The pharmaceutical giant roche has delivered sales of 34 . 8 billion swiss francs. The estimates were 35. 5 billion swiss francs. That is a nine month number. We are also getting news coming , the american medical board approval, for one big drawing. This was the driver for one big drug. Had approval at the fda, thats the block rest are drug in the making by 2019. Lets give you some of the other numbers in terms of pharmaceuticals. Me, theion it gives market was looking for 27. 2 billion dollars. Diagnostics, the other side of the forecast is confirmed for 2014. Next, this is a company thats reduced its debt to equity. A swag bag, where will they go next potentially . Discussionhave a ceo, joining us later in bloomberg programming to run through the numbers. On to one of our other big stories, stocks selling off across the globe. Asian inequities have fallen to a sixmonth low following falls in europe and the United States. Compellingas the statistics. Lets see who has the compelling statistics over the last few days. The busiest day for u. S. Stock trading in three years, the footsie closed down in london by 2. 8 , the biggest oneday fall in more than a year. One ray of light has to be the u. S. Market, although they fell as low as 3 , the close down 0. 8 . Some are suggesting we might see a bit of a bounce for european equities today. That doesnt change the facts that the stoxx 600 indexes down the most in three years. It closed in 11 down from its june highs in correction territory. I will raise you, lets start with the bond markets. Interesting divergence within europe yesterday. Austria, theand, netherlands, all 10 year yields at record lows. The divergence happened in the paris free. Are we witnessing what happened in 2012 or spain, italy, yields were rising fall germany and italy were declining every italian and spanish yields up thomas greek bonds rising to 7. 57 yesterday, the highest since march. The fear is about the bailout. Will greece exit the bailout . Does that make its debt levels unsustainable . You talk about the u. S. And big swings in the stock market. Bondw a big swing in the market yesterday. The 10 year u. S. Treasury fell the most since 2009. 33 basis point moves. A changed at the end of the day and finished down by six basis points. Yields down eight consecutive days, the lowest level since may 2003. Year dropping this month by more than half. Thats why were seeing the movement in the u. S. Bond market. Disinflation, deflation, lack of growth. At levels we havent seen since 2009. The bloomberg Commodity Index dropped for a third day. Copper dropped the most in seven months. Lets hope the bottom doesnt fall out of china. Brent of course at a fouryear low. I think its a combination between oversupply, opec, will they get their act together . Wti andhave a look at brent later. Is it 1986 again . A lot of lessons from history. They say get ready for print at 75. For brent at 75. Would continue to see low equilibrium. We will continue our markets coverage all day today here on bloomberg television. On the pulse after 10 00 u. K. Time, do not miss that. Weve also had some breaking news earlier this morning from , the boardugmaker has recommended shareholders vote against its 51 billion takeover because of concerns that tax rules have changed. That would undermine the rationale for the deal. They say the takeover not in the best interest of the companys stockholders. Since september 22 when the Treasury Department announced these tougher rules. Two other u. S. Companies have ship theirns to legal addresses to lower tax countries. But the news harley spell the end of the merger because five of the deals pending at the time remained on track. Two new ones have since been announced. It depends on why you are doing the deal. , in this eight minute the statement, they recognize there was some strategic rationale. Take everyecessarily in version deal and treat them as if they are all the same. Perhaps in some cases the strategic rationale outweighs the tax situation. The other thing as far as the u. S. Is concerned is the loss of tax revenue that would possibly see. Driver was sharp pharmaceuticals. There was quite an impact and European Equity trading. Had rebuffedy it has had its impact. Be interesting is whether all of the move was priced in yesterday or today. Lets return to that selloff story. Digestrs will have to european inflation data later this morning. We have mark oswald, great to have you here. Try and make some sense of this. Down at 1. 89 , have the markets capitulated . Is it an opportunity to get involved in equity markets . Youve never seen bonds quite so expensive as they were yesterday. Cheap. Markets look its time to do a bit of bargain hunting around. Also in the bond space, higher risk credits, im thinking yesterday there was a very sharp african dollar debt. Some of which was very wholesale. For those countries in front your africa which are oil produces, clearly this is a big problem. Some of them which were sold off in sympathy, like kenya, which is not a major oil producer, should not be down where they are. Its in a good position, economically its definitely improving. Of course there is the ebola consideration, but thats a consideration everywhere. One should not overplay that particular card. There are bargains to be had. What weve had is a fantastic display of how underlying liquidity in all markets is extraordinarily poor. What we had yesterday was a very ugly example of how a lot of low volatility structures were put in the eurodollar market. You could start getting an uptick in volatility, and people then have to rush to hedge their positions. You end up with finding theres no when theyre actually two financially intermediate in these markets. Thats the way Financial Markets have always worked in a crisis situation. The Market Makers tend to stand away and tell you that price may have been there five minutes ago, but its now two points lower, what do you want to do . Its time to reassess when the forecast the fed is going to raise rates, expectations are moving back by the day. To 2016me to push it rather than 2015 . I dont think it is. I find it very amusing that that story of janet yellen talking to people came out literally within minutes of the feds beige book yesterday. It was clearly a plot. There is no doubt about it. While they dont want to constrict themselves to a timeline, this was the whole point of explaining what considerable time means. Sometrying to carve out room for maneuver. What they will say they want to do is see Financial Markets pushing back too far. Would you call it a real pushback . That is nothing. In euro dollars, if you look at december 2016, they have taken 75 aces points of rate hikes out of the eurodollar curve. You are going to stay with us and we will continue the conversation and have a little bit more from mark oswald later in the show. Coming up, nestle is set to report earnings any second now. We will bring you results as they break. Do stay with us. Welcome back. This is countdown. Just getting some breaking news from nestle, the worlds Biggest Food Company. Organic sales up by 4. 5 . Analysts were estimating 4. 7 , just a slight mist there. It has kept its fullyear outlook unchanged. The forecast was for sales growth of roughly 5 on an organic aces. The average increase over the last decade has been 6. 1 . The good thing is it has kept its fullyear outlook unchanged. Narrowlyales growth below expectations. Nichols, what do we think is the early feeling about these numbers . The good news is it has kept its outlook unchanged. That is important because there were so much global risk out there. Whats interesting here, we have sales,t miss on organic but what were really looking for us with their pricing is doing. Those will be crossing here just momentarily. They do have a lot of exposure with the for it with the swiss franc. Exposure in africa in asia. Its hard to remember that nestle is the worlds Biggest Food Company. They are making a big lay in russia. They want to have some 200, potentially 250 nestle stores where they start selling bottled water and other goods inside russia. We will look to see if they have any indication on what their russia plans are. Overall, the numbers look like they are in line with expectations. A slight miss, as you say. When you look at nestle as a company, look at it by the numbers, they have 2000 brands, its a massive company. Of 30 billion. Around 997enue billion. This will give us a good overview of whats happening in the Food Industry globally and whats happening to Swiss Companies that have that strong frank. We will do a deeper dive but i think its safe to say everyone can enjoy a cup of hot cocoa and maybe even a gilbert. We talk about deflationary pressures in markets such as france. Important rawy material for nestle, isnt it . Will take a very close look in terms of what theyre doing with cocoa coming in. Up,had six months going thats largely because of ebola. Ebola has not really taken hold in ivory coast. Ofyou start seeing reports ivory coast having some sort of ebola outbreak, its going to Ivory Companies like coast. There is a graph showing its really gone up quite a bit in the last six months. We will see you later. The chief executive of nestle joins us in the polls with his first interview of the day to talk about those results. After the break, the second part of our conversation with mark oswald. How much does the deflation debate in the euro zone matter . Are iny a lot if you that debate. Welcome back. Oswald is back with us. We were having a discussion in the break. Hopefully the cost of living is going to drop, but its potentially a big issue for sovereigns. Why . You have a great example you are chatting about. The greatest example comes from a 19thcentury britain. At that time the economy was at the height of the industrial revolution, the economy was expanding strongly and we had deflation here in the u k the difference between now and then is that written didnt have a huge amount of debt. It did start to accumulate along a lot of war related debt thereafter. You dont want the debt to become larger as a result of ablation. What can we say about how good or bad Lower Oil Prices are for the Global Economy . Traditionally it has always been viewed that Lower Oil Prices are effectively like a tax cut. Unfortunately if you have a lot of debt, it doesnt actually becauseot of difference youre disposable income is still being impinged by the fact that youve got a lot of debt. Is priceseally want to rise so that my wages can rise so i can pay off my debt more easily. Thats essentially the problem that most sovereigns find themselves, its not just eurozone problem. Of u. K. Has totaled that 500 , something that is often overlooked because we have our own currency and the eu is currency. O its own its not actually some form of hannah cia, it just makes life a little bit easier. On the subject of the ui a, what about u. K. Rate expectations . First this weeks insulation figure, and the unemployment. Eport the numbers were not as rosy as the headline Unemployment Rate suggested. We focused on the states a lot on the participation rate. Participation rates have been falling. The key with the Employment Data , q1 we wererday a 2. 10 employment growth average. We still have very high levels of agencies in this post crisis time. So its very disappointing that were not creating more jobs here in the u. K. As for the inflation story, by nextstandards the riskiest month because we have we will go down below 1 . By u. K. Standards, that is deflation. Weve always had about 1 more than the rest of the eurozone. So we are pushing very heavily out on the u. K. Timeline for rate hikes. Is stillhe Market Pricing in the idea of september. The problem here in the u. K. Is the problem seems to be slowing at exactly the wrong time as we head into an election which one would hope after it, there will be a lot done to address some of the issues. There are problems with the u. K. Economy, but it looks like we will have a hung parliament. We may have to go to another election we might also go to an Eu Referendum which will deter both the mystic and International Investors from investing in the u. K. Economy just when we need that to kick in. Thank you very much indeed. Great to get your thoughts, mark. Up whats been happening over the last few days, you can join in our conversations on twitter. Of us know what you think the latest market moves and anything else were talking about here on countdown. Coming up, the bskyb final earnings report, how important are todays results . We will find out, next. 6 30 in london. Time for Foreign Exchange check. The bloomberg dollar index, the kets have moved possibly they have moved their probability to december 20 15, 35 percent possibility. The start of this month they were looking more like july. Janet yellen came out to try to support the view that the u. S. The base but did it for her. It does nothing for the dollar. Lockhart speaks today, atlanta fed. Moving on, the aussie dollar. There you go, trading at 87. 86. Weve come back through that 88 level, surging as some people say you had a dollar capitulation. Will it last . These are the bloomberg headlines. Concerned about ebola growing after a Second Health care worker in texas tested positive. U. S. Officials are contacting at least 132 people were on this womans flight just a few days before she was diagnosed. The infected worker did alert u. S. Health officials to her elevated temperature prior to flying, but it was below the fever threshold. The market selloff threatens to derail the countrys exit plan. Deals on the greek tenure bond reached 8. 01 yesterday. The highest since february. Docs have fallen more than 23 and the last month. Italys cabinet has approved its budget for next year. The prime ministers plan includes 18 billion euros in tax cuts. The budget must still be approved by the European Commission which wants italy to reduce its deficit by 2 trillion euros. The french spirits producer remy reporting results this morning. Broadlyng looks to be in line with expectations. Concerning the 20142015 targets, organic sales down 11. 8 . The estimate was down 10 . 5. 5 . Anic sales down that is exactly in line with where analysts were expecting it to be and the q2 sales number, 257 million euros. Analysts expected 259, so slightly low but still in line with estimates. Lets turn our attention to hong kong, the democracy demonstrations have grown again. Pictures of Police Beating protesters, authorities claim that have been in contact with the student leaders. Fromn chen joins us live hong kong. Any sign that we are anywhere near an end of this . Like weeks, it looks nerves are beginning to fray on all sides. Within the last halfhour or so we actually have heard that the government is going to hold a press conference. Attending will be the chief theutive of hong kong and secretary for constitutional and mainland affairs. They have not said what the press conference will be about. Its going to be at about 45 minutes from now. They werethey said using intermediaries to try to see if they can at least take steps toward opening up a dialogue of some kind. At that time the secretarygeneral of the Student Federation said he had not heard yet from the intermediaries but he also said they would welcome the talks if that were the case. Are waiting to find out what might come from that press conference in about 45 minutes and if its going to be related to that. Roslyn, thank you very much. Normally an apple product release is shrouded in secrecy with only tantalizing teasing about what is going to be released. Details and pictures of the latest tablet appeared briefly on its website. How rare is it for apple to give us a glimpse of a product before it is revealed . Sometimes we get leaks, but not usually from the company itself every very unusual him and these folks are the masters of suspense. To have Something Like this happen is very unusual and not totally unheard of. Of and, an engineer early Generation Source iphone 4, prototype in Development Left it in a bar. That got out on the internet and apple was very embarrassed and unhappy about that. So its very rare, but not unheard of. What is the importance of the event were saying seeing take place today . Sales have declined for two quarters. About 12 hours, the company is expected to show the new version of the ipad, the 9. 7 inch ipad and smaller version. Sources have told us they expect it will be in available in colors like gold and it will be thinner and faster, kind of the typical rollout. Its important because it is the second biggest revenue generator for the company. The market for tablet has become more competitive. Its a market they really created. The Companies Making a push to sell more to businesses and companies and schools and government as it looks for new customers out there. Thank you very much for joining us, tim higgins in san francisco. Bskyb reports in roughly 25 minutes. Company recently acquired skied deutsche land. Here is paul sweeney from bloomberg television. With this consolidation of the german and italian franchises, is it wellpositioned in this rapidly consolidating european paid Television Space . Is. Think it they sensed the u. K. Market is competitive in terms of pricing. There is lots of competition in the u. K. They look at where they can get growth over the next five10 years. Consolidating their italian and german businesses was recognition on their part that there is more upside from a paytv penetration rate story longer term, so thats where theyre putting their capital going forward. Those are the challenges why they are looking out the u. K. What is driving the consolidation across europe . Of programming is going up dramatically, particularly sports programming. At the global phenomenon. Rights seem to grow by up to 100 every time. Thats something that has to be borne by the paytv providers. They try to pass it on to consumers but at the end of the day, the cost of programming is going up. They need to allocate that