The president of the European Central bank as he prepares to reveal his next move. Welcome to countdown. Im manus cranny. Im anna edwards. Lets begin with banking. Mapping out the next five years at the bank. He made clear that the bank would be hiring fewer highly paid Investment Bankers in the future. Of pay, we believe in paying performance and pain competitively. We are able to do that as we reposition the business. Of course as we make our Investment Bank more focused, that means we will ultimately have less in highly paid people within the organization he read that is in line with the strategy. Cuts we heard that you are looking to hire. How far are you through this process . Are you only looking high within certain divisions . Absolutely. It is about focusing on the areas where we have the ability to grow. We have to reshape and refocus to do that. It is part of the evolutionary process. That allows us to invest back in our franchises. Africa is an exciting growth upward unity. Growth opportunity. What will barclays look like in five years time . Were focused on things like the reason for that is the cost of technology is falling exponentially. Thismeans the complex is the banking can be transformed. For example, in the u. K. , we have over 3 Million People using mobile thinking. The used on average 20 times a month. It is creating the ability to connect much better with our and in a at lower cost much more streamlined and affect if way. Very much many people at all levels. If you want to get a mortgage, you have to talk to a mortgage advisor. If you want to raise cap will, you talked an Investment Banker. All the routine activities people do today. In 2007 itt wasnt very nice. Streamlined. I think there are a lot of lessons to be learned. In my view, what went wrong in the crisis was that banks in particular misunderstood the risk there are carrying on their Balance Sheet and mispriced that risk. Look witty the drive that. Banks failed. Big banks failed. At the corvette is this notion of understanding and management of risk. I believe the regulation change theyre holding much more capital. Jenkinsays cdo antony o antony jenkins. Caroling conan is standing by in the wrench capital. Connan is standing by in the french capital. Good morning. Eurore missing the estimate from bloomberg. The three main challenges. First, the French Economy. 4. 2 in the situation remained sluggish in france for this year and next. Despite the increase of loans for companies of 6 and the Third Quarter. The second challenge is russia. Represents roughly 3 of the Balance Sheet. The contribution to earnings from russia with only 16 Million Euros in the thirdquarter. Finally, challenges on the market. They had their revenues from Equities Trading down 25 in the quarter. I spoke exclusively to the ceo. Here is what he had to say. It is hard to say youd we achieve this performance in an sluggish environment. This summer was very calm in terms of unity. Activity overall, dynamic in terms of commercial tv, new clients. All this is very strong. Lower volatility, lower volumes. However, they are not increasing their provisions for litigation. Their provisions remain at 900 Million Euros. Caroline, you also talked about the ecb and european growth. What did he have to say about the agenda . Of course, the main question Going Forward will be how resilient the economy will be in the next few months. It is much more than the bank index. Mainly due to the low growth in europe, the easily passed the ecb stress tests. I asked whether he wants the ecb to do more. In terms of Monetary Policy, at our when i look bank, we do not need liquidity. We have to lend. It is more a question of demand. It is a question of confidence. Europe has to be more competitive. We need to be able to innovate. And it education is also important. There are structural policies that need to be implemented at the european level. They do not need more liquidity from the ecb even if the situation in russia to chair culture isr capital up from the previous quarter. The situation in russia on the Impact Capital levels. The situation, he says, is under control. Caroline connan reporting from paris. Lets stick with the banks. They breathed a sigh of relief. They got to the stress tests. And delivering a net and come that Beat Estimates. 185. 5. Why . Whole of 2014 they are dying. Third quarter, dropped by 31 . Expense is a bit higher. Riskweighted assets. A small reduction. The core part of the paint euros. 3 million a bit of a relief. The largest Generic Company in europe reporting numbers. Thirdquarter numbers specific way. Sorry, fourth quarter. Below thest a shade estimate. Thats one of the headlines. The other headline is that siemens is agreeing to sell their hearing aids unit. That was the story that bloomberg took a week or so ago. In terms of forecast, they are saying they are going to see 201 5 increase. They are also saying theyre going to face euros in project charges from the wind power business. 2015, they sayo that things look complex. We will pick up on all of those themes when we speak to the ceo. Fact in half an hours time. Indeed. Coming up, all eyes will be on mario draghi. Low growth. The euro versus the yen. Stay with us. We will talk ecb and the president s next move. Welcome back to countdown. Im anna edwards. Profits thatrting Beat Estimates. Orders for its electric car will increase next year. Tesla says its new model wont hit the roads until this time next year. Later than expected here at nevertheless, stocks were out. Tokswagen is recalling audis repair a defect with the vehicles airbags. The floor effects vehicles ranging from 20 132015 models 20132015 models. The problem was not hardware and would be quick to fix. Purely as software issue. 20 minute reprogram. We have made the recall. We notify the government. We notify them of the issue. When you have these context vehicles, taking the risk on technology doing what we do is to be expected in some ways. And the summit wraps up today. Peter teal speaking to bloomberg. He dismissed the idea of another tech bubble on the way. It only happens when the public gets involved. This time a havent been involved. A big reporting day or toelecom has telecom Deutsche Telecom. Lets get a sense of where we are with these earnings. A bit of a relief. What to make of them so far, hans . Good morning, by the way. Good morning to you. They have returned to profit for the first time in two years. The added customers in the u. S. Looks like the decision where they get a third of the revenue might have been the right one. There it is even more impressive. Oppressive feet. Operating expenses were a little bit. And we get to siemens. Siemens basically comes in line. For about 2. 2ng billion euros. They need a lot of money. They bought the energy business. In about 15 minutes we have adidas. We have the whole cycle. That we worehoes as kids and as adults. He going to the banking sector. Maybe it is the tombstone. Most of the numbers are pretty impressive. It is cradletograve. What about the house you live in . That is where you could have gone. I know a thing or two. We will catch up with a little bit later. Hans nichols in berlin. Pressure is mounting on mario draghi. The threat of deflation in that eurozone looms in another exclusive bloomberg interview. Any measures from the ecb may be too little, too late. Curve. Zone is behind the theres massive disagreement within the council. That will not happen. For meeting reaction to that, we are you joined by an economist. Good to have you with us this morning. Morning. Anning good what is the statistical possibility . I think if we look at the expectations around the meeting today, special now start, we dont expect that as a case line. President drop it raghi to beh d dovish. There is a substantial amount of measures. Were not able to drudge in a very global way what will be the Balance Sheet due to the fact that there are some operations. Allocated. To be most importantly, there is going to be a substantial amount of liquidity. Is there anyone that thinks an early Christmas Present will be the months that mario draghi and team press the button on fullblown qe . Is that a misplaced expectation . Fullblown qe probabilities are high. What is more likely than not in december where the ecb will of rate and downgrade is an extension of the composition of the program. Detail like you have been saying. We will see more detail and what is his ackley targeted at the moment. They could be a target for the ecb. There is consistency with the larger Balance Sheet. We had to be frank with the fullblown qe. It is quite substantial. About the baseline scenario, if there is enough in the pot, what we expect to move up words that would satisfy you to say they are beginning to we are seeing a process a very low inflation. Hat is why the probability thank you so much. Stay with us after the break. Welcome back to countdown. Im manus cranny. Im anna edwards. Seniortill have a european economists. Everyone is saying it is a boost me, ever and around the table. I think in the shortterm, oil will certainly be relevant for the assessment. We still think with that Energy Prices behind some of the most importantly in terms of what we are seeing on the shortterm inflation, within the weakness and energy isis, was probably behind the forecast. The relatively weaker compared to the expect nation. Certainly. Le, we are looking at it carefully. Side. T is the monetary what about the demand side. It is actually more a problem of Credit Demand for him. Definitely. There are positive indications. Of micro improvement. What is constant is the overall picture for income generation within the eurozone. That is momentous for us. Thank you for joining us this morning. Good to be here. Senior european economist. Coming up, we taught gold. Welcome back to countdown. Im anna edwards. Time for im manus cranny. Exchange. Check on dollar yen traded 115. Barkley said if it beats estimates, 117, hello, if it misses, the baseline is 112. Be wary. Thatr yen is oversold on one. Of the yen, this is the challenge. What the japanese have done. Aussie bonds aussie yen at a high. Raw mature has lost a percentage of its value. Anna . Lets talk about sports where. The estimate was for 4 billion euros. 49. 3 s against previously. That seems to be weaker than previously. This is a business that is facing challenges on a number of front. Their increasing the leverage. Cap get nike encroaching on their own home turf. Of course, there racing the phenomena that seems to be a declining appetite for golf. That is something we have talked about on the program a number of times. That makes this business the worst performer on the dax. They had to step away from their operating target. That is what they set back in 2005. One analyst says this has led to a did of lawson confidence from for management. He set up the strategy for his successor. These are the Bloomberg Top headlines this hour. The ecb holds is monthly meeting peter the ecb is unlikely to move its benchmark interest rate. To becus is more likely on remarks made in the News Conference. We will bring that to you live at 1 30 p. M. London time. And the new president of the European Commission says the u. K. Prime minister David Cameron has a problem with his fellow european leaders. Juncker says he will rebut and accusations from the eu, including cameron. One company will keep an eye on is a report of earnings at the top of the next hour. Just under 30 minutes. Will that selloff continue . Did you like that one . I did. Gold price is set to decline, especially if the dollar appreciates and the fed turns even more hawkish. Bucks at the end of next year. Their message is dont try to catch a falling it is interesting when you try to apply the gold price to the gold miners. Some must be feeling the pain more than others. Had to look at making money when producing gold. Only 12 are making the money out of the gold they take out of the ground. The production cost is higher than the spot price. It is actually cash flow negative. That number goes to nine out of the 19. They are all on the cusp. It is. Theres one analyst who is saying about a third of the Gold Production right now in the world is underwater affectively and has been since the price hit it was a while ago. We have this two tier market. We have class acts. Have in mining their costs during the boom. You have got those who may be worried that sensitive about costs. There are now in the doghouse. Some are winning and some are losing. Gold producers are getting punished more than the gold price. If you look come if l ball for 5 . You look at gold producers. One of the index is that we use, the s p index, that fell 16 . A gold miner,ding chances are youre probably not seeing the share price of your companys rise. Having said that, theres relative strength on the way down of who is doing better and who is losing less. Most analysts agree that they have a flexible business model. They can scared skill down easily. There is a relative winner in their shared compare that to harmony mining. A South African miner. Thirdbiggest. There got high price. They are underwater right now. A goes from hero to zero. , more on gold and have an hour. All three of us will have a conversation with the ceo. Mark bristow. They report the recording Third Quarter earnings. An 18th century castle with the medieval prison and moat not my house. [laughter] a lot more affordable than you think. There is a catch. Onset nichols took a look hans nichols took a look. Bridge and step into your own fairytale. An 18th century german castle yours for just 350,000 euros. Scaling the cows the wall is easier when someone is in alls is hot castle w easier when someone is not pouring hot oil on you. It is more Brothers Grimm horror than disney fantasy. The problems are modern. The challenge of selling this stronghold located two hours south of berlin falls to the local humans the polity local municipality. The Sticker Price has a catch. Investments in this castle depends on the renovation costs. It is a realistic expectation. Under communist rule in old germany, the shaells dot the countryside. As a resident of one family, it is a little big. For luxury hotel, it is too small. Something in between is exactly the right thing for this castle. If an angry mob crosses the moat, you could address them from this balcony and perhaps figure out some way to appease them. If you get castle fever, you could cross over the moat on a rebuilt medieval bridge and head into town for a beer. Ichols, bloomberg, germany. Did he have to climb the wall . It does have a door. It is the dramatic effect. [laughter] amazing what you could buy for 350,000 euros. I looked in london in knightsbridge. What did we find . One studio flat. [laughter] just a bed. And microwave essentially. What is it . A ferrari. We dont think it comes with it. Bearing that in mind, 350,000 euros for a place to hours outside of berlin, a castle, and im moat . Im off. Petite hotel. We will get more. Kaeser joins us after the break. Time for todays company news. Euros. Lion said it will dispose of its noncore assets for another 220 Million Euros. The Worlds Largest personal computer maker posted the slowest sales growth in six quarters. Genova was taken over and the global smart market by chinese competitor. Revenue rose 7. 2 . Missing analyst estimates. Market a shrinking pc and a slowing growth in china. And twitter is celebrating its First Anniversary as a public company. The stock has soared 55 . His performance is less than impressive. Twitters losses are widening faster than sales are gaining. User growth is slowing. The rookie year has been much better. Zyngas and groupon both traded a low. Up, siemens reporteds is earnings. He will get more from the ceo himself. He is joining us shortly on the program. Welcome back to countdown. Im manus cranny. Im anna edwards. Siemens has reported earnings this morning. The siemens Ceo Joe Kaeser joins us live. Thank you for joining us. It start with the assets. You are selling the hearing aids unit. Are you happy with the price you got . Do you wish you did some ipo or flotation Stock Offering . Well, we sold some come petition on the asset. We liked the outcome 2. 1 million in cash. Sounds like a good price. Im very happy with what i see. Lets talk about where you are spending money as well. U. S. Shaleate of the industry and the Growth Potential there, does that justify the price that you are paying . Where is it does the price you have to pay to get involved in this sector are . Sector . Were not paying prices just to be a player of something. On the other hand, we need to out oft value we create the acquisition. We get very close access to the oil industry where we can help in the future. Were very proud to get the agreement with management and the board. I was in the shortterm, we do see the oil price. Think about the fact that the oil has haducer of break even in 2012. We do not expect a massive degeneration of spending. That it is not exactly we believe this is after all a good longterm value. Have you finished doing the deals . Respect more in the shale sec there or oil shale sector or oil sector . Weve got a lot on our plate. We make sure as we convert revenue into profitability, we make sure we will become much more leaner. 2015, we will integrate the acquisitions. We will be dealing to make a sound and powerful portfo lio. In those areas, we believe where very strong and good at. I like what we see. It could always be better. This is not only about energy. It is about securing the numbers and profitability. Sorry. You