The bank. Welcome to countdown. 6 00 here in london. Lets go straight to the asian market story. Biggest weekly advance in six weeks. It was looking like it some of thoseg games early in the session but we have seen a pickup again. The shanghai composite up by around half of 1 . Shanghai headed for a weekly advance. We have had career closing pretty flat. The nikkei closing higher by about 1 10 of 1 . Some good gains australia. Up about one third of 1 . In hong kong, things looking a little bit flat at the moment. , the mood has been a little bit weaker in the afternoon session. Some of the main stocks we have been watching. The league performer in terms of Percentage Points of the msci regional pacific index. That is out in north and south agreed to talks. Sharpton japan having its best to date again in four months after an expected return to profitability. Reports that is going to launch a new budget. Elsewhere, prime primary health care in australia lowered its profit forecast. Looking good in japan, also in the health care space. In australia, one of the worst performers. Brighteroking a little as we head into the final couple of hours here in asia. Certainly on track for a weekly gain. The best gain in six weeks in asia. Thank you very much. More from her later in the program. Lets talk about europe now. Mario draghi gets another chance to signal intentions for the European Central banks extended meeting. Ecbomes after an account of s october meeting showed that the council was more worried about the deterioration in the inflation outlook there friday acknowledged during his News Conference. Good morning. How likely is it that rocky gives us any clues about next months meeting . Hans good morning. I am here live from the paris opera house. Already good news from the frankfurt opera house. That will have some sort of extension of qualitative easing. What we are to have today is a conversation between central bankers, lots of actual bankers. This would ecb talk about a couple of weeks ago when it decided to make schedules public of the central bankers. We had a big day ahead. It is getting kicked up by mario draghi. I am going to be listening for some sort of clues on what he said, the effect of what happened paris, the awful violence, what that will be to confidence, what that might do to change his outlook. We have heard from several central bankers and it could pose some sort of risk to everyone acknowledges is a tepid recovery. Draghi. Have mario that allows me to talk about italian opera versus german opera. Gilted here, and we had a bar i will have my cameraman show you. If anything gets too heated, they can settle it over a whiskey here at the bar. Given that you are not entirely sure which city orient, i think should stay away from that far. Hans nichols there on the latest mario draghi watch. We will bring you mario draghi . Live at draghis speech 10 30. At 8 00 a. M. London time. The end line growth is healthy. Obviously, were going into a period of uncertainty in the markets. Going to have rates going up in the u. S. And potentially coming down further in europe. From here, you have got to be more cautious. We have come a long way in recent years. From here, we will be more cautious. Is from Goldman Sachs about our potential bash about this potential policy divergence. Brandon browner joins us now. Extra coming in. It seems that for the First Time Since 1994, we are talking about the potential for centralbank policy. All thrown into stark relief, given december is itself a reason for concern. Relative toake extent of divergence. Off invery little take Federal Reserve policy in december. 25 basis points. In a way, more important than that is what we are seeing from thepe, where we are seeing most likely continuation of the ecbs monetary experimentation. That is in a time when there isnt deflation around and it is quite a radical departure. I would concentrate on what we are seeing on the european side rather than the u. S. On the u. S. , you say there isnt much of a story. Do you heed the warnings about things could happen in markets and we dont see the fed lift off. Talking about the threat of a traumatic event. Orl we see a genetic event will it be taken in its stride by the market. I dont expected to come from what the Federal Reserve is doing. Potential threats out there. Be a big upset or surprise in the economic data. Trigger. Ee that as a anna you mentioned the possibility for internet event in the debt market. That somee worry corporates will be able to service debts anymore. I dont see a link. There are a lot of problems out there in the highyield credit markets. As you mentioned come in the energy area. We can see the private equity area where we have reports where some banks have not been able to sell off loans expected by the end of the year. That could lead to wider problems. In silicon valley, asset price inflation, we have this new this week that u. S. Regulators are looking at how Investment Groups are pricing a lot of the unquoted investments. That is a bit reminiscent of the nonquoted assets up to the 2008 bubble and burst. Anna that doesnt bode well then. Brendan that whole area. When you in extreme valuations, anything can happen. You have to look for similarities across cycles. Some of those are quite unnerving. The dollar int how that plays into fed thinking at the moment. Do you think the dollar will be stronger if we see the fence raise rates and will there be further expectation rate hikes builtin . Or do we suspect the fed is going higher and that is already in the price . Dont see getting a lift from fed action in december which is going to be fairly limp anyhow. I think the key Going Forward is just how resilient and further we could get rises in these asset markets in the u. S. , pulling in funds from abroad, and how resurgent the economy is. Any bad news going to deflation would tend to take away. Have already seen the dollar surged losing steam a little bit against japanese currency. There, we do have more divergent policies. Will we see more qe from the boj . Brendan japans divergence with the u. S. Is much greater than european divergence. Japan right now is actually accelerating its Monetary Base much more rapid than anything weve seen europe or the United States. Japan, there probably is some sort of u. S. Agreement with japan in the background not to go ahead with further monetary experimentation, at least at this point in time, given the sensitivities of china and the idea of stabilizing the chinese currency. Anna thank you for joining us. Brandon brown stays with us from mitsubishi. President time, ecb mario draghi will be speaking in frankfurt. Some clues about what the central bank will do in december. For abn amro begin trading following the financial crisis bailout years ago. Tying up another loose ends. This afternoon, Eurozone Consumer Confidence at 3 00 p. M. U. K. Time. We need to tell the truth to the french people. And we need tost be ready our lives to win. We will win, absolutely. Anna frances Prime Minister defined in the face of terror. Look at the implications. Anna back, youre watching countdown. Mario draghi gets another chance to signal intentions for the European Central banks december meeting when he delivers a keynote speech at Europe Finance week this morning. Meetingof the october shows that the council was more worried about the inflation outlook then drawn he acknowledged there mario draghi acknowledged. We will bring you the speech at 8 00 u. K. Time. 3. 3 billion raised euros in an initial public offering. That allows the dutch government to recoup some of the funds spent bailing out the company during the financial crisis. Companies valued at 16. 7 billion euros. Members of the terrorists sell that carried out last fridays attacking in paris took advantage of the refugee crisis to slip into france. That is according to the french Prime Minister. He said the agreement will be undermined if europe did not tighten security at its external borders. Meanwhile, a french Prosecutor Says the man who says the man who led the attack was killed on a raid on wednesday. His body was found in an apartment in the suburbs of saint denis. Lets get more on this story. The french Prime Minister says the people of his country need to gear up for a long fight against terrorism. We need to temperatures to the people. This one will be long and we need to be ready in give all over lives to win. We will win, absolutely. Discuss. Nty to carolinas in paris with the details. In st. Denis, where the suspect spent his last few hours raid. The police the investigation here is still taking place, because as many as one or maybe two other bodies were found in these apartments. One of them is believed to be a woman, a cousin of abdelhamid abaaoud. The other one, the identity is still being checked. As many as eight people were also arrested during this operation. The police can question them for days. We know as many as nine people were arrested in belgium. As many as seven of them could bombersd to one of the at the stadium. Searches have been taking place since friday, so we could know of more couples is in the next few days. The Prime Minister says that we cannot exclude, of course, more attacks, so this investigation will focus on finding how big was this network around abdelhamid abaaoud. Anna a lot of questions that remain to be answered about how this man of how this man managed to get into paris under the nose of intelligence agencies in france . There have been intelligence about him up the trail had gone cold. What do we understand now . Abdelhamid andoud manus to come back forth between syria and europe at least once. In februaryttack, of this year, he was even giving an interview to the Islamic State paper, boasting of his presence in belgium. In february of this year, his cell phone and laptop found in greece. The interior minister said yesterday that french intelligence authorities only received information of his presence in france three days after the attacks. We received no information from the European Countries to which he might have transferred before arriving in france, indicating he may have reached europe. On november 16, after the paris attacks, the Intelligence Agency of a foreign country outside europe signal his presence in greece. The interior minister, who says we need collective realization from all ministers to move quickly. This of course will be discussed. N brussels today according to different sources, two things could be discussed today. Could be onearea of the issues. The second thing that they will pnr, theis the passenger names records, that could be put in place in august to have a better check of the borders within the eu. Anna thank you very much. For peopleing search involved. Lets think about the broader context of this story. Speaking to abeen number of sources to get their predictions. Europe,ubject of Rebecca Patterson said lets think of that talking wn. Nt with brendan bro the tragic events of friday really focusing attention on this flow of refugees and migrants coming from the middle east, africa. What does that mean for the european economy in 2016 and beyond . One big issue here is what it means for german and french politics. 2016, we have a hall series of important state elections in germany. Question number one is, does this mean significant shift toward the far right party in germany . How far is that undermine merkel, how does she respond to that . I think that is one big issue. Of course, relating that back to the discussion we had earlier today, merkel is crucial in supporting draghi in his monetary experimentation. Her poll numbers are dropping. I think that is one question. Going on from there, again, in the german context and it was mentioned in the most recent migrationut what this will mean for german budget targets. We have seen the french talking about how security is more important. Is fiscal spending going to be back in vogue in europe in 2016 . Brendan i dont think that is so much of an immediate prospect. You will see some effect on budgets. But it isnt for wider fiscal uncertainty, some people have much to focus on. We did see a comment yesterday that he is very happy to see and what it europe does to the far right parties in france and germany, because the far right in europe is proputin. Anna what about what the ecb is wrestling with at the moment . Does it make it politically easier for draghi to sell further qe to the establishment as we have seen with the awful events on friday and the potential trouble for the european economy ahead . Merkel is very close to the big exporting companies, as we know. They are under pressure because of what is happened in china and emerging markets. Together,ut all this drug he has even more cover to go ahead and do what he wants. Obviously, expectations of weaker inflation is not something the ecb wants to take hold. We heard that from praet. Doesnt immediately matter what is driving the weakness in oil prices . Whether it is a whether is a supply story or a demand story. I heard reports that the ecb is wrestling with how to work that out in that dictates how worried they become. Brendan it is in a big concern at an economic level. With inflation at 1 , what is wrong with inflation at 1 . If you were to measure inflation to take account in the big increase in property prices, you would be near 2 inflation. It is very difficult to agree with mr. Druggie that it is a deflation problem in europe. If you concentrate on the core country of germany. Anna that makes it a harder sell for the german economy. Thank you very much. 6 26 in london. Up next, as russian remains stuck in a recession, is a step toward the west a step toward sanctions relief . eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Anna [oh youre watching countdown. Mario draghi gets another chance to signal intentions for the European Central bank when he delivers a keynote speak this morning. It comes after an account of the ecbs october meeting released yesterday shows the council was more in flurry was more worried about the inflation outlook than draghi acknowledged at a recent News Conference. We will bring of his speech live at 8 00 u. K. Time. Members of the terror cell that carried out the attacks last week in paris took advantage of the refugee prices to slip into france. That is according to the french Prime Minister. He said the shenzhen agreement europee undermined if did not tighten their borders. Raises 3. 3 billion euros at a ipo to allow the to recoup somet costs. Emerging markets are about to turn a corner. In a new note, Goldman Sachs proclaims 2016 could be the year they put in a bottom and start to find their feet. Nike has announced a 12 billion buyback scheme and a 2for1 stock flip. Take effect l the plan will take effect whats the current buyback is complete. 30 stock is up more than this year thus far. Now, to look at some of the stories you need to know this morning. Lets have a look at how the markets are performing. Im focusing at the moment on the Commodity Currencies defying the route in commodity prices. We have seen them gain against the dollar. I am talking about the aussie dollar, the new zealand dollar, and the South African rand. What this is about is traders focusing on the potential for gradual rate rises from the fed after the first rate increase, which could happen in december this year. The aussie is poised for backtoback weekly advances, with traders paying the smallest premium on options in more than a year. This is even as iron ore, australias chief export, has dropped to a fouryear low. Part of the game that we saw yesterday was also about the central bank raising the benchmark rate by 25 basis points. Positioning itself ahead of a fed rate increase. Terminal, i can see they are now pricing in a 68 probability of a rate hike. Let me turn to the dollar yen. Basically, the dollars gain against the yen is losing steam. This is as investors are sort of shifting their attention again to have fast the fed raise Interest Rates for next year. You can see here where the dollar actually hits a 13 year high against the yen. The yen is falling back since then. At a threemonth high, the dollar against the yen. That is followed back now what you can see it weakening today. Is even as twoyear treasury yields are offering the widest premium over japanese notes april 2010. This is much less about that spread and much more about the yield curve which is affecting the dollar. Weakening dollar against the yen, but Goldman Sachs recommended next year buying the greenback against both the euro and the yen. Thank you. 6 34 here in london. European more on the response to the france attacks. But speak to in, who is an hour who is aneak to ian, hour brussels bureau. Was arrangedng street after the attacks last week. They are talking about strengthening the eus external border. That is travelers coming back into europe from the u. S. Or from turkey into greece, even london into brussels and paris. It is about eu citizens having a passport systematically checked, checked against a database just find out who they are and where they are coming from. It is about making your of a fortress, really, so the terrorists, like the ringleader of the attacks in paris last week, they know where they are. Anna bloomberg has done some work on what a europe without the schengen agreement would look like, what that would mean. Ith me for travelers, etc. The french seem to think that certain things need to happen on the external border to enable schengen to survive. Ian schengen is europes internal borders. It is about whether you can travel from say, france to germany, without having your passport checked, which you have been able to do for about 20 years. For some time now, particularly eastern and balkan european states have been calling for tighter controls