Influx of refugees. Lets start with breaking news. Were waiting for results to come across the bloomberg terminal. This is regarding their exposure to china. In terms of numbers, we are waiting for those the break. The separation process is on track. Here we have the thirdquarter earnings, earnings for interest and tax amateurs asian amortization. That is in line with analyst estimates at the moment, and it is indeed grow from the previous year. They say they are updating on the transaction. We will have to dig into that. Remember, in their last set of earnings when we got that update, they did warn about growing microeconomic risks, particular he russia, brazil, china, the areas of decline. China will not be growing more than 7 . Together these three countries overall 15 of phillips sales. It is a beat overall when you look at earnings. An excess of half 1 billion. Comparable sales of 2 . Come back and i will give you a deep dive into how that transaction is processing regressing. Back to you. Thanks for breaking those numbers down. You want to stay tuned to countdown. I will be speaking to the ceo of phillips. Stay with the show for that in the next 30 minutes. More earnings breaking throughout the show. Will talk about peugeot bringing those numbers as they cross the bloomberg terminal. Lets get across to asia. How the markets are faring after the chinese acted on friday. Standing by in hong kong. How is it looking . Cut by china,ate the sixth and a year, ripples across markets in asia. The shanghai composite rising half a percent. It touched a twomonth high already. It also surge to a twomonth high earlier today. The nikkei closed at 7 10 of a percent higher. It got an early boost by exporters after the yen weakened on friday. Today, strengthening slightly. The auction austrian index unchanged at the moment. A massive ipoh on taking place in japan. The government is expecting to raise 12 billion from privatizing holdings and financial units. We are hearing from a source saying that japan post shares will be priced at or near the range, ¥1100rket to ¥1400. Hearing at the moment that it was priced at the top in depth that range. That would be around ¥1400. Breaking news at the moment. Its not going to give the government 12 billion in privatizing japan post and its financial units. Other movers i want to take you through in asia, sony, toshiba. Sony is in talks with toshiba to buy their image sensor business. Both up more than 2. 5 . Shipbuilders with the biggest a kleiners today. Afterg more than 3 nippon on the foreign the koreanrkets, currency leading declines. Today falling a 10th of a percent. Won falling the most in two months. The same with malaysian ringgit. And the indonesian rupiah. Back to you. Well done. That breaking news, japan postipo coming in at top of the range at ¥1400. Ouras stimulus moves on minds. Not the mostre interesting part of fridays announcement. It wasnt too much of a surprise. We were factoring in another cut. The whole removal of the ceiling with the deposit rates is posing. Interest rates liberalization, so to speak. That makes eight massive difference. Leading to their plan of opening up capital markets. In terms of expectations Going Forward, robbie going to remain in an easing environment. They are mindful that the window of opportunity is getting smaller. Group saysing cimb the rate cut is not the end of the story. Is the economy generating enough growth to create Employment Opportunity that will be soaking up the 10 million urban jobs coming on. Can, there is a right we should be comfortable with. If not, they could do more. Isthis comes as China Gathering beijing to formulate a fiveyear plan. There is some policy continuity expected. What we are looking for is t in policy, a twea terms. Green growth, green industry, dealing with environment of challenges. That is something moving up the agenda rapidly. Still not there. Still not clear what the parties overall strategy is. Where we canea look for more detail. What the chinese great cut we might expect this week from the top level coming his Party Meeting in beijing . It begins today. By thursday, chinese economic and social policies for the next five years will be finalized. David joins us from hong kong. A good day to you. This is one of those seminal moments for the new administration. It is the first plenum, so to speak, but what exactly can we expect here . How broad ranging is a going to be . Im sure you wont mind, because there are so many numbers with the 13th fiveyear plan, this plenum, that plenum, but this will be the fifth plenum. The president of china became the general secretary of the communist party, november 2013, so there would have been five plenums since then. Theof them is on making economy more responsive to markets. The fourth plenum last year, that was on the rule of law. The fifth plenum, which were going into now, is on formulating the next fiveyear plan. That is what we are going to be looking for. Thursday, we will get the Central Committee of the communist party, which is less than 400 members, come out and give guidelines on the fiveyear plan, which will then be produced in a roundabout 10 days after that. David, what are going to be the main planks of this . That hes can a focus on growth, reallyion, new guidance for the entire population of china . I think thats a really good way of putting it, guidance is what this is about. It is a fiveyear plan. You mentioned the two areas i am focused on, wrote and socioeconomic measures. The growth is interesting, because we could potentially see china downgrading its growth up tost or goals coming 2020. At present, that is 7 . Becould between tweaked lower. Its important make sure they have 5 growth on average to be able to reach of their longterm goal, to double capital and income between 20102020. That is a good one to watch. The other one is a very big deal and china. The one child policy. It has been relaxed a little. Oryou have to Single Parents to one child parents, they are allowed to have two children. At 2013, set a goal they set a goal of 2 million babies. They did not meet the goal. That is why theyre looking to relax it or get rid of the policy altogether. Very important for longterm. We know that china has a demographic problem. They have indeed. More on we will hear the fifth plenum. Lets return to that breaking news from philips. It was a beat on the top line, one of theying transactions theyre trying to offload is delayed. Transaction,on spinning off the lighting components of business. That u. S. And regulators are not so please with this deal so far. The committee on foreign investment, a u. S. Regulator has said they have uncovered unforeseen concerns with the deal. The purchaser of the unit apparently trying to engage with them at the moment and taking what theyre calling all reasonable measures to try and address the concerns. They say the closing of the transaction is therefore uncertain. This is going to be a concern because they are trying to spin off the lighting unit in an ipo or direct sale. They are on track to do that for the first time in 2016. The cost are under control. Restructuring costs of 300 million years, the bottom end of that range, and within that range next year as well. The cost of spinning off that unit going well, but trying to sell lower margin businesses such as the lighting components business is now hitting a bit of a regular regulatory roadblock. When youre looking at the numbers in general, health care grow as they continue to invest in the area. Consumer lifestyle doing well. You have some 6 up. 3 on a sales basis for lighting. This is why theyre trying to exit the business. We will see how those regulatory roadblocks continue. Back to you. You can never have enough toothbrushes in the house. Stay with countdown. This will be hacked of a week in terms of Central Banks, the majors, all in focus on bloomberg. China gathering in beijing for the fifth plenum. That discussion is around the economic and social policies for the nest five years. The fifth plenum. Wednesday, fed great decision. Friday, policy statement from the bank of japan. As well as its semi annual outlook reported the question, will the bank of japan expand its Stimulus Program this week . On tuesday, the reporting season, this is when it kicks off. We get the numbers from apple. What are they selling in china . That will be interesting. We also get earnings from twitter. The oil, numbers from majors. Tomorrow is bp. Thursday, shell. Friday, exxon. Will the gains be it in that Global Oil Market . Up next, toyota overtakes volkswagen to reclaim its title as the worlds biggest carmaker. 6 17 a. M. Here in london. Top stories, everything you need to know to kick off your monday. Chinas leaders gather to formulate the nations fiveyear plan. The meeting comes as they confront 7 Economic Growth. In response to the slowdown, but pulls bank cut Interest Rates for the sixth time in a year. The law and Justice Party is on course for victory after tougher stance on refugees, more state control of the economy. The party won more than 39 of the vote. They rejected majority in parliament. It is the first time that any party has held a majority in poland since the reintroduction of democracy in 1989. Has put thernment Postal Services at the high end of the range, ¥1400 a share. Japan Pros Holdings will list on the Tokyo Stock Exchange. Andg with dan postbank japan post insurance. Japan closed bank, and japan post insurance. Toyota overtakes book plugin to reclaim his title is the worlds biggest carmaker. From ar backlash widening emissions cheating scandal. Lets get more. Impact do you think . Were just beginning to see the beginning of the impact. That is absolutely correct. These figures we are seeing, the january through september figures, captured less than two weeks of the fallout from this emission scandal. You really are only just starting to see the beginnings from consumers if you saw any at all in the last few days in september. Its just going to make it more difficult for volkswagen to come back in the Fourth Quarter this year. Manus does toyota have a way to fend off vw . , so you have volkswagen having its own issues going through the last three months of the year. Stop sale in many markets of the diesel models evolve involved in this emissions cheating. Toyota has an ace in the whole of its own with the new preis hybrid coming out by the end of this year. Ius hybrid coming out by the end of the year. That is a significant model for the company. A cell on off a lot in the u. S. As well. It is still kind of to be determined just how much of an impact it will have. It will wait in. Manus what if any Tactical Advantage does volkswagen have in terms of its position in china relative to toyota . Stillkswagen is substantially bigger in the china market. The early indications of the fallout on the industry for a sales tax decrease for smaller engines in the china market may get that the market a little bit of a boost from the government. It will be interesting to see if that has enough of a used for volkswagen to help carry it through the end of the year, because volkswagen after all may not be that impacted in the china market. They dont sell diesels there. It will be a test of how close volkswagen and the government in china is and to what extent their feet arent held to the fire there, because after all those engines are not in china. Manus thanks for the roundup. Our editor in hong kong. Turning back to china, where the commonest party needs for the fifth plenum to finalize social and economic plans for the next five years. A growth target cut is in the cards. To discuss the implications of what is said to come, executive director of Mitsubishi Ufj securities. Lunchtime, a cut in the reserve requirement, a cut in the Interest Rates, and a liberalizing of the deposit structure in china, how significant everyone is talking about how liberalizing the deposit market is, but what do you make of it . The rate cut itself will hardly be transformational. The liberalization measure is a small measure, but not pathbreaking. The way china will get out of this recession with huge excess capacity in the Manufacturing Sector and the construction sector is has to be through what is described as creative destruction, a big wipeout of excess capacity and a lot of market incentive and market functioning well and theyre not prepared to do that. For that reason, it will be a slow and painful adjustment. We have seen what has happened in japan after the bubble of the late 1980s. With a relatively well functioning capitalist economy, it took a long time. Manus the consequence is that you will see perhaps another move on the currency. We have had one depreciation so far. Point you the are critical of this path that they are pursuing to get special drawing rights because our substantial consequences. I would ask the question, for the currency to become an international currency, why go through this route. The swiss franc became an international money, but it wasnt by negotiating the dramatic front with the imf and other great powers. Peopleeated a money that wanted to hold, a fully convertible currency, and having monetary stability. Is being used. Its bound to be used a lot because china is the number two economy in the world. It is not becoming an investment currency that people want to hold. Itsst china is using all of fdr,macy to get into the it has blunted one of the main weapons it could have in the diplomatic game, which would be or europe forpan defying their currencies. 20 summitt imf g everybody was rounding on china for its 2 did i waste. When mario draghi devalued europe by 4 . We are in a currency war. We are. It is the worst since the 1930s. It is being camouflaged by every central bank saying they are pursuing a 2 target. They are using that as a pretext to devalue their currency as we saw in europe last week. Manus the g 20 hardly has teeth, does it . Lets talk about the plenum, the fifth plenum, in terms of what we expect. Saying made a statement they will not be held to this growth rates at any cost. What is realistically possible . Achievable for the fifth plenum . We have to hear more about particularly clawing back the state enterprises and providing more underdeveloped private sector, market economy sector, in china. When not seeing that. In a way, have the west is playing the chinese coming this party game of getting big contracts through state leaders, visiting counterparts in china, rewarding their own crony capitalist back home with contracts with china. Everyone in the west is playing this game. What would benefit that chinese economy would be the opposite this, opening up markets. Manus thank you so much. Executive director of mitsubishi ufl. Up next, a conversation with the ceo of philips. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Manus it is 6 30 a. M. In london , 7 30 a. M. In brussels. Here are the top stories. Japan has priced the nations Postal Services at ¥1400 a share. Maximum. Llion, the all those divisions will list on the Tokyo Stock Exchange on november 4. A surprise surge by the argentine opposition candidate. The first ever runoff with 80 of the vote counted, the two , each holds 35 of the vote. The Runoff Election is scheduled for november 22. Chinas leaders gathering in beijing this week to formulate the nations 13th fiveyear plan. The meeting comes as the worlds secondbiggest economy 7 ference its first sub Economic Growth since the 1970s. In response, the peoples bank of china on friday cut Interest Rates for the sixth time in a year. Are aheadter earnings of estimates from phillips this morning. Lets have a conversation with the ceo of philips, frans van houten. He joins us now from amsterdam. Elcome to countdown looking at your numbers, revenues, nice beat, but the key issue is this the late in the disposal of the lighting unit. What can you tell us . The transaction is delayed. What are the concerns . Is there a possible you can remedy this . Frans van houten yes. Thanks for that introduction. Let me talk a bit about the corridor and i will come back to your question. Carew the combined health and consumer business is growing by 4 and that was really good. Lighting grew by 24 . We had some nice wins. 5 . As up by europe was strong. Bottom line near the margin improved by 22 . Despite a heavy currency headwind of 160 basis points. The accelerated Program Continues to work, and i am pleased with the improvement this quarter. As you are asking, we did flag the led deal, facing uncertainty worky as we look through regulatory issues that were voiced in the United States. This is a confidential process. I wish i could tell more about it, but that is not possible. We remain focused together with our chinese partner towards a closing of the deal. Manus will you look at other ifsible deals in terms of this one is running against buffers. When you consider other propositions from other institutions . I think it isen best to continue to focus on this process as we work through the concerns and hopefully get to a closing. 15 is russia, brazil, and china. How concerned are you . A lot of people are trying to deal with it. How is your business in china . What are you doing to build up your business . Frans van houten lets first scope it a bit out. China is tim percent of philips, and therefore very important region. China is 10 of philips, and therefore a very important region. Philips is well known in china. We have good consumer traction. On the infrastructural side, lighting, we the economy taking its affect. There is much less construction in china. A similar thing in health care, where the level of growth has come down to a trickle. Today, for the whole of 2015, we see modest growth in china. Markets are a different story. India is resilient and doing strong. We see that economy firing o