Anna a warm welcome to the program. It is 6 00 a. M. In london. Guy shanghai was down pretty hard overnight. Move these the dial. Shanghai continuing to fall following that poor data over the weekend. Anna that has had an impact on the sentiment. This is a picture over shanghai for three days and in the future. Guy the futures are indicating lets get a read on what is happening in europe. Lets show you what is happening to u. S. Futures at the moment. The dow was down by about half of 1 . Firm up overwill the next hour and a we will get to the european trading sector. Yesterday, a negative section. Anna it is hard to imagine that we are in anything but a Holding Pattern until thursday with the fed. We will talk about cars elected a. A lot today. We will start with jim farley. When will they be profitable in europe considering all of the trouble they have had in russia. They have had to back away from their targets. Bmw is another interview. Guy this is where we get into the china conversation. There are two things i want to know about these global manufacturers. What is happening in china and are they worried about the fed . How are the very wealthy doing in the face of all of that turmoil about china . That will be part of the conversation with the rollsroyce motor ceo. He will be with us as well. That is what we are talking about. Luxury cars. Guy porsche is producing a battery card. That sounds like something for a small child but this is the real thing and it was very fast. Were looking forward to those conversations a little bit later on. We will speak to all of the leaders. That is a busy morning we will have. Two minutes past 6 00 a. M. Here in london. Lets get an update to what is happening in the asia trading days. In the drivers seat, taking a look at shares across the region. A lot of events happening with the Central Banks after the political change in austria today. Given the fact that we had new leadership there. Malcolm turnbull. Lets take a look at the equity session there. Is dragging it down. Look at the shanghai composite hearing it is on course for the biggest twoday loss in three weeks. Here are some economic numbers from over the weekend. They are continuing to roil the areets because investors wondering how much further they will see these numbers decline. Having an impact on the hang seng. In hongstock movers kong right now. You are seeing insurers doing well. But the property stocks are not doing that well. Major developer here along with a flagship company, one of asias richest men. Looking at japan, the bank of japan is Holding Steady as you noted in your introduction. Taking it back to the government. The doj is saying to the government that it should figure it out. Perhaps they are waiting to see what the Federal Reserve does and after that they can react to that. And the nikkei 225, we are seeing a modest move in that session. A number of movers including the telecom stocks. They were down yesterday on that news of shinzo abe seeking to change the pricing for mobile. Lets take a look at australia. To the rba due to report that came out. The latest meeting minutes. The report from the chinese economy. Know is the you biggest developed market exposure to the chinese story. Media stocks are doing well. Some resource related shares were declining. At the a quick check currency market. This is what we have on the japanese yen. We are seeing a trade at 119. 95. A significant move there. It is about a quarter of 1 . Watch this move with the japanese yen in the wake of the bank of japans decision. Talking checking in on the aussie dollar. We see a reaction to the significant leadership change. Yesterdayss to news as well. Thank you very much. Guy to the car show now. The worlds biggest car show kicks off in frankfurt today. 200 world premieres of new car models. International automakers plan to outdo one another to make market inroads. Our International Correspondent is behind the wheel. Hans nichols joins us now from this event. China is the big dark cloud. It is a dark cloud but , the ceopoke to martin of volkswagen, he says he expects a normalization in the situation of china. Listen to how he catches it. A normalization process underway in china. We are convinced that china will , no longer into ditches always but it will continue to grow particularly in the west. We are getting ready for this. Coast, china is saturated but there is still growth. That is why in the northwest we have set up a new factory two years ago. Is to build a budget car especially for the west of china. There are over 200 new models that we are talking about here. It is remarkably difficult to steal any of them and if you can drive them off of the floor, this place is a fortress. I had to sprint here. That is why i am so sweaty. It is a massive auto show. We have all of these ceos lined up to speak with. We will be talking to them about china. It is a momentary blip or is there something more fundamental. And also brazil. How much concern is there regarding brazil. You mentioned the fed. If it puts off that rate hike, that would mean a stronger europe. I will try not to talk over this. This is my summons telling me im going on too long. Anna someone is trying to tell you that youre missing your breakfast. Perhaps that is what is going on in the background. Against ll fight car manufacturing is a major component of the german economy. Have any of the automakers you up and talking to had anything to say about the refugee crisis and whether that will reshape the labor market germany or change it in any way . Hans it will. I think a lot of the Car Companies here see an opportunity with the refugee am again as potential workers or builders of the next generation of these cars. We are surrounded by remarkable vehicles of luxury at the mercedes ceo went out of the way to talk about the importance and the opportunity of welcoming into German Society and what they can offer the workforce. There are many people who are having been in danger and in need of support. That is an obligation. On the other hand, it is a great opportunity for our country as we have a demographic of a declining population. We need people to support our growth. Ago, we saw we can see something similar now as people come here from syria and other places. It can be a winwin. We heard similar comments from the volkswagen ceo. Talking about having a Training Program for refugees. I am surprised at how quickly it has been absorbed by what is mostly a luxury segment here. Talking about the need to do something about refugees and the opportunity. We will get back to cars later today. As always, i will be picking out new vehicles that i think suit your personality. Suit you asrs that well. I am warning you, i may be a little bit insulting this morning. Anna we would expect nothing less. Thank you very much. It sounds like a dangerous pursuit. He is very much in the driving seat. Anna and staying in frankfurt, for its suv makes its debut at of its european release next year. It has struggled in europe in recent years. It had a 3 fall in china. Joined at the companys ceo, jim farley. Great to have you on the program. Inc. You for joining us. You began scaling back your expectation regarding profitability in europe about a year ago. A lot of that had to do with russia. Tell us how europes chance for you right now. Progress. Significant we are near breakeven in the second quarter. As you said, the top line revenue continues to grow because of our new models. Really solid progress. We are absolutely right on track to improve our results here. Anna will you be back in the black in 2016 in europe . We are not giving a specific timeframe for that but obviously, the whole team is completely committed to improving our yearoveryear results and we can see real evidence of that in the business. We are now the number one brand for commercial vehicles in europe. Key to our profit. Were launching a lot of new suvs which are also key to our profitability. Does that worry you . Renault . Really is key for us is building a vibrant business and a profitable business, sustaining that profitability in good and bad times. That is the most important thing for us here in europe. To have models and products and services that people love. That is the key. To have that vibrant business. As far as where that works out as far as brand sales, that is not key. Anna how will that play out for you in russia . Troubles you face there. How much pain is too much pain in russia . We you be there if you did not have a joint venture partner. Other competitors are pulling out. We really think that russia provides a great longterm Growth Opportunity for us in europe. Even this year, at 1. 6 million units, russia will be among the top five markets in europe. We are wellpositioned. We watched four new products. In our we have seven lineup. Were working on localization. A lot of adjustments to the business based on the current environment. We really believe in russia as the market. You have an suv behind you. The oil price has gone from 100 a barrel this time last year to less than 50 a barrel where we are now. Taxation in europe muddies the pond a little bit. Oil barrel price change your view . Butt does in the shortterm the utility trend has been growing in europe for a long time and we have seen it up or. Of competencya for us globally. In europe, we will be introducing five new products to compete in this space over the next few years. A real Growth Opportunity. Looking at millennials. The fact that the co2 is competitive now. A lot of utility in the product. It is also the imagery. People want to own something that is special and utilities give you that option as a consumer. Demand continuing even if oil prices reversed. The people at ford have complained about discounting in the european autozone market. Are you victims of that or are you perpetrators . I understand that you and the french carmakers have been discounting. Where does the blame lie if that is the right word for this discounting phenomenon that we see in europe . Is no doubt about it. Europe is one of the most competitive markets in the mainstream segments. Ford is very wellpositioned. We have brandnew products. This is probably our freshest lineup that we have had in europe and that positions us well for that competitive market. Pricing pressures in europe, and a lot of different orcs. Not only in discounts to the consumers but also the channels where the products are sold and ford has made significant progress in our rent to own dealer demo channel mix. We are much better than the overall industry now. That is a key part to our profitability. Metricst are the key europeans are buying cars . When they make their decisions, what are the key decision parameters at the moment . Is it price, is a product . Walk us through how you are looking at the market right now. It is coming out of a different area code. Has it changed from where it was before . Give us a topdown picture. Clearly, what a difference a year makes. Europe continues to grow especially in southern europe. The segmentation, the kinds of vehicles that people are buying are different than a year ago. Utilities are growing and frankly, something we do not talk about is commercial vehicles. Commercial vehicles are very important. They are indicative of the Economic Activity and we are business really grow solidly in europe. It is not something that we talk about when we should focus on it. In terms of Purchase Reasons for customers, it has not changed a lot. What is exciting is to see the importance of technology. A brands reputation around technology innovation. That is why we are launching c2 and a lot of connective vehicle services. That will become more important for customers in europe. Anna thank you very much jim for joining us. Ceo for the ford motor company. We are carrying on with the car conversation. We will speak to the bmw ceo on the challenges ahead in his industry. We will be talking a little bit about china. Anna welcome back. Youre watching countdown. It is 6 19 a. M. [foreign language] guy deciding against adding to the countrys unprecedented ¥80 trillion stimulus program. Japanese policymakers says the economy is continuing to grow at a moderate pace. Welcome turnbull has been sworn in as us trillions Prime Minister as he ousted tony abbott following a leadership challenge. Rethatledged to revitalized the australian economy that has been by the chinese economy. Tax increases that are designed to close to slow the budget down and protected from further credit downgrades. Trimmingent includes social programs and introducing a levy on financial transactions. Anna 20 minutes at 6 00 a. M. Here in london. Back to hans nichols who is at the auto show in frankfurt. To talk to the head of sales at bmw. Hans the head of sales, good morning. Mr. Ian robinson. He has been trying to sell me on something all morning and he has a Layaway Program for me. Thank you for joining us. We have what can only be described as a sleek, sexy automobile. Tell us about the new seven series. Six generations with a lot of history. Everyone has been more successful than the last. 13 new technologies on this vehicle. It is a very simple one like gesture controlled or that you can make the radio go up or the radio go down. Hans i am the driver. You can do everything from a tablet. It can self park itself so that you can get out of the car. You can use your key and move it into a very narrow space. Previouster than the generation. 130 kilos lighter. 300 pounds if you want to turn it a different way. That is a full grown adult. And all of the luggage in the boot. Very sporty and dynamic. When we talk about what is happening in china, what is going to happen for the next two or three months. We have seen what is described as normalization. We always expected china to normalize. During 2014, we thought it would rate and lower growth we ended last year with 70 and 450,000 sales. At the end of august, we are just shy of 1 growth. It is still an enormous market. It is still the largest car market in the world. As you say, it is not the heady doubledigit growth it probably will end up flat. Slightly negative. Having said all of that, clearly, there is a head when in the economy there which is depressing some of the confidence in the consumer. But, every month, we are selling 37,000 cars. A headwindad with in china is at a clip in brazil . A cliff in brazil. We have invested in brazil recently so we brought a new plant online about seven months ago. The economy is definitely seeing some strains. That is washing through into consumer sentiment. Overall, both the brazilian economy and the chinese economy in the longerterm are still great car markets. We are invested for the longterm. In 2016, youil sell more or less than 2015. Slightly less. That gives you a sense of what is happening on the macro position. At thehen you look Federal Reserve and what may happen there, is that something you look at . Look at Economic Performance all over the world. We look at what the fed is doing in the bank of england. They have emotional effects on the market. Customers do take a lead from it. Having said that, we always want to have a global active and there are very few times in history where everything is moving in the same direction that every as in every quarter of the world. Hans i have been waiting to see this, it is not Mission Impossible. Which part will we see in Mission Impossible and which ones are affordable . It is a great movie. Tom cruise uses our vehicles. You see in the movie the m3 which is a very sporty car. X five plugin hybrid. Zero emissions. That is going into the marketplace. ,ou will see the motorcycle which see some pretty rough things in the film. Hans what i did not hear you say was something that could compete with the tesla. When his bmw link to have some sort of tesla keller on the market . We have the eye three and the i8. Hans they are not suvs. I mentioned the plugin. It has zero emissions and about 35 kilometers and a co2 footprint that just a few years ago would have been unheard of in a large vehicle. We think the plugin hybrids really do have a role to play because you get the best of both worlds. You can drive in the city with zero emissions and you can drive out in the countryside for as long as you wish and you have all of the performance. S it is a little bit via bigger. X one has been a great success. We did 730,000 of them. The new car is a little bit bigger. A little bit higher seating position. Very flexible. A fantastic piece of design. Hans im sure our anchors ethics are excited as well. I was going to send you the seven series behind me but its self parks but as we know youre the best park or within zones one through five of london. This is not your vehicle although i could see guy johnson behind those wheels. Anna are you suggesting that guy needs help with his parking because that is another dangers of vein of conversation. I cannot believe your memory that you remember the conversations about my parking. Guy he is commenting on my driving. Thank you very much to hans nichols and ian robinson. We have plenty more exciting interviews coming up. Anna coming up on the program we are going to tackle some other stories as well as a car show. Europes migrant crisis being one of them. Begins to seal its borders as european leaders fail to meet an Agreement Regarding sheltering refugees. A state of crisis is being considered that would allow the use of troops along its borders. We will have more details on that developing story when we come back. Guy it is 6 30 a. M. In london, 7 30 a. M. In brussels in frankfurt. Let me tell you about the stories you need to know about this way. Anna japans central bank has left Monetary Policy unchanged. Japanese policymakers said the economy is continuing to grow at a moderate pace and that the current easing is having the intended effect. Malcolm turnbull has been sworn in as australias six Prime Minister eight years aft he ousted tony abbott following a leadership council. He has pledged to revitalize the austrian economy. Brazilian finance minister has proposed a new round of spending cuts and tax increases that are designed to close a budget gap and protect herself from further credit downgrades. The news include capping salaries of civil servants, trimming social programs and introducing a levy on financial transactions. Guy job cuts. Here with more is caroline hyde. Deutsche bank. Lets start there. Caroline firings and finds. We are anticipating Deutsche Bank to make some