Anna a warm welcome to countdown. I am anna edwards. Mental i am manus cranny. Weve got breaking news. Manus weve got manus cranny. Caroline, give us the numbers. Caroline net income. Billionoming in at 16. 7 cronin. This is compared to 17. 9 billion. We got net income coming below analyst estimates. The reason . Basic impairment charges. Provision overall. They are having to reduce the guided Capital Expenditure level 260. 5 billion. They are trying to ream back their spending. Their Financial Results continue to be affected by low liquid prices. Clearly the pain that is being exerted on oil majors. The fact that bp managed to eat estimates. We are seeing the pain coming from below oil prices feeding into the expectations that futures of these companies. This is a company that is exposed to the downstream. The refining is at a record high. Dividendded to pay a of . 22 for dollar. That is in line with estimates overall. 3 billion, less than previous years. Raining back their Capital Expenditures by 1 billion. Try to work out how much more this company can estimates. Anna we have seen a threeday drop around the 44 mark. That will be a conversation with the ceo later. Medical you want to stay tuned for that could manus you would stay tuned for that. Interesting to see what his view is. Lower for longer and how they are preparing. Anna this is one of the things, they are all having to deal with deflation. They are having to deal with currency market volatility. Mecca that takes us into the jpmorgan Global Exchange rate volatility. First attempt for everything. What you have got here is when the smb the cap away from their exchange rate. So you saw volatility. What you got here is volatility from china. You see these peaks in volatility. What youve got is a pretty big drop. Jpmorgan, volatility index currency is the biggest drop since february. They are internationally focused. Is thehat struck me number yesterday. We have seen the drop in the demand. Strong dollar, weak demand. International factors manus . Absolutely. We are bringing it down. It is all about the feds. Yvonne how is yvonne youret . Not going to expect much out of aged today. We wait for that fed decision. Much. Are not seeing falling for a second day in the asiapacific. A mix of earnings coming out. Japan though, a buck in the trend. The only green spot. 66 up. E day we ended the day around those session highs that we saw. We did see retail sales that missed estimates. , the hong kong once, dropping the most in a month. Shanghai looking like this, 11 down. Falling the most in a week. Bad earnings, especially bad for traditional industries. We saw the kospi index down. Domestic demands, Department Store sales rose 2. 8 on the year. Australia stocks down. 2 . Weve got Inflation Numbers that were a miss. Cpi for the Third Quarter ended up 0. 5 growth, that is lower than what we saw. You can see the Australian Dollar just plunging here. 71 u. S. Cents. Anna yvonne man, thank you very much. That fed meeting, just to hammer home the expectation. 4 are the nubbers today. This could still be in play. The question is if december is it in play. If december is still in play . The markets is not going to move until when . March. Anna these numbers are coming through from hedge fund futures. Lets switch gears. We will return to that. Lets talk tech. Another blowout Holiday Season is being set for apple. The worlds most valuable Company Recorded reported earnings. Ease investors concerns . Caroline got a picture being. Ainted for apple and twitter very different pictures being painted. Lets get to the juggernaut that is apple. They are going to be caring about the Federal ReserveRate Decision. The strength of the u. S. Dollar knocks a percent off of their overall sales because of the foreignexchange hit. They are managing to exert strength. The fiscal Fourth Quarter is what they came up with. Profit up 31 . Some 11 billion. Youre getting 51 b and dollars worth of sales from apple that quarter. The stand out here. That is what caught my eye. Iphone sales up 87 . Thirdquarter. China slowdown is slowing down a little bit. This Company Still thinks china is going to be the biggest market. They are unrolling more new stores. 25 at the moment. Confidence, tim cook coming out saying i would know there are any Economic Issues in china. That is the strength of demand for apple products, for iphones in particular. New six and the new six s plus. The Asian Community likes bigger phones. Lets have a look at the next quarter, the holiday quarter. You are right, it will be another record, anna. 77 . 5 billion worth. That is 4 growth. Compare that to this time last year. It was 30 growth. We are seeing a marked slowdown. Sales growth is slowing. Dependence is on the iphone. Looking at how much this brings an overall, we are seeing phenomenal amounts of iphones inc. Sold. Iphones being sold. Is it too much dependence. You got a slowdown in the number two product, ipads. Not really seeing the likes of the watch kickoff. They are selling less than 4 million of these products last quarter. They have sold 48 million iphones. Clearly the iphone is really where it is at four i for apple still. No doubledigit growth is expected for apple in terms of revenue until the end of 2017. The past four quarters we have seen what he percent growth in excess of good now we got less than 10 . I want to see what happened over twitter. 58 , buteing sales up thirdquarter user growth is slowing. You got 11 more users. Impair that to 1. 4 billion of this book. Billionre that to 1. 4 on facebook. Iseave you this, the fact they are seeing the quarter, the market wants to see 55 growth in sales. They are promising 45 . Their short therefore it shares plummeted. Anna thank you. Manus we are still on twitter. We are going to talk about what what the ws cost of the emissions scandal. With the hit has been. Are the numbers important . Going to be live at the tokyo motor show. Anna welcome back. Youre watching countdown. Here is the story you need to know. Manus this evening, the Federal Reserve will liver its Rate Decision did the market is pricing in for 4 . A chance for a move on Monetary Policy. There will be no press conference. Norways Biggest Oil Company adjusted income which excluded 436 million. Manus shall says it would take a 2 billion charge as it holds and oil science project in canada. It could not complete its portfolio. The 2 billion charge will be recorded in its Third Quarter earnings released tomorrow. And its thirdquarter earnings released tomorrow. Car industry will be hoping this weeks tokyo motor profit thaning more headlines. Manus a new flagship model at the show today. Fire by Hydrogen Fuel shells. He joins us from tokyo. Great to have you with us on the show. Lets talk about the unveiling behind you. When am i going to be up to walk into a showroom and purchase that . Things for joining us in tokyo. The car behind me is in the ellis fc. It is the lexus future flagship. It is a concept car. It gives you a great hand to where we are taking the lexus in the future. Fuel cell technology. What can be better than taking the most abundant element on hydrogen, putting it into electricity and the result is water vapor. Anna tell us how significant this technology will be. Take us forward five to 10 years. Tell us what balance of your business is going to come from these areas. I cannot give you a prediction on the mix yet, but we feel like the hybrid. We have 12 hybrid vehicles. Electric andd and fuelcell vehicles will be the future. We want to take a leadership role in that. Manus talk to me about the infrastructure challenges in terms of fuelcell. In terms of hybrid and electric. There are still major challenges in the rollout of infrastructure to support your lofty ambition. There are two challenges. One is cost. The comes with any new technology. That is why it is great for us where we can charge more for our cars. The second is in the structure. The good thing is in many parts of the world, there is a lot of developed markets having infrastructural rollout on it pretty rapid basis. Andhe state of california the east end seaboard, there are a lot of stations coming on board to do Hydrogen Fueling. U. K. ,is germany and the korea. Right here in japan we are building a hydrogen society. There are places around the world where they will take a leadership role with technology. Those of the places we like to go first. Anna vbw scandal is something that rocked the entire industry. Seen hink we have does this marked the first stage in the death of diesel . Do you think european carmakers architect but that technology aside . Is the do not think that case. Theyre starting to adopt the technology that we launched years ago. German competitors are starting to launch their first and second hybrid. They agreed that that is where the market is going. There will be a variety of powertrains that work in different parts of the world. The market will move toward electrification. Manus mark, every single carmaker is going to see this as a moment to capitalize and extended their market share. You are already number one. What i want to know is where are you going to target in the nerd the near term to capitalize on the market what brand is going to be key for you in terms of taking advantage of this move . We are not going to let anything else in the industry change our plans. We have developed a plan many is ago. We are good to carry that out. Over the last four years as i have worked here in japan to globalize the lexus brand. That strategy includes a lot of these kind of vehicles. A great design, driving dynamics , expansion of our export lineup our ex sport lineup. A turbo engine as well. Altogether, those will take us to where we want to go without try to take advantage of anyone else. Anna can you attribute any uptick in sales in europe to the problems of vw . D. C. The evidence in your numbers . Mark kirk do you see the evidence in your numbers . Mark no. I attribute that to the product plans that have taken place over the last couple of years. Weve created low co2 vehicles. Our sportier cars. The new lexus annex which we cannot build enough of, those products are driving ourselves. Sales. Weving our have been known for having the best quality and providing the best retail experience. Over the last four years, we have worked really hard to show people the emotional side of our rant. Of our brand. Manus mark, we wish you well. The launch of that beautiful looking car. Anna thank you for competing with the background music. Executive Vice President of lexus international. How does the Auto Industry overcome the reputation from the vw scandal . Securingoke to the trust is the number one priority. The days of the relationship with us is trust. Each carmaker needs to do whatever he has to do in order to maintain this trust alive and strong. Which requires a high level of transparency, communication, coming forward whenever there is a problem, recognizing that. We know that. We have learned it so many years of experiences. Many carmakers have problems of different source in the past. Different sorts in the past. Reserving this trust is our number one goal. Anna keeping with the auto theme, we will have those vw earnings. In about an hour and a half time. First up, well get a Rate Decision from sweden central bank. Manus we got earnings. Volkswagenloyds and and heineken. That is to name a few. Anna the main event is going to be the fed Rate Decision at six clock u. K. Time. At 6 00 u. K. Time. It is no meeting but there is a statement. Committed st what is your number of the day . Anna four. Manus that is the official number. Anna vw is going to be importing a number todays is going to be reporting a number today. Is going to be reporting a number today. Hans has a preview for us. Hans in volkswagen, they talked about an apology. Herbert dietz giving a strong apology. He did not bow as is a japanese custom. Bow dessie pless to make it right. They are working on a fix. We had in the states the transport minister talking about how he did not think it was going to affect the overall german Auto Industry. It just had to do with the technical problems at volkswagen. Forward toing earnings. They could come at any moment. Are expecting is there to be a net quarterly income loss over the next first time in 15 years. When you look at the charts and what is happened, this chart shows the growth that they have had. We are also expecting a net income loss. We take a look at the numbers for 2015. We expect those to come in and for 2016. Billion it is a big come down from where the yard. Lets take a look at overall revenue. Looks like and has been printing money the last few years. Again, we are expected for revenue to come in less than it has been. It is going to go on a downward trend. When you think of the overall challenge volkswagen has, take a look at their geographical revenue income is tradition. They are very strong in europe. 122 billion in sales come from. In north america, a lot of those sales driven by audi, the luxury unit did when you look at luxury unit. You look at the chart, you see where the strong growth has been. It has been in the asiapacific region. North america is where they want to go ahead with the volkswagen brand. Try to turn things around. For the numbers. We are also waiting for the new ceo of volkswagen. He will be on the Analyst Conference call. Normally volkswagen does it with the cfo. The ceo is going to be on this time. Manus we are waiting for my tears were waiting for mattias. They usually leave it to the cfo. What caught my eye, they are already bring in thomas, he is coming in from chevrolet. You have christine than heart. He is already making moves to bridge some of the criticism. Hans mattias wants to start off with a clean slate. He is going to be a different ceo. I think the fact that he is going to be listening on this comp skull and answering questions is an indication that he wants to answer questions and be a slightly different ceo. Manus . Manus hans, thank you. Potentially the first loss in 15 years. It is about the numbers, that is the question. Anna the provisions and any update on that. 6 26. We would take a short break. Next, were been to be talking about the economy and emerging markets. We have an interview for you. South african president tells bloomberg that china has become the of the world. Another example of another country that is swinging so closely to the chinese growth story. Will bring you those words from the South African president when we return. Manus it is 6 30 here in london. 7 30 in russell. These are the stories need to know. Anna apple says it will have another record Holiday Season. The worlds Biggest Company says sales will be between 75. 5 billion and 77. 5 billion. Tim cook is optimistic on china. We see enormous change in china over the next several years. We have seenudy from mckinsey indicates if you look back five years, china has with 50 Million People. If you look ahead, it will have 10 times that number. I feel like we are wellpositioned in china. I am sure we can do better. We are doing fairly well there. Changedares were little in afters out and after hours training in afterhours trading. Medical Third Quarter earnings per share of tensions were double the analyst estimates. The Fourth QuarterSales Forecast fell short of expectations. Stock fell sharply in extended trading on the news of talk percent. 62 sinceoil says crude slumped. They saw adjusted net income fall. That is less than half of last years figure. That was for around 600 million. Over to the get yvonne man. She is looking at the asian markets. A little bit of breaking news. Numbers, get into your 16. 7ays there billion. Hat is a fairly big beat breaking numbers from new more up. Lets get over to yvonne man and check on those asian markets. Out of all of these markets, we are seeing japan being the bright spot. Closed up. The boje are expecting meeting happening on friday. The fed meeting happening later on today. They are talking about this drop in industrial production. They reported that on thursday. Another drop would mean a third consecutive month of declines, feeling concerns. This could mean a second recession since the Prime Minister took office. Talk about china stocks. Three quarters of a percent down right now. The biggest loss and a month. There has been a survey out by bloomberg among economists see one and done of a triple cut this year. To deposit and lending rates. Lookingghai composite at 3408 right now. One company heavily investing in. Hina today a lot of them coming from asiapacific region. A taiwanese company, those all generate revenue more than 50 that comes from apple. We are seeing a mixed picture on some of these apple suppliers. Some big moves today. All falling today here in the asiapacific. Ask you. Back to you. Anna yvonne man, thank you very much. Manus it is fed decision day. , ourand i have been saying guests is chief european hewin. St, sarah welcome to countdown. Anna, what is your number for today . Anna for percent chance of a change in Interest Rates. Does that some things up for you today, sarah . Market economists have a slightly different way of viewing the world. Serpico i think a 4 chance sounds about right. What is more important is what comes out of this meeting. Do we see any key changes in the messaging. Importantly, what is a signaling for december. It is a hohum meeting. Theres no conference. No news forecast. We get the whole works. The press conference. They are also being to us, it would be quite shocking. The nuances of the language are going to be important in terms of validating yellens recent statement.