Rivals. Good morning and welcome to countdown. I am mark barton. Is 6 00. Me in london stocks soaring after the bank of japan voted to increase the target for monetary expansion. They 54 for an expansion. Is our economist from tokyo. 32 whober is 3, 3 out of saw this coming. I thought at best, the boj would be telegraphing actions down the road. The Inflation Numbers were disappointing. Paul krugman for the new york in japan, is talking about the need for them to take action. The way stocks are reacting suggest people are enthusiastic. We have the problem with structural reform. Nomics. Waiting for abe boj policy moves are good. They lubricate the process. Make the road easier. We are waiting for the government to do its part. What does that tell you about where the bank of japan is against inflation targets . , corsi pi at 1. 7 . I at 1. 7 . Their are realizing the inflation is not the problem. It is a symptom. Re was a lot of concern about the future of japan and asia in general. It is being reminded that great for Monetary Policy to pump money into the system. Making they about economy more entrepreneurial and innovative. Increasing productivity. Have not seen a lot of that from prime and. A lot of talk but not a lot of action. Lets talk about sony. Releasing quarterly numbers. Billion. Ss, ¥136 against an estimate of ¥193 billion. They are talking about the smartphone outlook. Cutting a lot of their forecast, it seems. The bar for good news in japan is low these days. Develop argue this is a good news day. They are a microcosm of where japan finds themselves. They were a want they are a once great product. They are kind of an Insurance Company and bank. They dont make much people want. They are coming up against headwinds. The wiki and has been a godsend, but they need to innovate and hasructure the week yen been a godsend but they need to innovate and restructure. Much. Nk you very joining us from tokyo. They are maintaining their overall for your forecast. Year forecast. From Consumer Electronics to banking. Biggest bank in france, earnings crossing the bloomberg terminal. They have beat estimates. Income basis net rising 11 in the Third Quarter to 1. 3 5 billion euros. The 1. 35beating average estimate. Fixede had a rebound in income trading as well. Facing april commission in 2015 on dollar clearing operations facing a prohibition in 2015 on dollar clearing operations. Our correspondent from paris. She spoke to the cfo earlier. What did you learn . Morning. It seems to be pretty confident that the largest bank will be able to bounce back. After the record loss of nearly 6 billion in the second quarter. Earnings are beating estimates. Despite the fact that next year, they are going to face a dollar clearing man in the u. S. Dollar clearing ban in the u. S. They have benefited from an increase in fixed income. And drop in provisions for bad loans. One thing to look at is the italian unit. Provisions. Presents i asked about the performance of the Third Quarter and the outlook for european growth. Have a listen. It is on the back of growth in fixed income. Also, the specialized businesses. Insurance securities. Also noteworthy is the cost of risk, which went down 9 . We have closed two deals. Anotherr in france and in poland. Finally, a Balance Sheet that stands rocksolid. Your ratio is 10. 1 . Stressed test. B but most of your fine with uncounted in the stress test. G what you see is what you et 10. 1 includes everything. It includes the acquisitions we id. What we have now is a 10. 1, which includes everything. We feel very comfortable. The french, italian, and german economies are slowing down. What are your concerns . Ifif you look at indicators like the investment going on for structural reforms, that is negative territory. That is an indicator you would like to see pick up. If you look at the bellwether of the banks, the pickup is not materializing. One of the things that could be instrumental it is focused, a contingent on the indicator of investment for growth picking up. That could be really working well. We are reviewing the process, which is ongoing. How this can work. We will be participating. In supporting growth going forward. The french revenues are down 2. 2 . What are your concerns about the French Economy . Yeah, of course, france is faced by low interest rates. Which is something that is of course weighing on it. On top of that, there is regulation with respect to commission since 2014. You have to focus on your clients and operational efficiency. Reap the benefits of the stringent risk management. Thats what we continue to do. The cfo is bnp. Saying that the cost of risk is down what they are seeing risk in europe, especially in italy and france, the home market. Fell by more than 4 . They are waiting for a waiver in the u. S. To continue serving clients. Will talk more about this in the next half hour. They give a much. Thank you very much. From banks to beer. The thirdquarter numbers. Earnings before interest tax. 4. 75 billion. Below estimates. For 5. 03ates were llion dollars. It seems the organic Revenue Growth number has been weaker than estimated in the third. The estimate was for 4. 4 . Missing that by some margin. Volume growth down 2. 6 . Estimate was up. It seems for organic growth and owth, they have missed estimates. They are saying the u. S. Industry volume trend is improving. The boot is l the brazil growth is improving to read on that russia and the slow growth in europe. Is those parts of the world that analysts have been concerned about. Who will keep an eye on that when it opened in just oh opens in just under two hours. Conversation on twitter. Tell us what you want more of. We have been encumber station with will it be trick or treat for the u. K. Housing market . That subject and many more, including the latest news by the bank of japan. Moves by the bank of japan. Time for todays company news. A threeday rally for the Biggest Smartphone maker, samsung. Market is anticipating restructuring. A criminal anticipation anticipated for rigging currency markets. Costsnder says the legal are jumping 600 Million Dollars. Thats on top of 950 Million Dollars in legal charges revealed earlier. They are cooperating with regulators in the u. S. As was the u. K. And switzerland. Sand chart stancharts stock has fallen after why the boj surprised everyone when everybody but three economists surveyed i bloomberg were you one of the three . Koroda teams to have is timing right. They have declared asset purchase on the same week the fed signaled the end of qe. Like mobileseems devaluation pressures are here. Will be talking about divergence and centralbank policy for some time. Is there value in surprise when it comes to these things . If so, the ecb will be less behind. Will be we have been talking wehether qe with have been talking about whether t. Will come from the ecb the core scenario pricing in the markets is the governing council will want to see the effect of the measures being supplemented. They were announced in september. The effect of name beta negative interest rates. Dataite obvious from the we are seeing, the decline in business sentiment, even in the strongest and largest economy, that the eurozone is slipping back into contraction. These are not the same force us that drove the crisis in the early years. There is a clear lack of momentum and demand. Inflation of stimulus. That means the euro is at a risk for a second stagnation. It seems that japan will reach its inflation goals . They reduce their forecast for 2015 to 1. 7 . From 1. 9 . It has reduced that forecast. Hitt unlikely they will that goal . That is a real question. The only thing we do know is the bank of japan has the psychological advantage against other banks. Ahead with more asset purchases. That will help to give me yen. This weaken the yen. Will help to weaken the yen. You cantion is how much improve the competitiveness of japanese exporters. The questions the boj faces is, are there enough assets on the market to buy . The boj hast been struggling to buy enough assets. It is any of that liquidity going to reach the real economy . Or will this be a circular flow of assets between the pension fund and the boj . Without the cash having an impact on demand . The Monetary Policy is one of only three arrows. They are firing at the economy. Are you underground or overwhelm the . Ed . Underwhelmed. Defector the fact that there has been no buzz about this for some. Time like they now makes abenomics is going backwards. It seems there is too much financial repression. The impact on growth, gdp yield we have eurozone inflation data today. Hold your breath. That andiscuss all of more after the break. Welcome back to countdown. 6 23 and london 6 23 in london. What you make of the bank of england taking a tougher stance on leverage at the banks . Is that going to have a big impact on the Banking Sector . Maybe they are less able to lend than they want to be . The bank of england well launch will lunch leverage requirements this coming after the stress test, which were more lenient. U. K. sll highlight the leading position in europe. I dont think this will have Immediate Impact on the Banking System, but it will have an impact on the growth prospects. Leveraging any financial markets. It will constrain credit growth in the real economy by limiting bank ability to take on risk. In the context of the inflation cycle right now, especially with house Price Inflation slowing down, it will help to limit those worries about Credit Linked to Holding Interest rates low for so long. It will allow the bank of england to focus on the deflation pressures. Matters, centralbank it seems as if the gdp number endingied in being qe qe. The three elements that were missing in the statement are what defined the perception this was hawkish. As the fed moves toward a conditional forward guidance, anch means there is expectation contingent on the the rather than a guidance, signal the market has a tolerance second thing is, you are right. Be tooem to not concerned about the decline in financial inflation expectations. Suggests thellar fed is less concerned about this. The fed earned asset purchases without any note for the recent volatility. It suggests the markets are more conservative less concerned about managing risk. Briefly, lets go full circle and touch on the ecb and bank of japan. Weve see a resurgence of concerns about whether we are turning japanese, that same old argument . Absolutely. There are two major points that with a fine the fundamental argument. One came from the stress test and another from the governing council statement. The first time in its history, the ecb dropped its statement and the Banking System is unprofitable. Thank you so much. Lena. We will be back in two minutes. Welcome back. I am mark barton. But look at the fx check. There is only one currency in town, the japanese yen, after the boj increase monetary stimulus. The yen fallen by 1. 6 . It has touched a lowest level since 2008. The government bonds for japan also rising. Boj says they will expand the Monetary Base by ¥80 trillion a year. Economistsof 32 predicted an increase in asset purchases. That has not been confirmed. That is report a report to be due to a newspaper. It is all about the yen, trading at the lowest level since january, two thousand eight after the boj unexpectedly increased unprecedented monetary stimulus. I am anna edwards. These are the top stories. The army and barking of us who in burkina faso to says it has taken power. Largest cottond producer in Subsaharan Africa and the fifth largest gold producer. Agreed withit has ukraine on supplying natural gas. Talks overered resuming delivery of gas, trying to avoid a repeat of the winter fuel crises of previous years. Tougher s bracing for debt finance ratios. The largest mortgage provider, lloyds, warms the warns the move could have an impact on the cost of home loans. And a trick for harry potter cans. Fans author, jk rolling, has published a new story just in time for halloween. They have reported results. Bank acceptedest a temporary ban. Bmp is still waiting to hear if the u. S. Department of labor will grant a waiver that will allow it to continue serving clients after sentencing. We spoke to the ceo. With respect to the settlement, we agree with u. S. Authorities. There are an element series of elements that we have to work on. We are moving on several of them. We have meetings with the regulators to track progress. All of these irons are in the fire and progressing. If you genetic it get the waiver, do you have a plan b if you dont get the waiver, do you have a plan b . There is of course the defective one year. On energy and commodities, we do one year dollar clearing for that part. That is the major thing we are doing. That is progressing well. Did you find another bank to do the clearing . With respect to the clearing, there are several sites. Sides. Are you going to progressively abandoned oil and gas financing activity after what happened . The end objective is all the dollar clearing will happen through bnp in new york. We have put in place control mechanisms for that. That should settle the matter once that is implemented. Will that mean a slowdown of International Expansion for bnp . I think that will be speculation. We said acquisitions are part of how we want to we deploy capital. If they give us that it will mass, or can give us skills or access to clients like what we did when we took over part of rbss equity activities, if we can get them at the appropriate point, that is what we like to do. We are pleased we have done those. The rest will be speculation. There have been some changes in top management. Impact of thehe fines on bonuses for top management . That, for thet to people this year, there will be a review of the activities and basically that will be the basis for the bonus. There should be no further ramifications. It has been a brutal quarter for airlines. Economic woes and concerns over ebola shaking earnings. Can aig fare any better . Here with a look at the numbers as caroline hyde. What are we looking at from aig . They seem to have flown to this turbulence pretty well. They are the owner of British Airways. Also the owner of the discount provider in spain. Francee have seen air suffer crises of their own making, we have had external political crises. Ukraine and syria. Ebola to add to that as well. All the time, we have these older generations of airlines facing competition from the middle east and discounters. Have operating profits set to rise by a third. Sales set to increase by 8 . What we want is the target. Will we see willie walsh stick to the target that he will see half a billion euros more in terms of earnings next year . How has it maintained its discipline . He has been forthright that he has been disciplined. He last earning statement, says he has been a model of cost cutting. The slashed 3000 jobs over spanish unit they took over. Steer througho that entered a profit in the last quarter. They struck more modest settlements with some of the pilots and ground staff as they went on with the pain negotiations. They got the negotiation tactics right, unlike air france. They have added capacity at British Airways. We see air france ticket away capacity. British airways is adding it. No wonder the shares have outperformed the most of the rivals. Only ryan air has been them beaten them. It will be interesting to see what they have to say about oil prices as well. Airlines luck the in the prices we have seen . Ebola is having an impact on the sector, even if it is psychological. Peoples booking behavior. This is what is striking. He has pushed it to one side. He has stated, it is not impacting us in any way. They stopped flying to sierra leone. Said that was more a question of demand. Not a demand of district aestion of concern not question of concern about the spread of the epidemic. His outlook for the Fourth Quarter . Can they steer through this . Rd that thea economy is going to be pretty thick. Some say by and others sell. So far they can do no wrong. November is upon us. The mustache may only be around for 30 days, but the beard has been making a comeback. We went to the home of facial hair to ask in expert ask an expert. Everybody wants to try if they have never done it. You spend your life shaving your beard off. It is something for everyone to try because it has become so popular. Im the master barber here. It is a bit of a myth that having a beard is a lady version of grooming lazy version of grooming. It takes a lot of work to keep the weird looking sharp. You need to slim down the sides and chin. Do it justs to before a holiday. That way, you come back from work with a reasonably good coverage. Naturally, you always get a reaction. The reaction to over grooming is to go the other way. Groom out and thicker. November, the general consensus is you start the month with a clean shave and then you have a month to grow it. In real terms, that means you will not get enough hair. I am all about cheating. Maybe start growing a little bit before and then have a full shave everywhere else. I suppose subconsciously what you are saying is, i can do what i like. I am free of the shackles of corporate kind of image. Plenty of tips for you there, mark. [laughter] the advice is to grow one when you go away for a week. Would it so happens i am go away for what we look like during your return . You can watch two for to find out. Sonys sales. Well have the answer for you next. It has been a busy week in tech. Twitter, samsung, and sony reporting earnings. Joining us now is an associate managing director. Thank you for coming in. What about sony . It is the story of a company with two halves. One is the handsets and the other is the games. What do you make of it . The headline figure, a 1 billion net loss, sounds ghastly. That is actually all technical. They put in a new cfo. He is going through the Balance Sheet. It is part of a general cleanup job the company is doing. If you exclude 176 billion in writedowns, this was a good performance from them. Overall guidance for the company the evidence, they are going to beat it. Two outstanding performances. Before your forecast for the margin is about 5 the for your forecast for the margin