here are the big movers. Bit of a rebound, air france, it is one of the best performance on the stoxx 600. Over andthe strike is back to work. Agreement. Up 1. 5 after 20 Million Euros per day was beinge eroded in times of sales. The german lender under the stretch once again. Another investigation into Money Laundering related to iran. Almost near a deal on that settlement of 650 million. Another one. Another one be wall street journal reported. Regulatory issue still overhanging so many of the banks. Check that out. Down 25 . The biggest of all since 1998. Twoing at its lowest since thousand three in terms of share prices. Why the bad news . They already lost one chief executive and this year and did a are not about to lose another one. The interim ceo said i am out. Once we find a ceo, i am out. The Construction Unit being eaten it through another 75 Million Pounds. Will follow now by 140 Million Pounds versus last year. Construction not looking better. Still has to sign up a new ceo and the other one said i am going to go. A nice a deal. One Company Comes back after they sold the usc unit. 0. 3 percent. By the top headlines and bloomberg. It is lower this morning. Protests inocracy hong kong. It is callable as much as 2 . Teargas was used. Crowds gathered in support of a student led protest to oppose the 2017lan to control leadership election. The key week, a big mover. Of the key we, a big the kiwi, a big mover. The central bank warned last week that the kiwi level was unjustified and unsustainable which prompted the move. It isssia has indicated prepared to borrow more than 9 for the first time in almost five years. The nation has shunned bonds for the past few weeks. The ministry accepted 9. 3 pro 9. 31 yells. An exclusive interview with bloomberg. The economy is not in very good shape but a things happen. Recession happens. Not only russia but other countries as well. I am not nervous about this. We will certainly survive. Substituted a way to for the loss, which would be a loss for those of the eccentric services. Let us stay on russia. Does askay have had him may have made a substantial discovery exxon a may have made a substantial discovery. Ryan chilcote spoke to the ceo and an International Broadcast exclusive. Asked him how soon though well would begin production. Production is going to start in 70 years, that if the mid range of my forecast. If the do markets if of the markets demand faster, we can demand faster,ts we can speed it up. I think it will be another to provide a standard return. The mature fields in use around the world are declining. And this oil is high quality. The markets should give us the kind of price that justifies our investments. I think in about 570 years, we will be around seven in years we will be around 140 per barrel. This was a joint project with exxon. Exxon may call other companies. Here has to leave exxon has to leave here. What happened next . Do it on our own and will attract the partners who do not have any limitations on cooperation. But we are not stopping our work with exxon. The project operator is our joint venture. We are not planning on changing the ventures, ownership structure. Plan to continue drilling in the arctic as soon as next yes, of course. We will continue drilling here next year and every year after that. Less boring and Ryan Chilcote who is in them let us bring in Ryan Chilcote who is in a moscow. It looks pretty cold. Yes, it was cold. I am still in my arctic gear. What is extraordinary about this is not just the geography and the arctic, but also the magnitude of this find. If you believe what rosneft is saying and if rosneft can be sure, they think they have found at least as many as 750 Million Barrels of oil and one reservoir. There are at least 30 reservoirs in addition that did they can explore. We could be looking as much oil as in of the u. S. Up best portion of the gulf of mexico u. S. s portion of big off of mexico. Are an international Oil Companies or american and you need to raise production there are not too many places in of the world where local governments will give you access to those fields. Russia is one of them. This is an issue for exxon. Thank you very much. That conservative party as off to a rocky start with a resignation. We will have more after the break. Stay with us. Welcome back. I am jonathan ferro. This is on the move. We will talk about politics. The last conference is underway before the elections. Anna edwards is at the event. Over to you. So much. No doubt many people in this building preoccupied about the threat of the Independence Party with the weekends event and the defection of one mp. Pleased to say that katherine joins us, thank you for joining us. And lots of preoccupation. What does it mean for business . What really matters to business is made to business is made the sure the recovery is sustainable. We want to see all Political Parties committed to get to the investment going and as sports and going. Staying in the european union. Pleased thatrs are britain is better served up by staying in a reformed the key is reform that can make all of the difference. How likely do you think it is will see reform if the relation is not sufficient enough . Aroundave been traveling the europe and we have been to berlin and poland and italy and we think theres a strong appetite for performing other capitals. Everybody wants to see more jobs created a. We do not want to see more young people unemployed. Alliances and gets reform and other small jobs. What would it look like for British Business . What would be the reform . The mayor talking about how he sees the reform looking. Less meddling. What does business want to see . It you have to simplify. Deals aree trade really important. Trade talks with the u. S. Coming up and a Single Market especially digital. And also do less of what it does a valley which are some of the lifestyle regulations and not sure about vacuum cleaners but olive oil incident. Focusing on where it can add value. What are you hoping to hear today . Him to sit out a how he will ensure the recovery is sustainable. Balancing the books and continuing to take action to reduce the deficit. Way to go. Ve a long we would like to see him make investments into infrastructure and particular on aviation, where we have been clear we need to see more and investments in emerging markets from the u. K. Will you like to see all Political Parties including theervatives implementing recommendations. Ed miliband forgetting about part of his speech about deficit. Do you think the deficit will play more in a part today . Speech talking about commitmentsabr and where possible while balancing the books. It needs to be for all parties. We had a talk about a business. It matters to business. We are not building a half of the number of houses that we should. Enough findings about the strength of the u. K. Economy. It grew strong but easing. What is striking things out . Dragging the things that down . Prettyfigures are [indiscernible] there is further to go. What does and the eurozone is impacting on the u. K. That is a concern. I think Political Risk is an issue. That is here the u. K. , the general election coming out. Iso if you look at what happening globally, instability and of ukraine and middle east. Toi am going to be speaking the bankers Association Later and any message you want to deliver from business. Is the Bank Sector Still angry at the business . How are relations between the Banking Sector and business . Of they are getting the better. Members are seeing an increase in availability of finance. That over theon longerterm, we leave to reduce our reliance on just bank finance and we need more tentative sources. Especially those looking to grow. Are pretty good. I am sure businesses or would like to see continued emphasis on making the relationship a bit personal. Isnt there a lot of appetite for the is there a a lot of appetite for the crowd of funding . Be an important part especially daytoday finance. For capital, an interesting look of finance. To reportes who used a really positive experiences. We just need to increase awareness. The sources are out of there. Good to have you here. Katja hall. A lot of focus on the threat from a u. K. Politically and threats from labor as well. Yesterday, the delegates were given gloomy statistics about the state of the conservative polls and of the moment in the face of the latest threats. That certainly is a focus. The elections are very much of the focus. Back to you. A great work, and off. The pulse is coming up a nest. A great work, anna. You about think friday and a bill gross. I am still thinking about friday and bill gross. Over it. Have to get we will be talking about mario renzi. Is he going to get the least left a leading element on . Will he have to go to silvio berlusconi. He is 7880 years old today for the she is 78 years old. 78 years old today. What will George Osborne say today . Are there rabbits to be pulled out of hats . All of that coming up a little bit later. I think i would rather be at silvios Birthday Party instead of the conservative Party Conference. That is just a me. I am sure the conference is fun. Here are companies on the mobile. On the move. The company is sold units. Was 20 times oversubscribed. Do by has seen a dubai has seen a boom. Ubs shares are high. Analystsave exceeded estimates. Million a 769 million beating estimates. And commerzbank is set to be facing another major pro. Familiar,to a press the german lender faces an inquiry. The bank is still tried to resolve an investigation into alleged iran sanctions. May be accused of prospering from illegal has a deals with the Irish Government for more than two decades is the European Commission will unveil details of this probe this week. It could leave at apple with a record fine of several billion euros. The Company Maintains the agreements did not break any laws. As we had it to the break, and of debt on the russian market. The ruble and the benchmark opened up by 0. 4 . Record lows for the russian currency. We will bring you more of our exclusive sitdown with Russian Foreign minister Sergei Lavrov president oughts of obamas International Priorities and the consequences of sanctions. All of that is next. We are back into. We are back in two. Welcome back. I am jonathan ferro. S is on the move we are streaming on everything. All of this morning on bloomberg, we are bringing you our exclusive interview with Russian Foreign minister, Sergei Lavrov. Take a listen. Language listen to the which was used by president to other western leaders, it is a strange language. Russia was put as a threat number two but before terror threats just in the middle east. The not think this reflects attitude of russia and the international community. America has the habit of speaking for everyone and drawing conclusions which hardly , i think it is a little bit the problem is as i see it, it is really unfortunate that instead of concentrating on the substance of the problems and on Building Collective efforts based on International Law and the security council, serious and very serious issues become subject to accusations. Threats are not produced. , thekrainian crisis situation in syria, iraq, and libya, if you listen to some of the western colleagues, it would seem that russia is responsible for all of this. Who not think that people at least are read in newspapers and watch tv, do not know how the libyan crisis started and what is the reason for the current state of the iraqi state variousan discuss the is that but the problem and nobody can pretend that theres a monopoly of truth. Collect its which is is much more promising and much more effective than just you know it all decision without consulting others. We will bring you more of a conversation with Sergei Lavrov in a few minutes was that it is nearly over a on on the move. Check out to the kiwi. The kiwi getting absolutely hammered all morning. The new Zealand Central Bank releases the data and the centralbank sold a net 520 million new Zealand Dollars in the month of august. Thomas system the most since 2007. Will they do more . We are . 77 right now. Prime minister keith has a little bit of weight behind him. The global head of an x next house. If you look at equity markets, across of the board for some ftse not to recover the losses from last week. They are down. The stock is getting crushed. Over 20 . The biggest loss since 1998. Absolutely slant. Concerns and problems with management. Who will be the next ceo . We do not know. Hopefully we will find out. That is it for on the move. I am on twitter. Is the next. Stay with us. Shot down. Hong kong financial district is a closed for the Biggest Police crackdown since the city returned to chinese world. Takes a beating. Shares tumbling into europes a big as a builder. Another profit warning. Plus, a bloomberg exclusive with the most powerful man in rushes oil industry. We speak to the ceo of rosneft as he announces a crude strike in the arctic