Banks cut back. The royal bank of scotland will be stashing staff numbers and in japan. Hello. Welcome to countdown. We will beming up, live in paris. Conferenceal tech which brings together leading companies, innovators and startups. We have exclusive interviews through the morning starting with le webs founder. Markets are in focus after us a lot and equities yesterday. Policymakers on short loans. Of parliamentary elections and the Russian Central Bank also meet in the next 24 hours. I will start with greece. What a day. The biggest oneday decline since 1987. That tells you something. Something very interesting happened in the bond market. I will focus on this later. The yield on the threeyear bond went to the yield of a 10 year bond. It is an inverting yield curve. That is a worry because that means greece will not have access to Capital Markets and will face difficulties raising money in the future. The asset markets in greece are flashing red right now. It all came on the same day as we had these tightening moves come from the chinese central bank. Chinesehinese we saw stocks down as much as 10 yesterday. Some weakness in inflation in china. By 2. 7 gate prices down in november, a record 33rd straight decline. That falling oil and Commodity Prices are having an impact. The tightening we saw from the tighter short learn shortterm lending loans in china we saw. We also got analysts asking what the pboc was going to do next. Economists say they have exhausted their ineffective policies with this tool. What is their next move going to be . Are we going to see that . What are basically the measures of what the banks have been set aside. I touched greece, china. I think russia will still come as well. It is the highest levels you have seen since 2013. We are up a third of a percent on the ruvell this morning ruble this morning. The central bank has a meeting tomorrow. It is expected that could raise the rates to 10 . This is the worst performing. The bond markets are also flashing red. Tenure government bonds a nearly 15 , the highest yield since 2009. You have the ruble falling and the Central Bank Meeting tomorrow. 10 seems to be the consensus. Polled sayaders a rate increase of 4 is really needed to get to grips with the currency. Lets get the china where prices are continuing to slide. Consumer prices across the country also rising at the slowest rate in five years. We are joined now from beijing by tom. What is driving this de flation . I think there are two factors at work. The first thing i think this is a positive for the chinese Economy InternationalEnergy Prices are down. Oil prices are down. That is having a cost to the chinese economy. In some ways that is a positive development. It could be a boost of business profit margins. The second factor this is the troubling one what these prices say to deflation in the chinese economy. The legacy of investment in the last few years has been substantial overcapacity across chinas industrial sector. If you combine that with weak demand coming in from the end of 2014, the outcome seems to be the is very limited inflation in the Consumer Sector and deflati on in the factory sector. Chinas central bank has just cut Interest Rates so how does todays data play into the outlook among the policies . Chinas central bank, the peoples bank of china, they presented them as a technical move. Real Interest Rates were too high, they said and that is because inflation rates were low. Well, guess what . The decline in factory prices that we have seen in november has already more than offset the impacts of the rate cuts. The businesses are now facing higher real byline real borrowing costs. That underlines why the central bank felt it was important to move. If we see inflation continuing, that is going to start raising expectations of more cuts in Interest Rates coming in 2015. What does this mean for the chinese currency which at one point yesterday at its biggest interday moves since december 2008 . Are a variety of reasons why people are now shifting their expectations on the currency. On the past, it was about how much the yuan was going to appreciate. Now we are seeing analysts shifting expectations towards the appreciation depre ciation. There is a huge trade surplus which is a substantial undervaluation which is not a big factor as it was. It partly reflects low growth in chinas economy which argues for a week or currency to weaker currency for more demand. Itll add for more expectations epreciation. Thanks a lot. Ukraine and prorussian separatists are close to resuming peace talks as a oneday truce is held. They hope for an end the fighting that is rocked the Eastern Region of the country for much of this year. Ryan, good morning. How big is this seeming progress . Name in a truce only in the sense that they continue to shoot at one another but on a much smaller scale than they have been for the past couple of months. Last time they declared a truce in which two soldiers were killed. This is progress in the sense that both the ukrainians and russian backed rebels have been speaking positively about it. It is important because it sets it up for more peace talks in the city of minsk, belarus later in the week. This is the first step in a long process of getting back on the road to diplomacy. We cut up with the ukrainian president in cigna for singapore. He said this is an example of ukraine at a new crossroads. Think this is decisively important to have a sustainable ceasefire. A strong guarantee from the russian general that the ceasefire will take place. Unfortunately, we have several promises to keep the ceasefire. Yesterday, i was trying to figure out where we are in this crisis. We took a piece of paper and i did the pluses and minuses of what is going on between russia, the west, and the ukraine. A plus is this truce and another plus is russia resumed gas exports the ukraine. This is a complex relationship. Chasinghe armed f16s that Armed Russian jets yesterday. We are seeing a lot of those top gun incidents. It smacks of cold war. We also had the german chancellor of attacking russia against adding that russias ukraine policy should be shamed and maimed. That is really important because she has really been seen as a link between russia and the United States and the United Kingdom where relations are much more acrimonious. Westnk a new low in the russia relationship is also some comments we had from the Russian Foreign minister will effectively made a big at the german chancellor. That is something in my 20 years i have never heard the russians do and suggest this is actually a relationship that will take a while to patch up. Angela merkel has been the political conduit with the west, isnt it . Invery pragmatic, grew up east germany, very aware of living with russia in the form of the soviet union. But, something changed. I dont know if it was in milan or australia but her rhetoric is much tougher now. You remember the last person to make an effort at diplomacy was president Francois Hollande when he stopped over in moscow we go. Interesting because many people think if the french are the ones that are doing the negotiating, prospects for peace and not very good. We believe in there. We will talk about that a little later. Join the conversation on twitter. Ryan is if you have a question on russia, we are always there. On edwards anna edwards twitter. The one person to master twitter. What more can i say . We will go live to paris to gauge the mood of the nations Tech Industry. We will go to to le web. We will bring you an interview with one of the ceos after the break. Welcome back. We are getting some breaking news. The german travel business says their nbumbumbers are mixed. If you look at underlying every 868. 5 million. The profits are coming a touch shy. 512estimates were for million. Guiding thel of it merging group which includes tui. We got the numbers on december 4. The ceo will be speaking later on today on the pulse. Tech leaders from around the role are in paris today for le web, the annual tech gathering. Bloomberg was there to gauge frances 2 Tech Industry in a slowgrowing economy. Caroline brings us an extensive look. Good morning. It has been going on for over 10 years. More than 3000 attendees here. 200 startups and some great stories, including the founder of uber who got the idea of creating the service here when he was stuck in paris and could not find a taxi. Many think that france has become a pretty attractive place. France has introduced tax rates of 7 billion for rnd. These companies are also looking for the best talent. That is one of the reasons phil libin, evernote ceo, is coming to le web. Camet him just after b off the plane. He told me he was setting up a new office in france. I asked him what his view was on for the frances tech scene. Have a listen. I think the view is mixed. There is definitely a lot of sentiment that france is a difficult place to do business with. But, i think the Smart Companies are all contrarian. When the commission wisdom is some places difficult to be, that is probably the best time to go there. The most important thing is the talent. The most important thing to attract Tech Companies in to invest in the education and have the best talent. Frances deftly far ahead in terms of many other places. That will Keep Companies like ours coming back. Places talkt of about making a Silicon Valley summerhouse. Somewhere else. For whatalley is great it does but there are a lot of problems as well. I dont think you need to create Silicon Valley in paris. I think france and europe in general is really on the verge of a notch up her nouriel entrepreneurial renaissance. It will be a great hub or location for technology companies. I think the next revolution that will have the highest impact on one billion people is this revolution in productivity. The idea of what it takes to make us productive is not having the separate tools that are based on physical ideas like a telephone or a slide projector or typewriter, which you can really combine these things that breaks down the barriers of individual productivity. I think people will be more productive next year than they were this year. Technology, a combination of augmented intelligence, wearable computing a new workspace technologies are going to make a profound transformation. Smarterng people to be in the office, to be more productive. That is the ambition of phil libin. Million70 of his 100 evernote users actually use evernote in the office for work. He also said that the company will not be ready for an another couple of years. Of course, the next debate we will have with our guest this morning is also the tax debate. The u. K. Wants to introduce a 25 tax on internationals like google and apple in their country because most of the companies actually find loopholes and do not declare all of their taxes where they make business. We will talk about this and the next tech bubble and the next tech resolution all morning from le web. Thank you, caroline. Anna will be back in 20 minutes for an exclusive conversation with the founder of le web. A Global Equity selloff yesterday with European Markets feeling the effects. Lets bring our conversation back to this. We are joined by peter, is shredded just at seneca investments. China, greece, russia said next week japan. What is number one in what you are interested mostly . Choice. Spoiled for things are all being driven by different things. In japan, you have the upcoming election. The economy is weaker than they were hoping it would be in china. You have Inflation Numbers that are coming in lower. In europe, you have greece resurfacing again. Rush a ongoing. Russia ongoing. I think iseally what the most interesting move is probably in china because it is the biggest move. You have such a strong rally in the last couple of weeks. That was bound to end as it did yesterday. How oil andhrough commodity story plays out in china because we see it having an impact on prices for many months. Hina. Deflation in c on the consumer side as well. I thought oil and commodities going lowers most of help these economies and yet we see this as a reason for weakness sometimes. Yeah. It is a doubleedged sword because on the one hand Lower Oil Price should be good for economies because it is an effective tax rate. On the other hand, you do get Lower Oil Prices feeding through into the broader economy i. E. Yo u get Lower Consumer price inflation. If you have a highly leveraged economy with lots of debt obviously, that is not a good thing because the real value of your debt goes up. It is a doubleedged sword. On balance, i think it is a good thing. Not for some countries, of course. Russia, nigeria, the middle east, but for a lot of countries, it is a good thing. Mark will focus a little government bonds increase. Having a risk is a greek exit. Possibility or reality for 2015 . I suppose is it a possibility . Its a very small possibility. The mechanismst are in place for support to materialize at some point. You go back to where we were three years ago. Those fears about greece exiting the euro. Then implementing new they can force a debt restructuring, couldnt they . Well, i suppose anything is possible. Our view right now is that we will, like we have done for the past few years, just muddle through. At the end of the day, all that matters really is what is Monetary Policy going to be. The fact is that will remain extremely loose. Is dragi going to remain in control of things . Probably yes. We have the results tomorrow. Willere a figure that assuage the markets and maybe it will put off a chance of the ecb buying government bonds . The last figure was below 90 billion. Figure,t 200 billion will that assuage investors or are we just heading towards bond buying regardless . I think we are going towards bond buying. It is probably the more evidence there is that bond buying is required at this point does because dragi feels the need to have the evidence being shoved in his face. If only two was waged the opponents of bond buying. The reality is as he said recently inflation is very low and he is legally obliged to do some thing about that which has to be bond buying. It is because of the oil prices. You almost have to do something. Absolutely right. Morally and legally obliged to do something. Central banks are coping with things the Russian Central Bank meets tomorrow. A lot of economists expected to see rate hikes. A strategist said the priority has to be to prevent a fullscale financial prices crisis. Is that the extent of the worries that the central bank in russia has . I wouldve thought so, yes. Stop capital flight . I dont know. So many of these emerging countries and russia is still an emerging country, they are in much better shape than they were back in the 1990s. Russia is a very different country to what it was in 1998. In some ways, it is a more collocated place. Broadly speaking, and it is a complicated country. We will have to leave it there. Thank you, peter. Coming up, we will go back to paris and gauge the mood of the nations tech sector. Web. S the web le lets have a look at the Fort Exchange market Foreign Exchange market. The yen is finally doing what it was supposed to be doing. The yen is rising in the euro is dying by 4 10 of 1 . Is that your opportunity to get long dollar yen . The yen is rising against all 16 major currencies. Volatility as it a 15 month high. Would you want to keep an eye on election, it is an opportunity. Is anps in the dollar yen opportunity. There is a little bit of risk. Sincengest losing streak 1983 has been broken. What i am hearing according to bloomberg first word is that you are singing Short Covering seeing Short Covering. Macro funds are buying the all dollar. Ar aussie the 30se technicians, day of the dollar has been treating below that since november 19. These are the Bloomberg Top headlines. The National Monetary fund has identified a 50 billion shortfall that is bailed out the ukraine and warns the country faces financial collapse left that gap is filled, according to a report in the financial times. The imf says the additional cash will come on top of the 17 billion announced in april. People briefed about the matter say the gap is opened up because of a 7 traction in ukraines domestic output and the collapse of exports with russia. President obama said the u. S. Government made some terrible mistakes in authorizing torture of suspects in the aftermath of the separate 9 11 attacks. It includes waterboarding and sleep deprivation which is not extract better information that was gained in other ways. His remarks follows the release of the Senate Report on cia interrogations. I think that any fairminded person looking at this would say that some terrible mistakes were made in allowing these kinds of practices to take place in part because i think study after study has shown that when people get tortured, when people are beaten, when people are put in a position of severe stress and pain, oftentimes they are willing to say anything to alleviate that stress and pain. Is notormation we get necessarily better than doing things the right way. T he end is inside for financials emergencies for detroit. The mission in governor says emergency will conclude when the backup plan has final approval. It will be leased to a new Regional Authority raising 50 million a year and the city will borrow 325 million to finance its exit from bankruptcy. Rory mcilroy has been accused of borrowing data from his mobile phone to hide information regarding his split with his former agent. Suing verizon in the bid to end a contract that cost