We have politics to think about. What a combination we have for you this morning. The canadian loonie is under a depression this morning. Anna there is the Prime Ministers decadelong ball. Markets are interpreting this as a little bit of a negative. It is trading a little bit lower this morning. People are nervous around the fiscal picture. Does this mean more deficit spending . A very challenged economy. Guy a different take from what we look for in europe. This is the chart i love, though. They were having such a good day. This is the db adr. Then, we got this. Mid little crater afternoon, in the adr session. What i want to know is, 6 billion arms up in your hedge fund, what are you going to do with it . Assuming you have it for 24 hours. Answers are all trending on twitter. Back to the market. So much is happening currently in equity markets. Lets go to david in hong kong. David a very good morning to you guys. I can tell you none of that 6 billion appeared in equity markets in asia. We do see mostly a ring picture, though. Thenat australia and hong kong. We are looking to push the benchmark lower for eight straight days. Been mostly in a trend. Up. Days down, two days still quite thin, especially here in hong kong and up in about 57ere we do have more minutes in the trading session. Let me break this down further. The original benchmark is down 1 10 of 1 . Have some of these stocks in hong kong. Travel and leisure are down one half of 1 . Streeta selloff on wall is saw some of that trickled through. We did see some weakness and it filtered through into the basic materials. Back to you guys in london. Anna thank you, david. We had comments from williams in the rate hike for the near future. Manus the u. S. Values at the moments are a little negative. We are working our way toward the u. S. Open. We are looking at the negative open and wall street. Now, back in london. Lasthinese presence landed night. It is not surprising that they were given a royal welcome. The visit will bring in more than 30 billion pounds worth of investment deals. Caroline joins us from Buckingham Palace. She is promised to meet the queen later today. Where will we see the benefits . Caroline 3009000 jobs were created. 390,000 jobs were created. Nearly every industry is getting a boost. Think the focal points are going to be technology. Areas of technology here received a boost. I think telik i think technology is one area. You will also see energy and Financial Services front and center. Some of the deals are likely to be struck in the Nuclear Industry with chinese operators helping not only finance, but also design and build new Nuclear Reactors in the United Kingdom and the financial sector. London wants to become the real hub for europe and the yuan denominated transactions. We already see them get their way. We saw the First Release of yuan denominated sales. Clearly, we are starting to get our wishes when it comes to the financial sector. You got a little peek at the room where the chinese president is going to be speaking. They lavish day ahead. Tell us what is planned. Caroline they are parliamentarians here that will David Cameron. His country retreat will also be traveling to manchester, as they i mentioned. They will be going to a football stadium here in london. They are wooing politicians, but also the queen herself. There will be prompt and circumstance behind me. They will be driving down the road in a state carriage. State charles, the son of the queen, will have a private lunch with Queen Elizabeth the second herself. After a stated dinner, a will be staying the night at Buckingham Palace in no less than the same suite, the belgium suite, then Prince William and kate the duchess of cambridge stayed in their marriage night. The red carpet is being rolled out for the beijing prince and his wife. Anna thank you, caroline. Financial details, and if you others, from caroline at Buckingham Palace. Guy we getting to breaking news. We are getting to breaking news. \ we have got be thirdquarter earnings here. We have both the sales and earnings before the depreciation and immature eyes asian. Their 2015ut forecast. What investors have wanted to hear about is something that happened last week. Liasonera shares the lowest in three years. A published a report questioning a. E transparency of teliasoner at the time, they said they were open and transparent. We do have an additional statement. They said their additional Financial Statements are reportingith the standards. Disclosures in the annual report provide sufficient information, they say. That is a further update on that end we will see how the shares react, back to you. Guy thank you very much indeed. Next,coming up competition in the cloud. We will be joined on the phone. Speak tor, we will andy harrison. He is up right and early. That is around 7 00 a. M. U. K. Time, following the company earnings. Anna we will look at what we are keeping our eye on today. Farrell will be speaking to committee inpolicy an exclusive interview, regarding the recent votes in the npc. Dudley and powell will give opening remarks regarding the fed. Then, the revolving structure of the u. S. Treasury market. Fed, speaking of the heliams speaks about 1how will vote. I will not speculate about my views for that meeting. A deep dive into briefings. I spend a whole week preparing for the briefings. I listen to my colleagues. I will not decide on that today. Anna welcome back to countdown. The David Cameron says chinese president will bring more than 30 billion pounds in deals and investments to britain this week. Saysrime Ministers Office that for create 4000 jobs. The countries were plunged into phraseear diplomatic after 2013. Anna after still praying that the yuan remains an appropriate is the firstt currency report from the Obama Administration since august. This just follows the biggest yuan devaluation in 21 years. In advancedd preparations to separate the chinese business. Salescloud subscription more than doubled. We are joined on the phone by the company ceo, bill mcdermott. It is great to have you on the line. Thank you for staying up so late to speak to us. Lets ask you about your outlet. After you gave the headline numbers, there was some suggestion that may be with his performance, you should be upgrading . Why any hesitance around that . Bill thank you so much. It is always nice to have an exceptional quarter for everybody wants you to raise guidance. There has been a lot of enthusiasm at sap. Great momentum, but we still have a lot of work to do to deliver the quarter. Versus raised. We are working to do as much as we can for our shareholders. Every explained in any way why you are not able to upgrade . Bill were not nervous. Every Software Company is in the same situation where the Fourth Quarter is the largest quarter of the year. If you look at our cloud business, we were up 116 . Software and cloud combined for a very Large Company like ours was up 19 . Up operating profit was also 19 . The big strength was in mature markets like europe and america. In the held our own countries where most had a rough time. We held our own. It is true that those countries are more unpredictable than they once were. You have to factor that into your guidance and that is what versus raised. Morning, is the Global Economy slowing down . Seen evidencenot of that in our business. What is interesting about our business is, every company you talk to, they are trying to digitize their corporation so they can become more relevant to their customers and capitalize on the internet of things. Thatnk sap is an innovator helps digitize these businesses and helps these companies grow. If they want to run a leaner and take cost out, it is impossible to do that without great technology. Finally, when i think about the whether youwork, are trying to buy things more effectively, or trying to have your people travel and spend money more intelligently, you need more software. I dont see the slowdown. However, when you look at other companies more reliant on hardware, or potentially peoplebased software, they are not as bullish and dont have pipelines as robust as sap. Are as what i think we very uniquely positioned asset in the corporate hierarchy these days. Guy when do you think he will migrate to your last licensed customer in the cloud . When will that happen . All one could put them the cloud now. We have our flagship business suite. 1300 customers invested in this. I think of this as the digital control room that every board should run their business in real time by. Prefer tor customers run that in their own data center, as opposed to our cloud, or even somebody elses cloud. We are having a philosophy at is that says everything designed for the cloud because Software Designed for the cloud by definition, can run even better. Software wheret our customers want to put it. As you know, a lot of customers today are concerned with their data and the privacy of that data. I think there is going to be a market for on Premise Software for many years to come. Final question. When you look at Margin Development as migrations for the cloud happen, is there going to be greater margin pressure with the relation with the cloud . Seen in thisu have quarter, and his quarter was a very important one for sap, because we turned the quarter with operating profits. Our margins expanded this quarter. So now, you actually see sap expand margins as we have diversified our company to be a market leading cloud company. We have done that by intelligently taking cost out of the company so we can run more effectively and we have done that by making the business transformation. We are not so reliant on the upfront revenue recognition. We have actually built a business and radical recognition based upon the cost base. Within oure operating margins and the expansion operating profit. That is what the market has reacted so positively to our results. They are sustainable. We fundamentally change the model. Anna thank you very much for joining us. We were joined by the ceo of sap. Guy lets go to canada now where the liberal party has swept into office. This was not the expected outcome, was it . Reporter it was expected there would be a liberal i know receipt and this was a big sweep a liberal minority and this was a big sweep. The conservative party led by Stephen Harper is firmly in place and 70 of canadians polled were looking for change. It was going to happen on some level, but we did not think it would be a majority for the liberals. Harper, the stephen Prime Minister, step down. He was elected to power with 100 seats. The liberals at the moment have 184. Youngudeau is the 43yearold, i guess you could say that is young, the son of a rather famous Prime Minister. He had a shaky start in the early days of the campaign. Who could bumbler not get his words out. He was ridiculed. Not many people saw this happening. He did find his seat in the last couple debates and that we see a victory for him. He campaigned on a plan that included going back into deficits. Canada came out of the Great Recession relatively on skate. Unscathed. The first half of this year has seen a technical recession. On trudeau has campaigned putting the country back into a deficit position to have infrastructure spend on. Canadians have gone for the plan. Anna more Infrastructure Spending is a change in the fiscal stance. As the wellknown, the complex is the big question mark. Canada went into a technical recession because of the massive export dollars from oil. A big question about how that money will be made back. At the moment, there will be spending, some stimulus, and mr. Harper, the Prime Minister that just resigned, has been firmly entrenched that we must keep the budget balance. The dollar falls or to a little bit after the results came in. Most people expect with a little stimulus, the dollar will even out. Anna thank you, pamela. Will we get surprises from the Federal Reserve . Well, probably, maybe. John williams, president of the Federal Reserve bank in San Francisco spoke to bloomberg televisions mike mckee. Progress oneen huge the job market. Close to 5 , close to fall appointment. Employment. We understand why that is happening. Meanly due to the decline in oil prices and the strong dollar. I do see a economy that is strengthening. Ande are still risks uncertainties there. The important thing to think about is not just about the first move to raise Interest Rates. It is really that, we are going to need to monitor for a few years. Even when we do start the process of raising rates, it will still be the case of monitoring conditions pretty accommodative and supportive of continued growth. Mike would you vote for an Interest Rate increase on the 28th . On whatl not speculate my views are for that meeting. We start with the process of the deep dive briefings. That starts tomorrow for us. I have spent a whole week preparing for that. It was into my colleagues. I will not decide on that today. Mike if you were to vote for an increase in october, it would shock the markets. Is the fed willing to do that . To do is focus on economic fundamentals. Where the economy is and the progress we have made. And, where we see the economy going over the next couple years. Forakes about a year or two monetary and policy actions to have their full effect on the economy. We have to be looking at the front window and not in the Rearview Mirror. Anna that was the president of the Federal Reserve in San Francisco. Guy lets go to the Deutsche Bank. Its Foreign Exchange unit had 6 billion worth of a mistake. Lets get to the details now. Reporter this was reported in the financial times. Bloomberg has since been briefed on the matter that was indeed, the Deutsche Banks mistake. They mistakenly sent 6 billion to a hedge fund in june. The recover the money a day later. How did this happen . It was a junior person on the Foreign Exchange sales team. They used a growth, rather than a net figure. That prompted a pavement much intended. N their losses then rebounded and the bank says it has no divider. Anna more on the chinese visit to the u. K. When we come back. And it is 6 30 in london 7 30 in brussels. The liberal party has swept into office in canada in a surprise majority. It was the biggest election comeback victory in the history of the country. The nation said needs to return to running a deficit. Guy David Cameron says the chinese president will bring more than 30 billion pounds of deals and investments. That will create 4000 jobs. After the dalai lama visit in 2012, there was a two year diplomatic freeze. Anna the treasury has dropped the reference to the yuan being significantly undervalued. Pboc surprised markets with the biggest yuan devaluation in 21 years. Planning ahut is kfc. Restructuring with they plan to break up the is yum plans to separate the chinese business. Reporter im looking at an index. This is over the past year. What has happened is today, this has risen to its highest level in two months. This is compared to the shanghai composite, which has been pretty flat. You can see this gain of 484 stocks. Filled with technology and biotech stocks. This benchmark has rallied 73 this year. That is compared with a 4 gain in the shanghai composite index. Been tryingnt has to boost spending in the Technology Industry in the effort to offset the faltering industrial sector. We got that growth debt that yesterday that came in better than expected. It was still the slowest quarterly expansion since 2009. It showed a two speed economy with the Services Sector moving ahead of the more traditional, manufacturing, industrials, and exports. Can tell you investors traded 5 billion shares on october 16 on this index. That is more than any pointon thint on this years rally. Has beenhai composite moving downward, on the other hand. Guy thank you very much, indeed. Anna lets get back to geopolitics as the chinese president receives the red cartman treatment. We have been speaking to businesses who cap chinese customers among their most in portent clients. Their most important clients. Howael board explains to us they drive high spending in the british capital. Represent about . 20 of the money spent. We are a hugely important part of that. It is driven by trust. They want to know they are getting the right brand and the right price. It is going home to their family with the fact that they bought saying, i bought this Winter Wonderland and adopted in paris. That is and i bought it in harrods. Valuation. Most the e all of the evidence shows that the a person goes to milan, largest percentage of goods bought are from an italian manufacturer. For thee same United Kingdom. If a person goes to paris from milan they are less likely to buy albury or burberry. What they want to do is pay homage to that heritage. He want to go to where the history and culture is, surrounding a manufacturing. For burberry, that is in london. Guy we are joined from another london landmark, Buckingham Palace. Caroline, what do Companies Want the government to do to boost chinese spending . Isasine make the thv easier. Harr