Anna it has just gone 6 00 here in london. China is your new number of the day. 6. 5 is the number we are having highlighting a minimum growth estimate for what the country needs over the next five years. Not quite so straightforward to transfer into that a new target for the government. 6. 53 specifically. Manus quantitative easing is not the road they want to go. Rate in theinterest United States of america. All based on the fact that she did it. Meeting ise december live. This is a spike in the twoyear Government Bond yields. Concerns about the International State of play, less concerned about that. Anna we have seen this reaction in the twoyear and the dollar and we also saw a reaction in the Government Bond market more broadly. 48 chance of an Interest Rate hike in december. Agenda. The european manus we will have barclays, deutsche, the big exposure to brazil. Ninemonth ordinary profit comes in at 5. 1 billion euro. That is the top line for them for the ninemonth numbers. The bad loan ratio drops to 4. 5 . That was 4. 6 at the end of the Second Quarter. The buffers of capital, core equity. Got . Have you anna i have the numbers out of sony. Second quarter operating profit of ¥88 billion. A little bit lower. It is weaker than analysts had been forecasting. They are raising their fullyear 2015 Sales Forecast and that is there was some expectation that we could see robust demand. Lets get over to yvonne. Yvonne good morning. Lets talk about the sony shares. This after the market closed, but we saw the shares up for the day. Reports that the james bond movie did better on the first last james did the bond movie. You mentioned those weaker than expected earnings. Overall, a mixed picture in the asiapacific. We are down now. After the fomc meeting, signaling a december rate hike, back in play. We are looking at one of the best months since may 2009. We searched about 9 . Japan, not too much direction. Surprising rise in Industrial Production out of the economy. December. For that japan may not have entered into a recession. We will see how that goes. Still a lot of data coming out ahead of that boj meeting. We have Household Spending as well as Inflation Numbers. One big number we are talking samsung,and korea, talking about the longest winning streak in six years. It gained eight days straight. Profit missed estimates, but a big gift to investors. They will tap into that cash pile and buyback 10 billion worth of stock. Nintendo, falling the most in nearly two years. Their mobile lap game app game, they will be delaying for at least two months. Ena, this wasith dna supposed to be nintendos debut into the Smartphone App game market. Some pressures from investors this morning. Manus yvonne, thank you. We have a few more numbers. Third quarter net income comes in at 1. 6 8 billion. Despite the huge depreciation on the brazilian riau against the euro. This is what the market will be focused on. 7. 9 8 million. Anna the chipmaker is heading for a downbeat forecast. It ties into all of our conversations about china. They are citing Lower Consumer spending in china, talking about how the market chris of progressively deteriorated in the Third Quarter. It ties into the whole growth story in china. Partys top communist officials are thought to be planning the reduce their ambitious 7 growth target. And unveiled an annual growth figure of 6. 5 that he said would be necessary to establish a moderately prosperous society. The communist party concludes its fourday gathering to discuss their fiveyear plan today. Manus david tweed is standing by. We spoke to you at the start of the week. We are getting more details over the next 10 days. This is a rather precise number. The minimum growth. Dont forget the. 03. Reallythey mustve been doing their numbers. Truth be told, this is a number we were talking about at the beginning of this week, you and me. Yes, indeed, about 6. 5 is what china needs in order to achieve the goals that have been set by xi jinping of reaching a moderately prosperous society. Capita incomeper by 2020. That is what it means. The fact that he came out and gave this number is an indication that this is a number which has been approved by the communist party and it sets a limit on what the growth target will eventually be when the fiveyear plan is published. Anna anything else expected from the main from the meeting . David dont expect too much. All you would get at the end of the day is the broadest of outlines. This is a wideranging plan. We will get the draft, the draft will not have any numbers in it. We will have to wait until the spring to get the numbers, including what the new growth target is. Guys. Manus thank you very much. The Federal Reserve officials have entered december have hinted december may be the first time we see Interest Rate hikes. The fomc voted to maintain the status quo late last night. Danny blanchflower joins us from new hampshire. His first interview of the day. Thank you so much. What do you make of what we heard yesterday from the fed . Is this a pivot towards december . Here we go again. We really would like to raise rates. Ways, the data does not suggest they should go. Inflation, there is no wage growth, and everybody else is easing. We will see on the strengthening dollar, not very great numbers coming out of big american companies. Ford reports for earnings this week. Reported for earnings this week. Poor earnings this week. This is really wishful thinking. Much ado about nothing. I suspect there is a big split within the community the committee. Manus a very good day to you. This is one of the interesting facts. I read a piece overnight and he is quite impressed by the unity that we have seen, that there is only one dissenter. Janet yellen has done quite a good job bringing the cabal together. It together, but we have heard quite a lot from both sides. That she is not with moving. We have seen lacquer, but there are others. There is a split in some mice. Only one person has voted against her, but the moment they go, my suspicion, we may well see three people voting against. You might see three people going against as well. Janet has to decide, which group is she going to be with . There are strong voices on both sides. We have to really watch the data. We would like to go with following the data. Every single time, the data has not been Strong Enough to go. They want to start, but that is what they have been saying for a long time. Anna they want to follow the domestic data, but they have been distracted by the international situation. Referencedropped that this time around. Without the right call . Danny was that the right call . Denny what has happened since the last meeting is the ecb has made it clear that they intend to increase the amount of easing. The chinese doing the same thing. Yes, there is a drop of those words, but we are in currency skirmishes and everybody else is listening and it makes it tough for you to do the same. They are not astrologist. We are saying it in june and that did not happen. And we are saying it in september. You go in december and the next move is actually that you cut to negative because the president of all of the other central raised their006 next move was to go back again. That concern. Se we just heard from china. China says they need 6. 53 . In terms of growth. Is the world really in such a tortured place that the fed, their hands are tied . It really does tie their hands. Danny lets add another thing to that. There is no inflation. Despite the fact that there are concerns about what has happened to oil, we know that pce in america, excluding food and energy, has continued to fall. Yes, growth around the world is very anemic at best. There is no inflation. There is no inflation. 17 countries in europe that are in deflation. The scale of this deflationary shock is major. They are also fighting against fiscal policy around the world. We have seen all of these moves in the u k. Central banks are fighting against this inflationary shock around the world this disinflationary shock around the world. Anna thank you very much for joining us. Professor of economics at dartmouth speaking to us from new hampshire. Where it is very late or early. Whiskey, we are not sure. Anna we have the numbers from air france this morning. 898 Million Euros. That looks to be ahead of estimates. Talking about the sector as a whole, higher traffic, lower fuel costs. For some of these airlines, the dance could be cost us cautious. Manus we are also waiting for the lufthansa numbers. It is very much about the labor disputes. We are waiting for the lufthansa numbers. Cfo we sat down with the of air france. Coming up later on in this show. Manus it was a strong summer for european airlines, but how competent are they how confident are they that they can weather the winter months ahead . The next set of airline numbers to cross the bloomberg terminal. Anna welcome back, you are watching countdown. Manus Federal Reserve officials have hinted that december may be the first time for the first interestrate increase since 2006. Fomc drop the reference to global risk. The next meeting is december 16 to discuss the timing. Yields on to your treasuries jumped on the news and the hawkish tone caught some investors off guard. Anna the chinese premier says his country needs growth of 6. 53 . Manus is ready to japans Industrial Production expected to increase in september, raising the bar foreign expansion of stimulus in tomorrows policy meeting. Of ading expectations decline of 0. 6 . Anna a busy day from european aviation. Lufthansa is due to report shortly. T way very much for coming in thank you very much for coming in. Air france, striking workers, etc. , etc. These numbers are highest in a decade. Incredible numbers and we are likely to see this across the board. One of the things you have to keep in mind with air france is that last years comparison, they had strikes last year. 500 Million Euros. Numbers acrossng the board. The other thing to point out, they did make the point, they still have to make significant cost cuts. Manus which brings me to the big subject. Cfo, it iswe get the the decline of the carriers. If they are doing well and seeing an improvement, and my incorrect to make the assumption there is some kind of a shift in terms of numbers from the local carriers . The situation this is a strong summer. If you did not make money this summer, you should not be in the business. Stillwcost carriers are moving forward and you will see this very much. They have germany and their targets. Lufthansa ishing going to be aware of. At air france, you saw what it was like a few weeks ago, clothing getting torn out. Those negotiations are not to be made easier. Anna thank you very much. Dividendfending the amid dark earnings season for the worlds crude producers, all spending is getting trend trimmed. Anna the dividend is being spared despite the collapse of gold prices. The company has paid out more than 175 billion to shareholders. Bp,s within chevron and they are all following the same track. We are waiting for the figures. Early this week, we had bp. They cut their investment plans. Hear fromrrow we will further businesses in the sector. Will kennedy can understand us help us understand what is going on. The dividend is almost sacred. Next year, everyone ends putting in place the structure to pay dividends for 2016. Yesterday, we mentioned the 60 area. When you look at the exxon numbers last night, what are the big things you are walking away with . Costcutting. Projects. Elaying to take cost of the business in a world where oil is below 50 a barrel. Anna some businesses are keeping up with business, even though they are canceling projects. Another thing i would point out, these are the two biggest refiners in europe. You will see very strong numbers from their refining businesses. This is the quarter that shows the strength of this model. Fair, in this downturn, you see the strength of the model. We will year something in the form of business. Business . Ss pharma oil business . Saw anna thank you very much. Up next, germany becomes china. Est country to china. Woo everybody is doing it. 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 has just gone 6 30 a. M. In london. These are the stories that you need to know. Anna Federal Reserve officials have hinted that december might be the first interestrate hike since 2006. The fomc drop the reference to global risk and referred to its next meeting as it discussed left off timing. Yields on twoyear treasuries jumped on the news. Manus pfizer has approached a botox maker about merging in a deal that could bring the two together. At an early stage and may not lead to an agreement. Anna air france thirdquarter profit tripled to its highest level in a decade. By strong summer sales. You can see our interview with the air france cfo a little bit later. Profits inbest a decade. They had a strong summer. They are raising their fullyear target for the year. That target was at 1. 5. Beat, 24. 3vely billion. That is up from 22. 6. Thegroup results, 1. 75 whole nine months. Germanwings breaking even. They had a cracking summer. Fuel helped them along the way. The strategic realignment helping them. Anna things to wrap up. Cutting talking about the forecast for diabetes sales. Elsewhere, they have lowered their 2015 revenue outlook as china and the u. S. Technology slows. We have had two companies warning about what they are seeing in china this morning. I am looking first at third chordae core Third Quarter core. The estimate was 1. 44. If we have a look at its dullyear forecast, thir year coming in as a beat as well. It recently spun off its plastics unit in an ipo. This company trying to focus more on health care and crop science. We have seen these earnings coming in as a beat. Reports in the wall street journal that pfizer is considering a merger. This comes after its prospective deal earlier this year with astrazeneca fell through in the end. Anse talks, they are at early stage. This has been a very busy year for the pharmaceuticals industry. 200 billion in transactions pfizer is not commenting at the moment. Look fornother move to those tax inversions. We have an exclusive interview. That will be live at 8 30 a. M. London time. Manus lets get to our colleagues in asia. Take us through. We have had the indication from the chinese, 6. 53 growth to keep the pot bubbling. Yvonne the chinese premier specific on his math, 6. 53 . The minimum growth, he hopes to maintain his moderate growth. The asia region, kind of that next picture. The china stock is investing the shanghai, less than five months after we saw this equity of bubbles burst. It seems like investors have some shortterm memory. Surprise iniggest global markets. Ordinary investors also joining back into the game again. A big chunk of the buying. I want to end on some movers. Today. Shares a big focus they were talking about the biggest natural gas and oil producer. Spending cuts on target. Production rose 24 . Petro china, those earnings coming out after the markets close in just a couple of minutes. Insurers anna thank you very much. Manus we had xi jinpings visit to the United States. And then we had his trip to britain. Now it is germanys time. Angela merkel is beginning a two day trip. Anna our reporter is traveling the chancellor. Talk is to the deals that have been announced so far. The dealsus through that have been announced so far. Deal is 17 billion u. S. Dollars. 130 aircraft, altogether. According to an airbus official, one of the biggest deals so far between airbus and china. Course, the vw ceo is traveling with merkel and the entourage. Is this about damage limitation or is it merkel showing solidarity with whatever biggest opponents and exporters. Good question. Think the new vw ceo gets to know merkel, actually. Secondly, it is kind of trust building. He will make clear to the chinese the German Authorities and vw will wrap up this whole case. Said, i am not really involved in this, but she. S drumming the drum cars in 9000 vw china. Anna thank you for putting that in perspective for us, joining us from beijing. Manus it is a lot tougher for the bond traders. Lets bring in our guest. It is pimcos managing director. Andrew, very good day to you. They just put december back on the table. A roll of the dice, 5050. What did you make of the fomc statement . Andrew finally, they will get this over and done with. Domesticgth and the economy, there is enough for them to do that. This is the most talked about hike. We have been talking about it since may of 2013. The strength is there for them to do it. They removed the concerns they had about the international weakness. That is gone. They are focusing on the domestic economy. A we had an introducing interesting conversation with danny blanchflower. There was only one dissenter this time around. Do you think it will be a unified fed in december . Andrew that is what yellen wants. To the extent there is this ty, the other option everybody is going in the right direction, even those members who expressed concern previously. They were obviously on board for yesterdays decision. So long the data and the lead up to the december meeting support, they will be on board, too. Manus you do your trade in bonds, i have heard. Stephen said there is no inflation. A myriad of other issues. The consensus is that the twoyear Government Bonds will be slightly higher by the end of the year. How do you look at the bond market . We have seen a little bit of a move last night. How you look at the market . Through the eyes of inflation. When you take a mediumterm outlook on inflation, it is hard to find it. Surprised by the muted reaction in the bond market yesterday. Is the door isng hike, verye fed to passively. They decided to leave the door open yesterday. What is happening is the Business Cycle is alive and it is reasonably mature. We are talking about a hike