Makers. The debate begins right here on bloomberg, we will talk to various people ahead of Mario Draghis decision. It has just gone 6 00, the stage is set in frankfurt and expectations are so high. The Financial Savvy will be glued to their smartphones telephones and televisions as mario draghi will probably set up a qe plan. The ecb is not the only central bank coping with deflationary forces. High drama from india to canada and many places in between the mario draghi Takes Center Stage today. He does. It is all anybody is talking about. Everybody will be glued to what exactly mario draghi has to say a little bit later on. Plenty of central bankers are here. Plenty of finance ministers. We walked around yesterday and it was amazing we asked them, who is the most wanted man at davos, and they said it is a ghost of mario draghi. He is not here but he usually comes and this is what everyone is talking about. It will make a difference to everyone here. Angela merkel is here as well which is fascinating because she is due to speak at 2 15, what happens at 2 15 . That press conference with mario draghi. It all kicks off at the same time. You wonder whether or not it was deliberate. The whole scheduling story around today is fascinating in itself. It is the first time that the ecb is meeting on the davos day. This meeting was brought forward by one week. A happy coincidence. Let us hope it is a happy coincidence. Expectations are incredibly high and people are thinking we will see something delivered today and in big form. It is a question of how much the germans have held them back. When you speak to the attendees here, some of them say that because there is so much enthusiasm and because the Central Banks have taken so much on, they are concerned it will push back reform. We spoke to a range of people about what their expectations are and what they see happening. What is interesting that while they agree on a terry holocene is needed, there needs to be they agree that Monetary Policy is needed, there needs to be a push for mario draghi. There needs to be a push for monetary reform as well as stimulus. What is necessary for the eurozone particularly is that it is about coming together around a proper stimulus, combined with the profound structural reform that is the only longterm route. It is the only way to give credibility to any macro measures. The coceo of Deutsche Bank says it is a doubleedged sword. Qe mean stability or europe which is good and a better provision environment and fewer ancram sees and a stable european landscape. Equally, it means very low Interest Rates and the destruction of net interest margins which will be a huge challenge. So we dont want our franchises to suffer. We have to adapt to the demand and it is here to stay. That was anshu jain, he wasnt the only loss speaking here boss speaking here. While there is an expectation that we will see a push from the central bank, this line is a little bit too much for some. There is too much dependency on what the Financial System and what the Central Banks will do to solve problems. They can buy time and create the environment where things can improve what if that time is not used wisely by political processes that we lose the opportunity. The next stage of qe is even less empathic and people begin to have a lack of faith. One of the things that is unclear to me is a lot of ceos say we need to keep a leash on the politicians but at the same time, the market is expecting it and it is unclear how we will achieve growth in europe if you dont get that financial cushioning. There is a real sense that this need to happen, that europe needs to figure out a way to get itself going again and Monetary Policy will play a big part of it, this is a huge day for the eurozone. We will take a break. In just a few minutes, the view of another big hitter. The chief executive of wpp. Welcome back, you are watching bloomberg television. We are live from boss dave us davos the World Economic forum. I bet you are delighted to be here to talk about qe. Why am i doing this . We should talk about your party last night. Talk to us a little while youre here there is so much focus on whether it will change anything in europe, what is your feeling . Things will get better or we are at risk of putting reform in jeopardy . I think we are living in a slow growth world that we dont want to see. Maintainable growth is less in definition and we have in free labor. The level of growth was unsustainable and so we have to get used to this 3 or 4 well 3 or 4 real and were percent or 5 nominal. The Growth Market is 2. 2 , led by america which is over 3 . I think we just have to get used to that. It is not great for us because it means our growth last year is what the budgets were this year. It is the same again this year and maybe a little bit better. Things like qe and europe might make us feel a little bit better but the last figure, sitting on the companys Balance Sheet would be reduced . I dont think so. What about yours . We will see like for like growth and acquisitions ad 2 , we are very active, but nothing big to get you excited about. Currency headwind last year when currency was strong against the dollar and currency tailwind this year because the dollar is much weaker. But the dollar outweighs because it is almost a third of our business. So it is doable but clients lower growth than they want to look at some of the companies that have ordered, lower growth, cost down and no pricing cap because there is no inflation, it drives costs down and makes life for People Like Us very difficult but it is something that we wrestle with. The 3 real growth worldwide is something we have to live with and this is the sixth year since lehman. Central banks are punching huge amounts of money into the system and i think Everybody Knows that we need it but my question is, why is this liquidity not feeding through into inflation. How can we justify it . The first night we were here we had a dinner i think it was off the record but ruffini was giving his usual speech and i said, what is the way out of it . No solution was offered. I think it is a sort of war of attrition that we have to keep on going. Ecommerce will respond. My hope is in relation to the eu issue that britain might have a conservative Led Coalition that by 2017 or whenever the referendum i then by then we will see signs of growth in western europe. France italy and spain are merrily. Primarily, showing son signs of reform. They have been making a little bit of progress still not growing. Germany is in a good position, the german exporters are licking their chops with the weak euro but i think it is unrealistic to believe that companies are going to be aggressive in their expansion plans when theyre faced with fast code markets slowing and slow based markets that are still very challenged with whether mario draghi does enough today and in the future or not. Im surprised you havent mentioned china because we had the premier here yesterday who said growth is slow, get used to it. The fact is chinas economy is a 9 trillion economy, the u. S. Is 16. It is growing at 7. 4 some people say that is not the real number, but even 4 or 5 we would give our eyes and teeth for an europe. The World Economy will depend on two economies, the u. S. And china. 16 and nine. Those economies are key. I am bullish on china. What you heard from the premier will be heard this year and it makes you feel more confident we were told by experts before the changes in the euro that it would take two years and that the incoming leadership would not an equally criticize the previous leadership by rapid measures and that is what they have done with the corruption agenda. We had the planem policies last year that will be revised. It is a Higher Quality growth and the president talked about the savings propensity to save. They have the Health Care Safety net, that is why they save and last but not least the growth and services economy. The chairman of it lack iblak in shanghai and that is a group of ceos committed to stimulate growth in the shanghai region. I am bullish on china. We dont like in a way the west is sort of two faced about it. Someone china to succeed and some dont. When we get to the areas of technology, we say china is still in technology. Alibaba is the sixth Largest Company on the planet. The website doesnt look that good. But the technology is strong. What will it take you bring up the corporate leaders, what will it take for them to change their minds about private Sector Investment . Oil prices have have halved. We had a huge discussion with some competitive media outlets, but there is 2 too much emphasis on the shortterm. The average life of a chief marketing officer in america is two years. It is unrealistic to believe nonexecutive directors dont want to take inordinate risks. It is unrealistic to believe there will be major changes and told become more longterm oriented. Interestingly, the companies that we work with, where you have control and we see hightech companies ipo, it goes against the governance fundamentals. Those were companies that make their decisions in the longterm we had a discussion last night, larry think has been talking about increasing shortterm Capital Gains. The role of iss, whether it should be more sec controlled it has inordinate amounts of power. I think shortterm Capital Gains taxes are fundamental and i think analyzing people for shortterm trading is important. And the role of activist investors, some of whom are more constructive than others has gone way down on decisionmaking. Company ceos see what happens the activists raids that are done small pieces of equity. You think that is not helpful . Sometimes it makes the company better. They do. But it is very shortterm. It makes ceos and boards unwilling to take the risks. Like politicians. Across the board. Their frame of reference is a five year term. We forget the impact of lehman on corporate. We say what was the impact of lehman on consumers . But what it really had an impact on was it made corporate innately cautious. So buy back stock maintain higher dividend for all of those lack swans, the big issue here is when you are asked, what is the thing that keeps us up at night, it was not answer identified risk, it was the black swan geopolitical risk. Things we dont have control over. Thank you so much. We will be bringing you plenty more of interviews with big hitters throughout the days, stay with bloomberg as our dev boss coverage continues throughout the day. Welcome back to london, you are watching countdown. Fighting has continued in the east of ukraine and prorussian rebels have been bolstering their presence. The ukraine president has warned situation is in danger of escalating. What is the latest . Fighting has intensified, not just at the airport, but beyond that on the front lines, ukrainian troops retreating in a couple places and it had a very important rail junction. Meanwhile, the ukrainian president was at all those where he said davos, where he said the ukrainian president told us there is a grave danger of this escalating. The situation is getting worse because we now have information about the 2000 additional Russian Troops crossing our border with more than 200 tanks and we understand this creates a great danger for further escalation of the situation and me as the commander of chief should be in the country. And leave for his country he did, but not before he told delegates that russia had attacked a bus killing several civilians in the last couple of weeks, before he sat down with Christine Lagarde and before separately in berlin the Foreign Ministers of Ukraine Russia germany and france sat down for talks. Germanys foreign minister said produced tangible encouraging results. Where are we when it comes to imf aid for ukraine . They are he had 17 billion worth of assistance and yesterday, lagarde said she will support ukraine getting more money. There are estimates how much money a need, some say they need 15 billion, what we dont know what we do know is if you look at the bonds yesterday, anyone who left the ukraine money in recent history is now expecting there will be some kind of restructuring. Either there will be a nominal your cut care cut they want to try to negotiate more favorable borrowing. If you look at the yield for the 2017 bonds, it went to 41 . Everyone knows they are coming but it is a question of whether it is restructuring light or something more severe. Thank you for the latest on that ukraine story. Interesting that the man from dubya pp was telling us wpp was telling us that the chief geopolitical risks are the ones you dont see coming. Stay with us. You are watching countdown. Time for the fx check. There is only one currency to watch, i chose euro as the currency and you can see it has fallen by 14 against the dollar over the last 12 months. As we await news from the ecb a little bit later, the euro is very close to the level it reached on tuesday which is the lowest since november 11. Look at the peak on that chart. That was march 18 of last year a peak of 1. 3934. Since then the euro has fallen by 17 against the dollar. The median forecast of analysts of bloomberg for the first for the Fourth Quarter is around 1. 16. So pretty much around these levels are the most bearish forecasters, with a 1. 05 forecast. The most bullish is santander there with a 1 santander with a 1. 28 forecast. I am anna edwards, the bank of canada has unexpectedly cut its main Interest Rate by. 25 . They say the Falling Oil Prices will drag down inflation and weigh on everything. The finance minister highlighted the impact of the Oil Price Drop when he spoke to bloomberg in davos. Oil prices are having a complex set of implications and i have mentioned a few of them. On the negative side, lower prices affect corporate profits and the impact on capital expenditure. Meanwhile, the opec secretarygeneral says he does not see oil falling much further. I think the price will not go to 25. I think the price will stay where it is now the big picture will be clearer in june after the first half of 2015. We will know exactly how this low price affected the supply. The ceo of emirates says he Sees Oil Prices staying low. At the moment it looks like the price of oil will remain down for some time to come. I would not suggest it will rise much above the 50 line and that is what i have said in the past, it is the natural settling point in my view. Away from the oil story, Morris Johnson has agreed to pay a Capital Gains tax bill to the u. S. Government. Johnson was born in new york and carries a u. S. Passport making him reliable for the state of claims. He previously described it as outrageous. After months of sent speculation, mario draghi is expected to commit to a 1. 1 trillion euro program of quantitative easing to combat inflation. He does so against strong opposition who say that qe reduces incentive for governments to make structural reform. Lets get to hans nichols who is in frankfurt. A big day for the germans. It is a big day for mario draghi and a big day for reaction. What we think we know is that quantitative easing will be 1. 1 trillion euros. This is according to two people familiar with the matter and maybe in march, this will be 50 billion euros a month in asset purchases all the way through 2016. Behind me that is the ecb building and they will clearly have to market meet Market Expectations 90 of economist believe it will happen. The previous expectation was for 550 billion euros per month. So when we take a look at the lobby expectations of how they are going to do this, take a look at the capital key. These are the bonds they may end up purchasing. This gives you a sense of what everyone owns and how much is out there. Germany at 18 italy 12 , spain 9 . Here is where we stand. Last night they had a dinner with all the members if the governing council has this plan out there that is what is likely to be presented with a still have to agree on it. It is awfully cold outside and i hope it is warm in the new headquarters. There may be some heat if there is disagreement between the germans and the rest of the council. Elaborate on that, the germans have been opposed to any form of bond buying from the start. How is consensus going to be reached with such opposition from the germans . It seems like mario draghi is bending over backwards to try to bring the germans along. He briefed on the merkel last week Angela Merkel last week. What seems to be a dividing line we dont know what they are talking about and have not received a great read out, but it seems to be along the lines of the germans went to isolate the debt and have the National Banks put it on their books and they might be responsible for 50 of the losses. At the same time, countries like italy and spain might not want that debt on their National Bank books. They really arent as powerful in many countries as they once were. That is one line of debate we will be looking at. And we will be looking at the total overall number. If it is close to that 1. 1 trillion number, that will make Mario Draghis goal of drawing the Balance Sheet to 3 trillion euros a lot easier. He wont have to rely on that refinancing operation that had been disappointing. We will speak to you later hans nichols in frankfurt. And he is cold. Fran and guy even colder at davos. Lets see what is going on with the Business Community across the eurozone. I was just commenting how hans looks as cold as us. We are pleased to be joined by mario gr